Dalian Demaishi Precision Technology Co.Ltd(301007)
audit report
Dhsz [2022] No. 001585
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Dalian Demaishi Precision Technology Co.Ltd(301007)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page 1. Audit report 1-6 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3 consolidated cash flow statement 4 consolidated statement of changes in shareholders' equity 5-6 parent company balance sheet 7-8 parent company income statement 9 cash flow statement of parent company 10 statement of changes in shareholders' equity of parent company 11-12 notes to financial statements 1-75
Dahua Certified Public Accountants (special general partnership) 12 / F, building 7, yard 16, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa. com. Audit report
Dahuashen Zi [2022] No. 001585 Dalian Demaishi Precision Technology Co.Ltd(301007) all shareholders:
1、 Audit opinion
We have audited the financial statements of Dalian Demaishi Precision Technology Co.Ltd(301007) (hereinafter referred to as Dalian Demaishi Precision Technology Co.Ltd(301007) ), 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 shareholders' equity and relevant 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 financial position of Dalian Demaishi Precision Technology Co.Ltd(301007) the consolidated and parent company as of December 31, 2021 and the operating results and cash flow of the consolidated and parent company 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 Dalian Demaishi Precision Technology Co.Ltd(301007) , 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 consider to be the audit of 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.
We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
1. Recognition of operating income;
2. Impairment of accounts receivable.
（1） Recognition of operating income
1. Event description
Dalian Demaishi Precision Technology Co.Ltd(301007) please refer to note 4 (XXIX) and note 6 (note 32) of the consolidated financial statements for the accounting policies and carrying amount information related to the recognition of operating revenue.
Dalian Demaishi Precision Technology Co.Ltd(301007) in 2021, the operating income was 51215199731 yuan. Operating income is a key financial indicator. Transactions occur frequently throughout the year, involving many customers, and the inherent risk of misstatement is high. The revenue recognition time points of different sales models are different. Whether it is included in the appropriate accounting period may have potential misstatement. Therefore, we regard the recognition of operating income as a key audit matter.
2. Audit response
Our important audit procedures for the recognition of operating revenue include:
(1) We understand the revenue recognition policy through interviews with the management, obtain the purchase and sales contracts signed by Dalian Demaishi Precision Technology Co.Ltd(301007) and important customers, check the delivery methods and key terms such as transfer of goods rights, quantity confirmation and quality inspection, contract price and payment settlement, and analyze and evaluate whether the actually implemented revenue recognition policy is appropriate, Review whether relevant accounting policies are consistently applied;
(2) Understand, evaluate and test the effectiveness of internal control related to revenue recognition; (3) Select samples from the revenue records to conduct sampling test, check whether the supporting documents are complete, and check the sales contract, order, sales invoice, logistics document, customer receipt, customs declaration, freight bill of lading, statement of account, bill of lading, etc;
(4) Analyze the operating income and gross profit in combination with the type of income to judge whether there is abnormal fluctuation in the amount of income;
(5) Select samples to confirm the amount of operating revenue and the balance of accounts receivable; (6) For foreign sales, compare and analyze the direct export income with the data of the customs platform to check the authenticity of the export income;
(7) Conduct a cut-off test before and after the balance sheet date, and pay attention to whether there are significant intertemporal situations.
(8) According to the audit work performed, we believe that the recognition of operating income is in line with the accounting policies of Dalian Demaishi Precision Technology Co.Ltd(301007) .
（2） Impairment of accounts receivable
1. Event description
Dalian Demaishi Precision Technology Co.Ltd(301007) please refer to note 4 (Xi, XIII) and note 3 of note 6 to the consolidated financial statements for the accounting policies and carrying amount information related to the expected credit loss of accounts receivable.
As of December 31, 2021, the book value of Dalian Demaishi Precision Technology Co.Ltd(301007) accounts receivable was 13263302071 yuan, accounting for 16.19% of the total assets at the end of the year.
Dalian Demaishi Precision Technology Co.Ltd(301007) when estimating whether there is impairment of accounts receivable, the aging of accounts receivable, the repayment record of the debtor and the current situation of the debtor's industry are usually considered comprehensively, which will involve a lot of assumptions and subjective judgments. Based on the significant book value of accounts receivable and the inherent uncertainty of relevant estimates, we believe that this is a key audit event.
2. Audit response
Our important audit procedures for the impairment of accounts receivable include:
(1) Evaluate and test the internal control related to the aging analysis of accounts receivable and determining the expected credit loss of accounts receivable;
(2) For accounts receivable with bad debt provision withdrawn by aging analysis method, analyze the rationality of accounting estimation of bad debt provision of accounts receivable, and select samples to test the aging accuracy; (3) For accounts receivable with separate provision for bad debts, select samples to obtain the basis for the management to estimate the expected future recoverable amount, including the basis for future collection, customer's credit history, operation and repayment ability, and review its rationality.
Based on the audit work performed, we believe that the recognition of the impairment of accounts receivable by the management is reasonable.
4、 Other information
The management is responsible for other information. Other information includes the information covered in Dalian Demaishi Precision Technology Co.Ltd(301007) 2021 annual report, but does not include the financial statements and our audit report Dalian Demaishi Precision Technology Co.Ltd(301007) 2021 annual report is expected to be provided to us after the audit report date.
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 understand in the audit process, or there seems to be material misstatement.
5、 Responsibilities of management and governance for financial statements
Dalian Demaishi Precision Technology Co.Ltd(301007) 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, Dalian Demaishi Precision Technology Co.Ltd(301007) management is responsible for assessing Dalian Demaishi Precision Technology Co.Ltd(301007) 's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless the management plans to liquidate Dalian Demaishi Precision Technology Co.Ltd(301007) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Dalian Demaishi Precision Technology Co.Ltd(301007) .
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 in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
3. Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
4. Draw a conclusion on the appropriateness of the going concern assumption used by the management. 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 Dalian Demaishi Precision Technology Co.Ltd(301007) going concern ability. If we conclude that there are significant uncertainties, the auditing standards require us to draw the attention of report 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 Dalian Demaishi Precision Technology Co.Ltd(301007) 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 on the financial information of entities or business activities in Dalian Demaishi Precision Technology Co.Ltd(301007) to express an opinion on the financial statements. We are responsible for guiding, supervising and executing the group audit. We are fully responsible for the audit opinion.
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.
Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner) Chen Jing, Beijing, China Certified Public Accountant:
Meng Qi notes to the financial statements of Dalian Demaishi Precision Technology Co.Ltd(301007) 2021 year on March 15, 2002
Dalian Dalian Demaishi Precision Technology Co.Ltd(301007) Precision Technology Co., Ltd
