Sichuan Jiuyuan Yinhai Software Co.Ltd(002777)
Financial report for 2021
March 2022
financial reports
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 11, 2022
Name of audit institution: Lixin Certified Public Accountants (special general partnership)
Name of certified public accountant: Yang Zhiping, Yu Hua
Body of audit report
Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) all shareholders:
1. Audit opinion
We have audited the financial statements of Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) (hereinafter referred to as Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) ), 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 relevant 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 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 Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) , 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) provision for bad debts of contract assets and accounts receivable
We implement the provision for bad debts of contract assets and accounts receivable
The main audit procedures include:
As of December 31, 2021, Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) contract assets and receivables (1) understand, evaluate and test the bad debts of contract assets and receivables
The ending balance of accounts receivable is 26.886 million yuan and 4993387 million yuan respectively, and the effectiveness of key internal control design and operation related to preparation; (2) analyze the provision for bad debts of contract assets and accounts receivable of the company
The recognition standard and rationality of the bad debt provision of contract assets and accounts receivable, including the basis for determining the combination of accounts receivable and the amount withdrawal method, are described in note III (VIII) to the consolidated financial statements. Due to significant judgment, judgment of separate withdrawal of bad debt provision, etc; The company uses the accounting method of the contract to estimate the amount of the provision for bad debts, and the management determines whether the provision for bad debts of the contract involves the provision for bad debts of the company, and whether the provision for bad debts of the contract is implemented according to the accounting policy of the company, We identify the impairment provision of contract assets and accounts receivable as the key review and recalculate the amount of bad debt provision;
Count items. (4) Check the company’s post payment collection and evaluate the management’s assessment of bad debt reserves
Rationality of provision;
(5) Implement the confirmation procedure.
(II) recognition of income
Our main audit procedures for revenue recognition include:
In 2021 Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) achieved operating revenue of 13059072 (1) understand, evaluate and test the key issues related to the new revenue standard
The main business income mainly includes software development, operation and maintenance services, and the effectiveness of control design and operation of the Department; System integration. For the revenue recognition policy, see note (2) to the consolidated financial statements to obtain the main contracts signed between the company and customers, and check the contract. As revenue is the key performance indicator clause of Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) key performance, evaluate whether the revenue recognition is appropriate, whether it meets one of the new revenue targets, and identify the performance obligations in the contract under the new revenue standard, Guidelines; Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) make a major judgment on the way to judge the revenue recognition. Failure to (3) select samples and check the contracts, orders and appropriate judgment related to the business may lead to major misstatement in the revenue recognition. Therefore, our shipping order, acceptance report and other documents determine the accuracy of the company’s revenue recognition
We regard the recognition of revenue as a key audit matter. Accuracy and whether it is included in the correct accounting period;
(4) Implement the letter confirmation procedure for important contracts, and verify the contract amount and actual amount
Construction status, settlement amount and other information.
4. Other information
Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) 2021, 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 assessing the going concern ability of Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) the company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The management is responsible for supervising the financial reporting process of Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) .
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:
(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 Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) 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 Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) unable to continue operation.
(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 Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) 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 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.
China certified public accountant of Lixin certified public accountants: Yang Zhiping (project partner)
(special general partnership)
Chinese certified public accountant: Yu Hua
Shanghai, China March 11, 2022
2、 The unit of the statement in the notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Sichuan Jiuyuan Yinhai Software Co.Ltd(002777)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 6998412535772997849914
Provision for settlement
Lending funds
Trading financial assets 30439527397
Derivative financial assets
Notes receivable 34 Jiangsu Zhongtian Technology Co.Ltd(600522) 4107798500
Accounts receivable 4174365764233652584616
Receivables financing
Prepayment 145562156610131
