Shanghai Newtouch Software Co.Ltd(688590) audit report and financial statements
2017 to 2019
Shanghai Newtouch Software Co.Ltd(688590)
Audit report and financial statements
(from January 1, 2017 to December 31, 2019)
Table of contents page
1、 Audit report 1-5 II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner's equity and parent company statement of changes in owner's equity 9-14 financial statements attached Note 1-214
audit report
Xin Hui Shi Bao Zi [2020] No. za10872 Shanghai Newtouch Software Co.Ltd(688590) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shanghai Newtouch Software Co.Ltd(688590) (hereinafter referred to as Xinzhi shares), including the consolidated and parent company's balance sheets as of December 31, 2017, December 31, 2018 and December 31, 2019, the consolidated and parent company's income statements, consolidated and parent company's cash flow statements for 2017, 2018 and 2019 Consolidated and parent company's statement of changes in owner's equity and notes to relevant financial statements.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company's financial position of Xinzhi shares as of December 31, 2017, December 31, 2018 and December 31, 2019, as well as the consolidated and parent company's operating results and cash flows in 2017, 2018 and 2019.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The "responsibilities of certified public accountants for the audit of financial statements" in the audit report further expounds our responsibilities under these standards. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Xinzhi shares and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
3、 Key audit matters
Key audit matters are the most important matters that we believe are the audit of 2017, 2018 and 2019 financial statements according to professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We will not express separate opinions on these matters.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) recoverability of accounts receivable. For details of accounting policies of accounts receivable and accounts receivable, please refer to "III. audit procedures include: 1. Understand the key internal control related to the impairment of important accounting policies and accounting estimates of accounts receivable" in the notes to the consolidated financial statements for the main analysis of our implementation on the recoverability of accounts receivable, Evaluate the accounting policies described above and note (III) of "v. design of consolidated financial statement control to determine whether it has been implemented and project notes". And test the operation effectiveness of relevant internal control; On December 31, 2019, the company's consolidated financial statements 2. Review the management's accounts receivable recoverability. The original value of accounts receivable in the statement is 680798100. Relevant considerations and objective evidence of evaluation; The bad debt provision is 56.0764 million yuan. In March 2018, for accounts receivable with significant single amount, on December 31, the sample should be taken from the company's consolidated financial statements for review. The management estimated that the original value of accounts receivable in the future was 501.6222 million yuan, which was the basis for evaluating the cash flow of bad debts;
The reserve is 36.7434 million yuan. On December 4, 2017, for the accounts receivable for which the management made bad debt provision according to the combination of credit risk characteristics as of December 31, 2017, the original value of credit was RMB 392.7448 million, and the bad debt provision was analyzed according to the risk characteristics and aging, and the management was evaluated as RMB 26.7162 million. The management of the company determines the rationality of the provision for accounts receivable; When estimating the recoverable amount of accounts, it is necessary to evaluate the relevant 5. Check the customer information, the credit situation of historical payment and subsequent collection customers, including the contract credit period and payment situation, and select important customers to visit the payment arrangement and authenticity of historical credit loss, actual repayment and other factors;
Plain. 6. Select the customer sample according to the sampling principle and verify that the management of the company needs to use significant accounting estimates when determining the accounts receivable and the recoverable amount of sales during the expected reporting period of accounts receivable; And judgment, and the amount affected is significant. Therefore, we determine the recoverability of accounts receivable as the key audit matter.
(II) revenue recognition the details of accounting policies for revenue recognition and the classification of revenue. For the main audit analysis related to the evaluation of revenue recognition, please refer to the notes to the consolidated financial statements "III. important procedures include: 1. We understand the internal control cycle of sales and collection of Xinzhi shares and implement the accounting policies and V. notes to "line through test of consolidated financial statements and notes to key items such as customer revenue recognition" (35). The control test is carried out at the control point to be;
Xinzhi Co., Ltd. has confirmed that the operating revenue in 2019 is 2. Select samples to check the sales contract, analyze and identify RMB 1117698600, the operating revenue in 2018 is the contract terms related to risk and reward transfer and RMB 993357900, and the operating revenue in 2017 is the condition to evaluate whether the revenue recognition time point meets the enterprise's 88056100 yuan.
