Shenzhen Xfh Technology Co.Ltd(300890) 2021 financial statement and audit report
catalogue
Content page
Audit report 1-4
Consolidated balance sheet 6-7
Company balance sheet 8-9
Consolidated income statement 10
Company income statement 11
Consolidated cash flow statement 12
Cash flow statement of the company 13
Consolidated statement of changes in owner’s equity 14-15
Statement of changes in owner’s equity of the company 16-17
Notes to financial statements 18-106
Audit report
Zhong Hui Zi (2022) No. 01394 Shenzhen Xfh Technology Co.Ltd(300890) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shenzhen Xfh Technology Co.Ltd(300890) (hereinafter referred to as ” Shenzhen Xfh Technology Co.Ltd(300890) “), 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.
The consolidated financial statements of the company as of December 31, 2020 and all the financial results of the company as of December 31, 2020 are prepared in accordance with the accounting standards of the company.
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 Shenzhen Xfh Technology Co.Ltd(300890) , 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.
(I) revenue recognition
1. Description of key audit matters
The sales revenue of Shenzhen Xfh Technology Co.Ltd(300890) mainly comes from the production and sales of negative electrode materials Shenzhen Xfh Technology Co.Ltd(300890) the main business income recognized from the sales of negative electrode materials in 2021 was RMB 111509261903, all of which were revenue from sales. According to note 3.33 of the financial statements, Shenzhen Xfh Technology Co.Ltd(300890) selling cathode materials belongs to the performance obligation to be performed at a certain point in time. The revenue recognition of domestic products shall meet the following conditions: Shenzhen Xfh Technology Co.Ltd(300890) has delivered the products to the customer according to the contract and the customer has accepted the goods, has received the payment or obtained the receipt certificate, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of the goods have been transferred, and the legal ownership of the goods has been transferred. The revenue recognition of export products shall meet the following conditions: Shenzhen Xfh Technology Co.Ltd(300890) has declared the products according to the contract, obtained the bill of lading, recovered the payment or obtained the collection certificate, and the relevant economic benefits are likely to flow in, the main risks and rewards of commodity ownership have been transferred, and the legal ownership of commercial products has been transferred.
2. How do we deal with key audit matters in the audit
The audit procedures related to the evaluation of revenue recognition include the following procedures:
Understand and evaluate the design and operation effectiveness of key internal controls related to revenue recognition;
Select samples to check the sales contracts, identify the contract terms and conditions related to the transfer of main risks and rewards on the ownership of goods and the legal ownership of goods, and evaluate whether the revenue recognition time point of Shenzhen Xfh Technology Co.Ltd(300890) company meets the requirements of accounting standards for business enterprises;
For the revenue transactions recorded in this year, domestic sales: select samples, check invoices, sales contracts, delivery orders and delivery orders, and the company will confirm the revenue after signing the delivery order, of which Byd Company Limited(002594) the revenue will be confirmed according to the amount of the monthly statement; Export sales: select samples, check the delivery order, customs declaration and bill of lading issued by the freight company. The company recognizes the revenue with the bill of lading issued by the freight company, and check and evaluate whether the relevant revenue recognition complies with the accounting policies of Shenzhen Xfh Technology Co.Ltd(300890) company for revenue recognition;
According to the characteristics and nature of customer transactions, select samples to implement letter of confirmation procedures to confirm the balance of accounts receivable and the amount of sales revenue;
Select a sample of revenue transactions recorded before and after the balance sheet date and check the delivery note and other supporting documents to evaluate whether the revenue is recorded in the appropriate accounting period.
(II) impairment of accounts receivable
1. Description of key audit matters
As stated in note 5.4 of the consolidated financial statements, Shenzhen Xfh Technology Co.Ltd(300890) 2021, the balance of accounts receivable was 40508040663 yuan and the amount of bad debt provision was 5673946727 yuan.
When there is objective evidence indicating the impairment of receivables, the management shall withdraw individual impairment reserves according to the present value of the difference between the expected future cash flow and the book value. For receivables without objective evidence of impairment, the management divides them into several combinations for evaluation according to the characteristics of credit risk.
For accounts receivable divided into portfolios, the management refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, calculates the expected credit loss and determines the accrued bad debt provision through the default risk exposure and the expected credit loss rate throughout the duration.
Due to the significant amount of accounts receivable and the significant judgment made by the management in determining the impairment of accounts receivable, we identified the impairment of accounts receivable as a key audit event.
2. How do we deal with key audit matters in the audit
The audit procedures related to the evaluation of the impairment of accounts receivable include the following procedures:
Evaluated and tested the design and operation effectiveness of the company’s credit policy and internal control related to accounts receivable management;
Analyze the rationality of accounting estimation of bad debt provision for accounts receivable of the company, including the basis for determining the combination of accounts receivable and the rationality of the design related to the expected credit loss model of accounts receivable;
Analyze and calculate the ratio between the amount of bad debt provision and the balance of accounts receivable on the balance sheet date of the company, compare the amount of bad debt provision in the previous period with the actual amount, and analyze whether the provision for bad debt of accounts receivable is sufficient;
Evaluate the rationality of the provision for bad debts of accounts receivable by analyzing the aging of the company’s accounts receivable and the reputation of customers, and implementing the procedures of accounts receivable confirmation and the collection after the inspection period;
Obtain the company’s bad debt provision table, and check whether the provision method is implemented in accordance with the bad debt policy in consideration of the industry trend and market development; Recalculate whether the bad debt provision amount is accurate.
4、 Other information
Shenzhen Xfh Technology Co.Ltd(300890) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Shenzhen Xfh Technology Co.Ltd(300890) 2021 annual report, 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.
5、 Responsibilities of management and governance for financial statements
Shenzhen Xfh Technology Co.Ltd(300890) 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 due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Shenzhen Xfh Technology Co.Ltd(300890) and disclosing the matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Shenzhen Xfh Technology Co.Ltd(300890) terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Shenzhen Xfh Technology Co.Ltd(300890) .
6、 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 Shenzhen Xfh Technology Co.Ltd(300890) 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 cause Shenzhen Xfh Technology Co.Ltd(300890) 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 Shenzhen Xfh Technology Co.Ltd(300890) company to express audit opinions 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 Wen Aifeng (project partner) Chinese certified public accountant Wang Pei
Shanghai, China, March 1, 2022
Shenzhen Xfh Technology Co.Ltd(300890) 2021 consolidated balance sheet (amount in RMB)
Notes to assets December 31, 2021 December 31, 2020
current assets
Monetary capital 5.13166159557122299476931
Trading financial assets 5.2507204861013029925342
Derivative financial assets
