Changzhou Xiangming Intelligent Power Co., Ltd
Audit report and financial statements
January 1, 2018 to June 30, 2021
Changzhou Xiangming Intelligent Power Co., Ltd
Audit report and financial statements
(from January 1, 2018 to June 30, 2021)
Table of contents page
1、 Audit report 1-4 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 9-16 financial statements attached Note 1-144
Audit report
Xin Hui Shi Bao Zi [2021] No. zf10867 all shareholders of Changzhou Xiangming Intelligent Power Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Changzhou Xiangming Intelligent Power Co., Ltd. (hereinafter referred to as Xiangming intelligent), including the consolidated and parent company's balance sheets as of December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, and the consolidated and parent company's income statements for 2018, 2019, 2020 and January June 2021 Consolidated and parent company cash flow statement, consolidated and parent company statement of changes in owner's equity and notes to relevant financial statements.
In our opinion, the attached financial statements have been prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company's financial position of Xiangming intelligent as of December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, as well as the financial position of 2018, 2019 Operating results and cash flows of the merger and parent company in 2020 and from January to June 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Xiangming intelligence 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 financial statements for 2018, 2019, 2020 and January June 2021 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
[revenue recognition]
Event description: audit response:
Xiangming intelligence's operating revenue mainly comes from Xiangzhong 1. Understand and test the effectiveness of Xiangming intelligence's internal control system related to sales and collection, and the design and operation of accounting system for sales of motors and fans by customers in China and overseas markets; 2. Check the sales contract, understand the main contract terms or conditions, evaluate the revenue recognition method and the disclosure of operating revenue. Please refer to whether the finance is appropriate; Notes to the statement "III. (XXIV)" and "v. (III, III, III. check the customer's sales order, delivery order and delivery order by sampling for domestic sales revenue)". Because the operating income is the supporting documents of Xiangming intelligent, such as ticket clearance, statement of accounts, payment collection documents and so on; For export sales revenue, take one of the performance indicators of sampling square key, which directly affects the sales order, delivery order, customs declaration, freight bill of lading, freight receipt operation status and profitability of Xiangming intelligent inspection customers, so there are supporting documents such as document management; The management manipulates in order to achieve specific goals or expectations. 4. Confirm the transaction amount and accounts receivable balance in the reporting period to major customers; Due to the inherent risks at the time of revenue recognition, we will 5. Interview Xiangming intelligent salesperson and visit major customers;
Revenue recognition is listed as key audit matters. 6. Select a sample of revenue transactions recorded before and after the balance sheet date of each period in the reporting period, and check the delivery order and other supporting documents to evaluate whether the revenue is recorded in the appropriate accounting period;
7. Combined with the market situation, listed companies in the same industry and the actual situation of Xiangming intelligence, implement the analytical review procedure to judge the rationality of the change of sales revenue and gross profit margin.
4、 Responsibilities of management and governance for financial statements
Xiangming intelligent 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 evaluating the sustainable operation ability of Xiangming intelligence, 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 management layer is responsible for supervising the financial reporting process of Xiangming intelligence.
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:
(I) 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.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management's use of the going concern assumption. 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 Xiangming intelligent. 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 Xiangming intelligent to be unable to continue its business.
(V) 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.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Xiangming intelligent to express audit opinions on the consolidated 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 governance layer, we determine which matters are most important for the audit of financial statements in 2018, 2019, 2020 and January June 2021, 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 accountant of Lixin certified public accountants: Li Huifeng (special general partnership) (project partner)
Chinese certified public accountant: Zhu Zuowu, Shanghai, China October 8, 2001
Changzhou Xiangming Intelligent Power Co., Ltd
Consolidated balance sheet
(unless otherwise specified, the monetary unit is RMB)
Note V assets 2021.6.30202012.31201912.31201812.31
Current assets:
Monetary capital (I) 3077951552440164479741391739302950965366
Provision for settlement
Lending funds
Trading financial assets (II) 158788009020352811081508051724
Measured at fair value and its changes included in the current period (III)
Profit and loss of financial assets 13380000
Derivative financial assets
Notes receivable (IV) 99285727347950197254845246966610496832661
Accounts receivable (V) 17846809644138 Flat Glass Group Co.Ltd(601865) 701224332711211907247619
Receivables financing (VI) 47983425025656845 Shandong Yisheng Livestock & Poultry Breeding Co.Ltd(002458) 664826
Prepayment (VII) 1088792534465439248231378896243896650
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables (Ⅷ) 52671920299836184800793754208425
Purchase of resale financial assets
Inventory (IX) 1249 Zhejiang Jinsheng New Materials Co.Ltd(300849) 1
