Shanghai Nenghui Technology Co.Ltd(301046) financial report
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: February 24, 2022
Name of audit institution: Zhonghui Certified Public Accountants (special general partnership)
Name of certified public accountant: Xie Xianqing, Zhai Xiaoning
Body of audit report
Shanghai Nenghui Technology Co.Ltd(301046) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shanghai Nenghui Technology Co.Ltd(301046) (hereinafter referred to as Shanghai Nenghui Technology Co.Ltd(301046) company), including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in owner's equity and notes to 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 parent company's financial position as of December 31, 2021 and the consolidated and parent company's operating results and cash flow in 2021.
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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Shanghai Nenghui Technology Co.Ltd(301046) company 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
（1） Revenue recognition
1. Event description
Shanghai Nenghui Technology Co.Ltd(301046) the company's operating revenue mainly comes from power station system integration, new energy and power engineering design, and power station operation. The operating income during the reporting period is detailed in note V (XXIX) of the financial statements, and the revenue recognition policy is detailed in note III (XXVIII) of the financial statements.
Since operating income is one of the key performance indicators of Shanghai Nenghui Technology Co.Ltd(301046) company, and the specific recognition methods of various business income are different, the inherent risk of misstatement is high. Therefore, we regard revenue recognition as a key audit matter.
2. Audit response
Our main audit procedures for revenue recognition include:
(1) Understand and evaluate the effectiveness of internal control design related to revenue recognition, and test the effectiveness of key control implementation;
(2) Check the sales contract and revenue recognition evidence, review whether the revenue recognition policy complies with the accounting standards for business enterprises, compare it with the listing in the same industry, and analyze whether the revenue recognition policy complies with the industry practice;
(3) Implement analytical review procedures, including the analysis of the fluctuation of income, cost and gross profit margin of various categories in each year, the analysis of the fluctuation of income, cost and gross profit margin of main projects, and judge the rationality of the fluctuation of sales income and gross profit;
(4) Perform detail test and check the internal and external documents related to revenue recognition corresponding to various businesses, including sales contract, sales invoice, stage design result confirmation, letter of acceptance, completion progress confirmation, electricity bill settlement, collection voucher, etc;
(5) Combined with accounts receivable audit, select major customers to confirm their sales revenue and accounts receivable balance;
(6) Select major customers, major power station system integration projects and major power station assets for on-site visits, and interview and confirm with major customers about the projects undertaken during the reporting period and whether there is a relationship with related parties; The overall progress of main power station system integration projects was investigated on site, and the supervisor was interviewed; The main power station assets were investigated on site, and the operation of the power station was understood and verified;
(7) For the sales revenue recognized before and after the balance sheet date, check the sales contract, sales invoice, stage design result confirmation, letter of acceptance, completion progress confirmation, electricity bill settlement, collection voucher, etc., and evaluate whether the sales revenue is included in the appropriate period.
（2） Bad debt provision for accounts receivable
1. Event description
As stated in note V (IV) of the consolidated financial statements of Shanghai Nenghui Technology Co.Ltd(301046) company, as of December 31, 2021, the book balance of accounts receivable of Shanghai Nenghui Technology Co.Ltd(301046) company was 249933900 yuan, and the bad debt provision was 20773000 yuan, accounting for 8.31%. See note III (XI) to the consolidated financial statements for the recognition standard and withdrawal method of bad debt provision for accounts receivable.
Since Shanghai Nenghui Technology Co.Ltd(301046) company recognizes bad debt reserves based on the recoverability of accounts receivable, the determination of the year-end value of accounts receivable requires the management to identify the items that have been impaired and objective evidence, evaluate and predict the future available cash flow and determine its present value, which involves the management's use of significant accounting estimates and judgments, Moreover, the provision for bad debt of accounts receivable is important to the financial statements. Therefore, we identify the provision for bad debt of accounts receivable as a key audit event.
2. Audit response
Our main audit procedures for bad debt provision of accounts receivable include:
(1) Understand the management's key internal control over financial reporting related to credit control, account recovery and evaluation of provision for impairment of receivables, and evaluate the design and operation effectiveness of these internal controls;
(2) Analyze the rationality of Shanghai Nenghui Technology Co.Ltd(301046) company's bad debt provision policy for accounts receivable, including the basis for determining the combination of accounts receivable and the method for determining the expected credit loss; Compare the bad debt accrual policy of Shanghai Nenghui Technology Co.Ltd(301046) company with that of Listed Companies in the same industry;
(3) Evaluate whether the aging interval division of accounts receivable for which bad debt reserves are withdrawn according to aging combination is appropriate, comprehensively evaluate the recoverability of accounts receivable in combination with customer scale, credit situation, historical evidence of default and historical collection, pay attention to the nature of accounts with long aging and whether there is litigation, and implement the letter of credit procedure for accounts receivable; (4) Evaluate the rationality of the management's provision for bad debt reserves in combination with the inspection of Shanghai Nenghui Technology Co.Ltd(301046) company's post period payment collection;
(5) Obtain the bad debt provision accrual table of Shanghai Nenghui Technology Co.Ltd(301046) company, check whether the accrual method is implemented in accordance with the bad debt provision accrual policy, and recalculate the amount of bad debt provision.
4、 Responsibilities of management and governance for financial statements
Shanghai Nenghui Technology Co.Ltd(301046) the management of the company (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.
In preparing the financial statements, the management is responsible for evaluating the going concern ability of Shanghai Nenghui Technology Co.Ltd(301046) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Shanghai Nenghui Technology Co.Ltd(301046) company, terminate operation or have no other realistic options.
The Shanghai Nenghui Technology Co.Ltd(301046) corporate governance layer (hereinafter referred to as the governance layer) is responsible for supervising the financial reporting process of Shanghai Nenghui Technology Co.Ltd(301046) company.
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 to design appropriate audit procedures.
（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 Shanghai Nenghui Technology Co.Ltd(301046) company. 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 Shanghai Nenghui Technology Co.Ltd(301046) company to be unable to continue its business.
（5） Evaluate the overall presentation, 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 Shanghai Nenghui Technology Co.Ltd(301046) company 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. 2、 The unit of the statement in the financial notes to the financial statements is: yuan 1. The preparation unit of the consolidated balance sheet: Shanghai Nenghui Technology Co.Ltd(301046)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 493832364.30 153840792.83
Provision for settlement
Lending funds
Trading financial assets 140384993.41 165840950.14
Derivative financial assets
Notes receivable 2850000.00
Accounts receivable 258616319.74 167857428.92
Receivables financing 7014450.78 13350000.00
Advance payment 16725083.94 1650958.50
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 938534.06 1480487.02
Including: interest receivable
Dividends receivable
Purchase of resale financial assets
Inventory 88570435.83 39796977.47
Contract assets
