Cngr Advanced Material Co.Ltd(300919)
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: Tianzhi International Certified Public Accountants (special general partnership)
Audit Report No.: tzyz [2022] No. 20
Name of CPA: Liu Chunwei, Zeng Zhigui
Body of audit report
Tian Zhi Ye Zi [2022] No. 20 Cngr Advanced Material Co.Ltd(300919) all shareholders:
1、 Audit opinion
We have audited the financial statements of Cngr Advanced Material Co.Ltd(300919) (hereinafter referred to as ” Cngr Advanced Material Co.Ltd(300919) ” or “the company”), including the consolidated balance sheet and balance sheet as of December 31, 2021, the consolidated income statement and income statement, the consolidated cash flow statement and cash flow statement, the consolidated statement of changes in owner’s equity and the statement of changes in owner’s equity of 2021, and the notes to relevant financial statements.
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 financial position and financial position of Cngr Advanced Material Co.Ltd(300919) 2021 as of December 31, 2021, the consolidated operating results and consolidated cash flow, operating results and cash flow of 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 Cngr Advanced Material Co.Ltd(300919) , 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.
Key audit matters how to deal with them in the audit
Recognition of operating income
Cngr Advanced Material Co.Ltd(300919) operating revenue mainly comes from lithium cathode precursor materials. For the recognition of operating revenue, we have mainly implemented the following audit procedures:
For the processing and sales of materials, the amount of operating revenue in 2021 is 1. Understand, evaluate and test the key internal control related to the recognition of operating revenue
200724913 million yuan, an increase of 169.81% over the previous period. Effectiveness of control point design and operation;
2. Sign the contract with the customer according to the main business or service mode, and obtain the identification right of the customer according to the main business contract
It should be divided into self operation and processing. Self operation includes domestic sales and export. Evaluate whether the company’s revenue recognition policy is in line with enterprise accounting according to the relevant terms at different time points of the company
The revenue recognition policies under the business model are as follows: under the domestic sales model, the relevant provisions of the company’s standards;
Deliver the goods to the place designated by the customer, and after the customer checks and signs the goods, the customer 3. Implement substantive analysis procedures, such as the current period and the previous period under the self operated business mode
Sign on the delivery note (logistics document) for confirmation, and the company will add according to the analysis of the growth and change of operating revenue, the analysis of gross profit margin and the turnover rate of accounts receivable signed by the customer
The confirmed delivery note (logistics document) confirms the revenue; Under the export mode, the gross profit margin of products and customers under the corporate business mode is analyzed to evaluate the increase of income
The company will ship the goods to the port and declare for export. The company is generally reasonable after obtaining the bill of lading;
Revenue recognized after; In the processing mode, after obtaining the signature and confirmation of the customer, send 4. Domestic sales revenue, and sample check the supporting documents related to revenue recognition,
Revenue is recognized after the receipt (logistics document). Including sales contracts or orders, delivery orders, and delivery orders (logistics documents) signed by customers
Cngr Advanced Material Co.Ltd(300919) 2021: large increase in operating revenue, whether the revenue is based or not; For export revenue, obtain E-port Information and check with book records,
Whether the real transaction and income are included in the appropriate accounting period, and check the sales contract, export declaration form, freight bill of lading, etc; Opposite addition
Due to the inherent risk of misstatement, we regard the recognition of operating income as the key audit income, and obtain and spot check the delivery note (logistics note) signed and confirmed by the customer.
Count items. 5. Spot check the sales revenue recognized before and after the balance sheet date
See note III (XXXIII) of the financial statements for relevant information disclosure, delivery note (logistics note), bill of lading and other supporting documents signed by the customer to check the receipt
Note VI. (41). Whether it is included in the appropriate accounting period;
6. Inquire and verify the transaction amount of main customers in combination with the audit of accounts receivable,
To check the authenticity and accuracy of revenue recognition of major customers.
4、 Other information
Cngr Advanced Material Co.Ltd(300919) Management (hereinafter referred to as “management”) is responsible for other information.
Other information includes the information covered in the annual report of Cngr Advanced Material Co.Ltd(300919) 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 evaluating the going concern ability of Cngr Advanced Material Co.Ltd(300919) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Cngr Advanced Material Co.Ltd(300919) , terminate the operation or have no other realistic options.
The management is responsible for supervising the financial reporting process of Cngr Advanced Material Co.Ltd(300919) .
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 Cngr Advanced Material Co.Ltd(300919) 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 Cngr Advanced Material Co.Ltd(300919) 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 Cngr Advanced Material Co.Ltd(300919) 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 protective 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 under the audit report are reasonably expected to exceed the benefits in the public interest, we determine that the matter should not be communicated in the audit report. 2、 The unit of the statement in the notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Cngr Advanced Material Co.Ltd(300919)
March 14, 2022
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 869933547444271188915817
Provision for settlement
Lending funds
Trading financial assets 22479577
Derivative financial assets
Notes receivable 27727711862
Accounts receivable 445179853133123055904287
Receivables financing 5681211318574888870517
Prepayment 2825552175112750161960
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 851845
