Shenzhen Sinovatio Technology Co.Ltd(002912)
Notes to the financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company (I) overview of the company
Shenzhen Sinovatio Technology Co.Ltd(002912) (hereinafter referred to as the company or the company) was formerly Shenzhen Zhongxin SECCO Technology Co., Ltd. (hereinafter referred to as Shenzhen Sinovatio Technology Co.Ltd(002912) Co., Ltd.), Shenzhen Sinovatio Technology Co.Ltd(002912) Co., Ltd., formerly known as Shenzhen ZTE special equipment Co., Ltd., was composed of Zte Corporation(000063) , Shenzhen jincen Industrial Co., Ltd., Wang Honghai, Zhu Hongjun, Ling Dongsheng, Zhang Yunlong Ma Hongbing and Liu Qingliang jointly funded the establishment and registered with Shenzhen Administration for Industry and Commerce on February 8, 2003. The headquarters is located in Shenzhen, Guangdong Province. The company now holds a business license with a unified social credit code of 91440 Hanjia Design Group Co.Ltd(300746) 615781r, with a registered capital of 17507168000 yuan and a total of 175071680 shares (par value of 1 yuan per share). Among them, the tradable shares with limited sales conditions: 58368384 A shares; Tradable shares with unlimited sales conditions: 116703296 A shares. The company's shares were listed and traded on Shenzhen Stock Exchange on November 21, 2017. The company belongs to the software and information technology service industry. Its main business is the R & D, production and sales of network visualization infrastructure, network content security, big data operation products and other products, as well as technical services such as installation, commissioning and training of related products. The company's main products include broadband Internet data aggregation and distribution management products, mobile access network data collection and analysis products, network content security products and big data operation products. The parent company of the company is Shenzhen Innovation Investment Group Co., Ltd. and the ultimate controller of the company is the state owned assets supervision and Administration Commission of Shenzhen Municipal People's government.
The financial statements were approved by the board of directors of the company on March 15, 2022.
（2） Scope of consolidated financial statements
See "VII. Equity in other entities" in this note for relevant information of the company's subsidiaries.
See "VI. change of consolidation scope" in this note for the change of consolidation scope during the reporting period.
2、 Preparation basis of financial statements (I) preparation basis
The financial statements are prepared in accordance with the accounting standards for business enterprises - basic standards, various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance (hereinafter collectively referred to as "accounting standards for business enterprises"), And the relevant provisions of the rules for the preparation of information disclosure of companies offering securities to the public No. 15 - General Provisions on financial reports issued by the China Securities Regulatory Commission.
（2） Going concern
The financial statements are prepared on the basis of going concern.
3、 Important accounting policies and accounting estimates
The following disclosure has covered the specific accounting policies and accounting estimates formulated by the company according to the actual production and operation characteristics. See "III. (XXVI) income" in this note for details.
（1） Statement of compliance with accounting standards for business enterprises
The financial statements comply with the requirements of the accounting standards for business enterprises issued by the Ministry of finance, and truly and completely 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） Accounting period
The fiscal year is from January 1 to December 31 of the Gregorian calendar.
（3） Business cycle
The business cycle of the company is 12 months.
（4） Recording currency
The company adopts RMB as the bookkeeping base currency.
（5） Accounting treatment methods for business combinations under the same control and not under the same control
Business combination under the same control: the assets and liabilities acquired by the combining party in the business combination (including the goodwill formed by the final controller's acquisition of the combined party) are measured on the basis of the book value of the combined party's assets and liabilities in the final controller's consolidated financial statements on the combination date. For the difference between the book value of the net assets obtained in the merger and the book value of the merger consideration paid (or the total face value of the issued shares), the capital stock premium in the capital reserve shall be adjusted. If the capital stock premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
Business combination not under the same control: the combination cost refers to the fair value of assets paid, liabilities incurred or assumed and equity securities issued by the acquirer to obtain the control of the acquiree on the acquisition date. The difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination is recognized as goodwill; The difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination shall be included in the current profits and losses. All identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the merger that meet the recognition conditions shall be measured at fair value on the acquisition date.
The directly related expenses incurred for business combination shall be included in the current profit and loss when incurred; The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities. （6） Preparation method of consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined on the basis of control. The consolidation scope includes the company and all subsidiaries. Control means that the company has the power over the investee, enjoys variable returns through participating in relevant activities of the investee, and is able to use the power over the investee to affect its return amount.
2. Merger procedure
The company regards the whole enterprise group as an accounting entity and prepares consolidated financial statements in accordance with unified accounting policies to reflect the overall financial status, operating results and cash flow of the enterprise group. The impact of internal transactions between the company and its subsidiaries and between subsidiaries shall be offset. If the internal transaction indicates the impairment loss of relevant assets, the loss shall be recognized in full. If the accounting policies and accounting periods adopted by subsidiaries are inconsistent with those of the company, necessary adjustments shall be made according to the accounting policies and accounting periods of the company when preparing the consolidated financial statements.
