Ningxia Baofeng Energy Group Co.Ltd(600989) audit report 2021
Ningxia Baofeng Energy Group Co.Ltd(600989)
catalogue
Page audit report 1 – 5 audited financial statements
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 shareholders’ equity 14 – 15 statement of changes in shareholders’ equity 16 – 17 notes to financial statements 18 – 133 supplementary information
1. Detailed statement of non recurring profit and loss 1342 Return on net assets and earnings per share 134 III. basic information of the company 1 Company profile √ applicable □ not applicable
Ningxia Baofeng Energy Group Co.Ltd(600989) (hereinafter referred to as “the company”), formerly known as Ningxia Ningxia Baofeng Energy Group Co.Ltd(600989) Group Co., Ltd., is a joint stock limited company registered in Ningxia Hui Autonomous Region of the people’s Republic of China. It was established on November 2, 2005. The registration number of enterprise legal person business license is 916400007749178406. The A shares of RMB common stock issued by the company have been listed on the Shanghai Stock Exchange. The company is headquartered in Baofeng circular economy industrial park, Ningdong energy and chemical base, Yinchuan City, Ningxia.
As of December 31, 2021, the shareholding ratio of each shareholder is as follows:
Shareholding ratio of shareholders
Ningxia Baofeng Group Co., Ltd. (“Baofeng group”) 35.57%
Dongyi International Group Co., Ltd. (hereinafter referred to as “Dongyi international”) 27.27%
Dang Yanbao 7.53%
Other shareholders 2.21%
Public investors 27.42%
Total 100.00%
As of the balance sheet date, the share capital of the company is RMB 73333 Shanghai Pudong Development Bank Co.Ltd(600000) 0.
The business scope of the company and its subsidiaries (collectively referred to as “the group”) is: production and sales of high-end coal based new materials (polyolefins and polyolefin modified products of various brands); Production and sales of modern coal chemical and fine chemical products (methanol, ethylene, propylene, mixed C5, light hydrocarbon, mixed hydrocarbon, MTBE, methyl tert butyl ether, propane, 1-butene, pure benzene, mixed benzene, xylene, heavy benzene, non aromatic hydrocarbon, liquefied gas, medium temperature asphalt, modified asphalt, anthracene oil, wash oil, mixed naphthalene, phenol oil, light oil, sulfur, ammonium sulfate, liquid oxygen and liquid nitrogen); Production and sales of coking products (coke, crude benzene and coal tar); Coal mining, washing and sales; Project construction of coke (coal) gasification to olefins and downstream products; Production and maintenance of mining equipment; Installation, maintenance and inspection of pressure vessels and pressure pipelines; Calibration of instruments and valves; Internal R & D and personnel management (the above business scope shall be operated with relevant licenses and qualification certificates). (for projects subject to approval according to law, business activities can be carried out only after approval of relevant parts)
The parent company of the group is Baofeng group. As Dang Yanbao holds 95.59% of the equity of Baofeng group, he is the actual controller of Baofeng group. Therefore, the ultimate controller of the group is Dang Yanbao.
The financial statements were approved by the board of directors of the company on March 9, 2022.
2. Scope of consolidated financial statements √ applicable □ not applicable
The consolidation scope of the consolidated financial statements is determined on the basis of control, and there is no change in the consolidation scope during the reporting period.
4、 Preparation basis of financial statements 1 Preparation basis
The financial statements are prepared in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and the specific accounting standards, application guidelines, interpretations and other relevant provisions issued and revised later (collectively referred to as “accounting standards for business enterprises”). 2. Going concern √ applicable □ not applicable
As of December 31, 2021, the current liabilities of the group exceeded the current assets by RMB 464487709139.
The board of directors of the company comprehensively considered the following sources of funds available to the group:
1) The expected net cash inflow of the group’s operating activities in the next 12 months;
2) As of December 31, 2021, the credit line of the group’s unused banking institutions was RMB 837014611170, of which RMB 607544921170 needs to be renewed in the next 12 months. Based on past experience and good reputation, the board of directors of the company is convinced that the available credit line can be re approved when it expires;
3) In view of the group’s credit history, other available financing channels from banks and other financial institutions.
After evaluation, the board of directors of the company believes that the group has sufficient resources to continue to operate for a foreseeable future period of not less than 12 months from the end of the reporting period. Therefore, the board of directors of the company continues to prepare the annual financial statements of the group in 2021 on the basis of going concern. When preparing the financial statements, except for some financial instruments, the valuation principle is historical cost. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. 5、 Important accounting policies and accounting estimates specific accounting policies and accounting estimates tips: √ applicable □ not applicable
The group has formulated specific accounting policies and accounting estimates according to the actual production and operation characteristics, which are mainly reflected in the provision for bad debts of accounts receivable, inventory valuation method, depreciation of fixed assets, amortization of intangible assets, provision of estimated liabilities, revenue recognition and measurement, etc. 1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the group comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the financial position of the company and the group as of December 31, 2021, as well as the operating results, changes in shareholders’ equity, cash flow and other relevant information in 2021.