The requirements of accounting standards for industry;
The company's main business is software development service and department. 3. Check various business indicators related to revenue and separate software outsourcing services. Among them, the software development service analyzes the abnormal changes and compares them with the same industry. 4. Select general solutions based on customer information and customized solutions based on customer information. Authenticity of; Inquire about the laws of major customers, the registration data and business background of the company during revenue recognition according to different business models, and confirm whether there are differences. As the income is Xinzhi shares, there is a relationship with the company. As one of the key performance indicators of the company, there is the inherent risk of management 5. Sampling and measuring the income recorded in the reporting year, and the management manipulates the acceptance test in order to achieve specific goals or expectations, and checks the sales contract, acceptance report or work confirmation time point. We will send the new quantity confirmation form and other supporting documents; Share income is recognized as a key audit event. 6. Select samples of income transactions recorded before and after the balance sheet date, and check supporting documents such as acceptance report or workload confirmation sheet, so as to evaluate whether the income is recorded in the appropriate accounting period;
7. Combined with the audit of accounts receivable, select the main customers to confirm the current sales volume.
4、 Responsibilities of management and governance for financial statements
The management of Xinzhi Co., Ltd. (hereinafter referred to as the management) is responsible for preparing the financial statements in accordance with the provisions of the accounting standards for business enterprises to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the financial statements are free from material misstatement caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of Xinzhi shares, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless it plans to liquidate, terminate operation or has no other realistic choice.
The financial management is responsible for the supervision of the financial reporting process.
5、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that the audit performed in accordance with the audit standards will always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the financial statements based on the financial statements, the misstatement is generally considered to be significant.
In the process of carrying out the audit work in accordance with the audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(1) Identify and assess the risks of material misstatement of financial statements due to fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failing to find major misstatement caused by fraud is higher than that caused by error.
(2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(4) Draw conclusions on the appropriateness of management's use of going concern assumptions. At the same time, according to the audit evidence obtained, draw a conclusion on whether there are major uncertainties in the matters or circumstances that may lead to major doubts about the sustainable operation ability of Xinzhi shares. If we conclude that there is significant uncertainty, the auditing standards require us to draw the attention of statement users to the relevant disclosures in the financial statements in the audit report; If the disclosure is insufficient, we should express a non unqualified opinion. Our conclusions are based on the information available as of the date of the audit report. However, future events or circumstances may cause Xinzhi shares to be unable to continue to operate.
(5) Evaluate the overall presentation (including disclosure), structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Xinzhi shares to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
We communicated with the management on the planned audit scope, schedule and major audit findings, including the internal control defects that we identified in the audit.
We also provide a statement to the management that we have complied with the professional ethics requirements related to independence, and communicate with the management all relationships and other matters that may reasonably be considered to affect our independence, as well as relevant preventive measures (if applicable).
From the matters communicated with the management, we determine which matters are the most important for the audit of the current financial statements, thus constituting key audit matters. We describe these matters in the audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare cases, if the negative consequences of communicating a matter in the audit report are reasonably expected to exceed the benefits in the public interest, we determine that we should not communicate the matter in the audit report.
Chinese Certified Public Accountants of Lixin certified public accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Shanghai, China April 17, 2002
Shanghai Newtouch Software Co.Ltd(688590)
Consolidated balance sheet
(unless otherwise specified, the monetary unit is RMB)
Asset note V December 31, 2019 December 31, 2018 December 31, 2017 December 31
Current assets:
Monetary capital (I) 306283609.17 265146430.95 263299961.47
Provision for settlement
Lending funds
Transactional Finance
