Jiangsu Jiuwu Hi-Tech Co.Ltd(300631)
2021 annual audit report
catalogue
Page I. audit report 1-6 II Financial statement 7-18 (I) consolidated balance sheet 7-8 (II) consolidated income statement 9 (III) Consolidated Cash Flow Statement 10 (IV) Consolidated statement of changes in owner's equity 11-12 (V) balance sheet of parent company 13-14 (VI) profit statement of parent company 15 (VII) cash flow statement of parent company 16 (VIII) Statement of changes in owner's equity of the parent company 17-18 III. notes to financial statements 19-133
Audit report
Zhonghui kuaishan [2022] No. 0466 Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) all shareholders:
1、 Audit opinion
We have audited the financial statements of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) (hereinafter referred to as Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 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 provisions of the accounting standards for business enterprises in all material aspects and fairly reflect the consolidated and parent company's financial position of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 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. We shall not express an opinion on these matters based on the overall audit of the financial statements. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) revenue recognition
See note 3 (34) to the financial statements and note 5 (43) "operating income / operating cost" to the financial statements for relevant information disclosure.
1. Item description
Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company's main business is the sales of the overall solution of membrane integration technology. Since revenue is one of the company's key performance indicators, there is an inherent risk that the management manipulates revenue recognition in order to achieve specific goals or expectations. We identify revenue recognition as a key audit matter.
2. Audit response
The main audit procedures for revenue recognition are as follows:
(1) Understand, evaluate and test the design and operation effectiveness of key internal controls related to revenue recognition of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company.
(2) Understand the revenue recognition policy of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company and evaluate whether the revenue recognition policy of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company meets the requirements of accounting standards for business enterprises by consulting the sales contract and interviewing the management.
(3) Implement analysis procedures for revenue, including analysis procedures for the current period's revenue and gross profit margin of main customers compared with the previous period.
(4) Perform detailed tests on Revenue:
For the sales of membrane integrated technology integrated solution completed by system commissioning and recognized as revenue after acceptance, the procedures we implement include sampling and checking the sales contract, order, sales invoice, acceptance form or receipt form to check whether the revenue recognition is consistent with the disclosed accounting policies and whether the revenue recognition amount is accurate; Select samples to implement the letter of confirmation procedure to confirm the balance of accounts receivable and sales revenue; Test the sales revenue recognized before and after the balance sheet date to determine whether there is any situation of early recognition of revenue or delayed recognition of revenue;
For the sales of membrane integration technology overall solutions whose revenue is recognized by the percentage of completion method, the procedures we implement include obtaining major construction contracts and reviewing key contract terms; Evaluate the judgment and estimation adopted by the management in determining the estimated total contract cost and the rationality of the contract revenue recognized by the percentage of completion method; The relevant documents were sampled and checked to verify the contract costs incurred, and the cut-off test was carried out; Recalculate the percentage of completion based on the cost incurred and the estimated total contract cost;
(II) impairment of accounts receivable and contract assets
See notes III (13) and III (17) to the financial statements, notes V (IV) "accounts receivable" and V (IX) "contract assets" for relevant information disclosure.
1. Item description
Due to the high book value of receivables and contract assets, which has a significant impact on the financial statements, the provision for bad debt reserves involves the professional judgment of the management. We determine the provision for bad debt reserves of receivables as a key audit event.
2. Audit response
(1) Understand the changes of industrial policies and environment, and evaluate whether the changes of accounts receivable of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company are reasonable.
(2) Analyze the rationality of accounting estimation of bad debt provision for accounts receivable, including the basis for determining the combination of accounts receivable, judgment of significant amount, judgment of separate provision for bad debt provision, etc.
(3) By analyzing the aging of accounts receivable and customer reputation of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company, and implementing the accounts receivable confirmation procedure and the collection after the inspection period, evaluate the rationality of the provision for bad debts of accounts receivable.
(4) Obtain the bad debt provision accrual table of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company and check whether the accrual method is implemented in accordance with the bad debt policy; Recalculate whether the amount of bad debt provision is accurate.
4、 Other information
The management of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 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
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 going concern ability of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company, terminate operation or have no other realistic choice.
Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) corporate governance (hereinafter referred to as governance) is responsible for supervising the financial reporting process of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) company.
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. The risk of fraud, collusion or failure to control may be higher than that caused by the discovery of material misstatement or fraud.
（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 Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 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 Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 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 for the financial information of entities or business activities in Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 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 (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.
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Zhonghui Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner)
Hangzhou, China Certified Public Accountant:
Report date: February 26, 2022
Consolidated balance sheet
December 31, 2021
Huihe form 01-1 prepared by: Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) amount unit: RMB
Project note No. Line No.: December 31, 2021 December 31, 2020
Current assets:
Monetary capital V (I) 1861206424215757930652
Trading financial assets V (II) 2
