Guangdong Dongfang Precision Science & Technology Co.Ltd(002611)
Annual financial report for 2021
March 2022
financial reports
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 14, 2022
Name of audit institution: Ernst & Young Huaming Certified Public Accountants (special general partnership)
Audit Report No.: Ernst & Young Huaming (2022) SZ No. 61276890g01
Name of certified public accountant Feng Xing to Lin Hongyan
Body of audit report
audit report
Ernst & Young Huaming (2022) Shen Zi No. 61276890g01 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) all shareholders:
1、 Audit opinion
We have audited the financial statements of Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) , including the consolidated and company's balance sheet as of December 31, 2021, the consolidated and company's income statement, statement of changes in shareholders' equity, cash flow statement and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements of Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) are prepared in accordance with the accounting standards for business enterprises in all major aspects and fairly reflect the consolidated and company's financial position as of December 31, 2021 and the consolidated and 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 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) , 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. Our description of how to deal with each of the following matters in the audit is also against this background.
We have fulfilled the responsibilities described in the "responsibilities of certified public accountants for the audit of financial statements" section of this report, including those related to these key audit matters. Accordingly, our audit work includes the implementation of audit procedures designed to deal with the risk of material misstatement of the assessed financial statements. The results of our audit procedures, including the procedures for the following key audit matters, provide a basis for our overall audit opinion on the financial statements.
Key audit matters: how to deal with this matter in the audit:
Goodwill impairment
As of December 31, 2021, for the goodwill recognized in the consolidated financial statements, our procedures for goodwill impairment include:
The book balance is 43220741682 yuan. Goodwill minus (1) the recognition of the asset group by the group's management and
The reserve value is 12523826906 yuan. Goodwill allocated by the asset group;
(2) Obtain the securities and futures related businesses hired by the management
At the end of each year, the management of the group will reduce the goodwill, and the qualified independent third-party asset evaluation institution will test the impairment value of goodwill. The report of goodwill impairment test and evaluation based on the relevant information including goodwill;
Based on the recoverable amount of the asset group, the recoverable amount of the asset group (3) evaluate the recoverable amount of the asset group predicted by the group management
The amount is determined according to the major assumptions used in the present value of the expected future cash flow of the asset group and the rationality of the evaluation method. In the goodwill impairment test, the prediction of future cash flow includes discount rate and long-term growth rate;
The measurement involves major judgments and estimates, including sales growth rate, gross (4) evaluation, expected sales revenue in the coming years and operating expenses
Interest rate and discount rate, etc. Due to the large book value of goodwill, the performance shall be compared with its historical operating performance; as well as
The impact of the financial statements is significant. We recognize the impairment of goodwill as a key audit matter related to (5) checking the relevant disclosure of the group in the notes to the financial statements. Sex.
The accounting policies and disclosures of goodwill in the financial statements are set out in the financial statements
Notes V, 19, V, 31 and VII, 19 of the statement.
4、 Other information
Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) management is responsible for other information. Other information includes the information covered in the 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 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) the company, disclosing the 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 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) .
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 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 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) 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 Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) unable to continue its business.
(5) 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
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) to express an audit opinion 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.
Ernst & Young Huaming Certified Public Accountants (special general partnership)
Chinese certified public accountant: Feng Xingzhi
(project partner)
Certified public accountant: Lin Hongyan
Beijing, China March 14, 2022
2、 The unit of the statement in the financial notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Guangdong Dongfang Precision Science & Technology Co.Ltd(002611)
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 16643363393588571105388
Provision for settlement
Lending funds
Trading financial assets 78818552157163629643031
Derivative financial assets
Notes receivable 13272025041274458288
Accounts receivable 7411356480946963542358
Receivables financing 30692449255673797804
Prepayment 3417780236