The shares belonging to minority shareholders in the owner's equity, current net profit and loss and current comprehensive income of subsidiaries are separately listed under the owner's equity item in the consolidated balance sheet, the net profit item and the total comprehensive income item in the consolidated income statement. If the current loss shared by the minority shareholders of a subsidiary exceeds the share of the minority shareholders in the owner's equity of the subsidiary at the beginning of the period, the balance shall be offset against the minority shareholders' equity. (1) Increase subsidiaries or businesses
During the reporting period, if subsidiaries or businesses are added due to business combination under the same control, the operating results and cash flows of subsidiaries or businesses from the beginning of the current period to the end of the reporting period shall be included in the consolidated financial statements, and the opening balance of the consolidated financial statements and relevant items of the comparative statements shall be adjusted, The report subject after deemed merger has existed since the time point when the final controller began to control.
If the investee under the same control can be controlled due to additional investment and other reasons, the equity investment held before obtaining the control of the combined party has recognized the relevant profits and losses from the later of the date of obtaining the original equity and the date when the combined party and the combined party are under the same control to the date of combination Other comprehensive income and other changes in net assets offset the beginning retained earnings or current profit and loss during the comparative statement period respectively.
During the reporting period, if subsidiaries or businesses are increased due to business combinations not under the same control, they shall be included in the consolidated financial statements on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
If the investee not under the same control can be controlled due to additional investment and other reasons, the equity of the acquiree held before the acquisition date shall be re measured according to the fair value of the equity on the acquisition date, and the difference between the fair value and its book value shall be included in the current investment income. Other comprehensive income related to the equity of the acquiree held before the acquisition date that can be reclassified into profit and loss in the future and other changes in owner's equity accounted by the equity method are transferred to the current investment income on the acquisition date.
(2) Disposal of subsidiaries
① General treatment method
When the control over the investee is lost due to the disposal of part of the equity investment or other reasons, the remaining equity investment after disposal shall be re measured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the sum of the share of net assets and goodwill of the original subsidiary continuously calculated from the purchase date or merger date according to the original shareholding ratio shall be included in the investment income of the current period when the control right is lost. When the change of subsidiary's investment and other gains and losses related to the loss of control right are reclassified into other gains and losses of the current period.
② Step by step disposal of subsidiaries
If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the control right is lost, the terms, conditions and economic impact of various transactions for the disposal of equity investment in a subsidiary meet one or more of the following conditions, which usually indicates that the multiple transactions are a package deal:
I. these transactions are concluded at the same time or under the consideration of mutual influence;
II. These transactions as a whole can achieve a complete business result;
III. The occurrence of one transaction depends on the occurrence of at least one other transaction;
IV. a transaction is uneconomic alone, but it is economical when considered together with other transactions. If each transaction is a package deal, it shall be treated as a transaction for disposal of subsidiaries and loss of control; Before the loss of control, the difference between each disposal price and the share of net assets of the subsidiary corresponding to the disposal of investment is recognized as other comprehensive income in the consolidated financial statements and transferred to the profit and loss of the current period when the control is lost.
If each transaction is not a package deal, the equity investment of the subsidiary shall be subject to accounting treatment according to partial disposal without losing the control right before losing the control right; In case of loss of control, accounting treatment shall be carried out according to the general treatment method for disposal of subsidiaries.
(3) Purchase of minority interests in subsidiaries
For the difference between the long-term equity investment newly obtained due to the purchase of minority shares and the share of net assets of the subsidiary continuously calculated from the purchase date or the merger date according to the newly increased shareholding ratio, adjust the capital stock premium in the capital reserve in the consolidated balance sheet. If the capital stock premium in the capital reserve is insufficient to be offset, Adjust retained earnings.
(4) Partial disposal of equity investment in subsidiaries without losing control
For the difference between the disposal price and the share of net assets of the subsidiary continuously calculated from the purchase date or the merger date corresponding to the disposal of long-term equity investment, adjust the capital stock premium in the capital reserve in the consolidated balance sheet. If the capital stock premium in the capital reserve is insufficient to be offset, adjust the retained earnings.
（7） Classification of joint venture arrangement and accounting treatment method of joint operation
Joint venture arrangements are divided into joint ventures and joint ventures.
Joint operation refers to the joint arrangement in which the joint venture party enjoys the relevant assets of the arrangement and bears the relevant liabilities of the arrangement.
The company confirms the following items related to the share of interests in joint operation:
(1) Confirm the assets held separately by the company and the assets jointly held according to the share of the company;
(2) Confirm the liabilities undertaken by the company alone and the liabilities jointly undertaken according to the share of the company;
(3) Recognize the income generated from the sale of the share of joint operation output enjoyed by the company;
(4) Recognize the income generated from the sale of output in the joint operation according to the share of the company;
(5) Confirm the expenses incurred separately and the expenses incurred in joint operation according to the share of the company.
The company's investment in joint ventures is accounted with the equity method. See "III. (XIV) long term equity investment" in this note for details