2. Accounting period
The accounting year of the group starts from January 1 to December 31 of the Gregorian calendar.
3. Business cycle √ applicable □ not applicable
The business cycle of the group is 12 months. 4. Recording currency
The recording currency of the group and its subsidiaries and the currency used in the preparation of the financial statements are RMB. Unless otherwise specified, it is expressed in RMB.
5. Accounting treatment methods for business combinations under the same control and not under the same control √ applicable □ not applicable
Business combinations are divided into business combinations under the same control and business combinations not under the same control.
Business combination under the same control
A business combination under the same control is a business combination in which the enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger, and the control is not temporary. For business combinations under the same control, the party that obtains control over other enterprises participating in the merger on the merger date is the merging party, and other enterprises participating in the merger are the merged party. The merger date refers to the date on which the combining party actually obtains control over the merged party.
The assets and liabilities acquired by the combining party in the business combination under the same control (including the goodwill formed by the final controller’s acquisition of the combined party) shall be subject to relevant accounting treatment based on the book value in the final controller’s financial statements on the combination date. For the difference between the book value of the net assets obtained by the combining party and the book value of the merger consideration paid (or the total face value of the issued shares), the capital premium in the capital reserve shall be adjusted. If it is insufficient to offset, the retained earnings shall be adjusted.
Business combination not under the same control
A business combination not under the same control is a business combination in which the enterprises participating in the combination are not ultimately controlled by the same party or the same parties before and after the combination. For business combinations not under the same control, the party that obtains control over other enterprises participating in the merger on the acquisition date is the acquirer, and other enterprises participating in the merger are the acquiree. The date of purchase refers to the date on which the purchaser actually obtains control over the acquiree.
The identifiable assets, liabilities and contingent liabilities of the acquiree obtained in the business combination not under the same control shall be measured at fair value on the acquisition date.
The difference between the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is greater than the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill and subsequently measured at cost less accumulated impairment losses. If the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, first of all, the identifiable assets The measurement of the fair value of liabilities and contingent liabilities, the fair value of the merger consideration paid (or the fair value of equity securities issued) and the fair value of the equity held by the acquiree before the acquisition date shall be reviewed, If the sum of the fair value of the merger consideration paid after review (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference shall be included in the current profit and loss.
6. Preparation method of consolidated financial statements √ applicable □ not applicable
The consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer to the enterprises or entities controlled by the company (including the separable parts of enterprises and invested units, as well as the structured entities controlled by the company).
When preparing the consolidated financial statements, the subsidiaries adopt the accounting year and accounting policy consistent with that of the company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions between companies within the group are fully offset at the time of consolidation.
If the current loss shared by the minority shareholders of a subsidiary exceeds the share enjoyed by the minority shareholders in the opening shareholders’ equity of the subsidiary, the balance shall still be offset against the reduced shareholders’ equity.
For subsidiaries acquired through business combination not under the same control, the operating results and cash flow of the acquiree shall be included in the consolidated financial statements from the date when the group obtains control until the group terminates its control. When preparing the consolidated financial statements, the financial statements of subsidiaries shall be adjusted on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
For subsidiaries obtained through business combination under the same control, the operating results and cash flow of the combined party shall be included in the consolidated financial statements from the beginning of the current period. When the consolidated financial statements are finally prepared, the related controlling parties will be deemed to have been compared since the preparation of the consolidated financial statements.
If changes in relevant facts and circumstances lead to changes in one or more of the control elements, the group reassesses whether to control the investee. 7. Determination criteria of cash and cash equivalents
Cash refers to the group’s cash on hand and deposits that can be used for payment at any time; Cash equivalents refer to the short-term, highly liquid investments held by the group, which are easy to be converted into known amounts of cash and have little risk of value change. 8. Foreign currency business and foreign currency statement translation √ applicable □ not applicable
For foreign currency transactions, the group converts the amount in foreign currency into the amount in functional currency.
When foreign currency transactions are initially recognized, the amount of foreign currency is converted into the amount of functional currency at the spot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The resulting differences in settlement and translation of monetary items are included in the current profits and losses, except for the differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which are treated in accordance with the principle of capitalization of borrowing costs. With history
