Financial statements and audit report of 2021
catalogue
Content page
Audit report 1-6
Consolidated balance sheet 7-8
Company balance sheet 9-10
Consolidated income statement 11
Company income statement 12
Consolidated cash flow statement 13
Cash flow statement of the company 14
Consolidated statement of changes in owner’s equity 15-16
Statement of changes in owner’s equity of the company 17-18
Notes to financial statements 19-143
audit report
Zhong Hui Zi (2022) No. 00151 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) all shareholders:
(I) audit opinion
We have audited the financial statements of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (hereinafter referred to as ” Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) “), including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, consolidated and company’s cash flow statement, consolidated and company’s statement of changes in owner’s equity and notes to relevant financial statements in 2021.
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 company’s financial position as of December 31, 2021 and the consolidated and company’s operating results and cash flow in 2021.
(II) 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) 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
The key audit matters are the most important matters that we consider to audit the current financial statements according to our 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.
1. Revenue recognition
1.1 item description
As shown in note 5.46 of the financial statements, Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) consolidated financial statements have operating income of 5261746246.01 yuan in 2021 and 3425648626.02 yuan in 2020, with an increase of 53.60% in 2021 compared with 2020. As operating revenue is one of the key performance indicators of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , there is an inherent risk that the management manipulates the time point of revenue recognition in order to achieve specific goals or expectations. Therefore, we recognize Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) revenue recognition as a key audit event.
1.2 audit response
The audit procedures related to the evaluation of revenue recognition include the following procedures:
(1) Understand and test the design and implementation of internal control system related to sales and collection;
(2) Select samples to check sales contracts, identify contract terms and conditions related to the transfer of commodity control, and evaluate whether the company’s revenue recognition meets the requirements of accounting standards for business enterprises;
(3) Select the sample size of customers with income in the current period according to the statistical sampling method of detail test for confirmation, and confirm the closing balance of accounts receivable and the sales amount in the current period in the letter, so as to further check the accuracy of the confirmation of sales income in the current period, and check whether the balance of accounts receivable or contractual debt is consistent with the customer;
(4) Check the sales contract, sales invoice, delivery note, acceptance note and other supporting documents related to revenue recognition of major customers;
(5) Compare the unit price and gross profit margin of the varieties with large sales amount in the current period with that in the previous period to verify whether the reason for the change in the current period is reasonable; (6) Check the revenue recognition before and after the balance sheet date and the signing time of the goods receipt document to check whether there is cross period revenue recognition.
2. Goodwill impairment assessment
2.1 event description
As shown in note 5.18 to the financial statements, Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) the book balance of goodwill in 2021 in the consolidated financial statements is 1653523650.04 yuan, and the balance of goodwill impairment provision is 0 yuan. The amount of goodwill is large, and due to the subjective judgment adopted when goodwill is impaired and the inherent uncertainty of estimating future cash flow. Therefore, we identify the impairment of goodwill as a key audit matter.
2.2 audit response
For the evaluation of goodwill impairment, our audit procedures mainly include:
(1) Understand the process and control of goodwill impairment assessment management;
(2) Evaluate the accuracy and relevance of the data provided by the management to the external experts;
(3) Assess the appropriateness of the key assumptions used in the valuation model adopted by the management and the rationality of the input data;
(4) Check the basic data when predicting the present value of future cash with historical data and other supporting evidence, and consider the rationality; (5) Based on our understanding of the facts and circumstances, evaluate the rationality of the significant estimates and judgments used by the management in predicting the present value of future cash flows in the impairment test.
(IV) other information
Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) the management (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the annual report of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) 2021, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information. In combination with our audit of the financial statements, our responsibility is to read other information and consider whether other information is materially inconsistent with the financial statements or the information we have learned in the audit process, or there seems to be material misstatement.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) the management (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 assessing the going concern ability of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) .
(VI) CPA’s responsibility 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) The management shall evaluate the rationality and appropriateness of accounting policy disclosure.
(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 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) going concern ability. 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 result in Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) being unable to continue as a going concern.
(5) Evaluate the overall presentation, structure and content (including disclosure) 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 the entity or business activities in Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) 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.
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.
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Zhonghua Certified Public Accountants (special general partnership) Chinese certified public accountant
(project partner)
Chinese certified public accountant
Shanghai, China, February 18, 2022
Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) consolidated balance sheet as of December 31, 2021 (amount unit: RMB)
Notes to assets December 31, 2021 December 31, 2020
current assets
Monetary Fund 5.1 1138329913.77 705683990.46
Trading financial assets 5.2 20000000.00 20000000.00
Derivative financial assets —
Notes receivable 5.3 552096630.23 966013462.30
Accounts receivable 5.4 1045877896.13 1139271491.40
Receivables financing —
Advance payment
