Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd
Financial report of 2021
March 2022
Section x financial report
1、 Audit report
Unqualified opinion of audit opinion type standard
Signature date of audit report: March 15, 2022
Name of audit institution: Daxin Certified Public Accountants (special general partnership)
Audit Report No.: dxsz [2022] No. 700009
Name of certified public accountant: Wang Shuqi, Li Nan
Body of audit report
Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd. all shareholders:
1、 Audit opinion
We have audited the financial statements of Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd. (hereinafter referred to as “your company”), 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 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 your company as of December 31, 2021 and the operating results and cash flows of your company and the 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 your company 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.
(I) revenue recognition of pharmaceutical industry
1. Event description
As stated in note VII (43) and note XVI (6) of the financial statements, your company realized an operating revenue of 107467173 million yuan in 2021, including 100463741 million yuan from the pharmaceutical industry, accounting for 93.48% of the operating revenue. In 2020, the operating revenue was 85766007 million yuan, and the operating revenue of this period increased by 21701166 million yuan compared with that of the previous period, mainly due to the increase in the revenue of the pharmaceutical industry. Due to the importance of pharmaceutical industry income to your company and its great impact on your company’s profits, affecting key business indicators, the inherent risk of misstatement is high. Therefore, we recognize the revenue recognition of your pharmaceutical industry as a key audit matter.
2. Audit response
Our main audit procedures for the above key audit matters related to the revenue recognition of the pharmaceutical industry are as follows:
(1) Test and evaluate the key internal control related to the revenue recognition of the pharmaceutical industry, and confirm the effectiveness of the relevant internal control design and operation;
(2) Check the sales contract, identify the contract terms and conditions related to the transfer of commodity control, and evaluate whether the revenue recognition time point of the company meets the requirements of the accounting standards for business enterprises;
(3) Select a sample to check the supporting vouchers such as sales contract or order, sales invoice, delivery order, signature receipt and bank receipt related to revenue recognition;
(4) Implement analytical procedures, analyze the income in combination with product types, and judge whether there are abnormal fluctuations in the type of products sold and the selling price in the current period; Analyze the difference between the overall gross profit margin of the current period and the gross profit margin of the previous period;
(5) Implement letter confirmation procedures to important customers, inquire about the sales amount and current account balance in the current period, and interview some major customers to confirm the authenticity and integrity of sales revenue;
(6) Conduct a cut-off test on income transactions recorded before and after the balance sheet date to check whether there is cross period income.
(II) confirmation of sales expenses
1. Event description
As stated in note V (45) of the financial statements, the sales expense in 2021 was 3064033800 yuan, an increase of 4816400 yuan over 2582393800 yuan in 2020, a year-on-year increase of 18.65%. The sales expenses in 2021 accounted for 28.51% of the current operating revenue. As the sales expenses have a great impact on the total profit and the company’s expenses, there may be a major risk of misstatement. Therefore, the sales expenses of your company are recognized as key audit matters in this period.
2. Audit response
Our main audit procedures for the above key audit matters related to the confirmation of sales expenses are as follows:
(1) Calculate and analyze the ratio of the total sales expenses and the amount of main items to the main business income, and compare it with the previous year to judge the rationality of the change; (2) Select important or abnormal sales expenses, check whether the expenditure standards of each item of sales expenses comply with the company’s regulations, whether the expenditure content is true and reasonable, whether there is relevant evidence chain to support the authenticity and rationality of expenses, whether the original vouchers are legal and whether the accounting treatment is correct;
(3) Consult the enterprise’s sales commission accrual policy, calculate the accrued Commission in the current period according to the details of goods sold in the current period, and check whether the calculated amount is consistent with the enterprise’s accrued amount;
(4) Check the product marketing service cooperation agreement of the promoter, and check the supporting documents for the content items of the agreement;
(5) Carry out the cut-off test of sales expenses, spot check the vouchers of large expenses before and after the balance sheet date, and check whether the expenses are intertemporal.
4、 Other information
The management of your company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in your 2021 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.
In preparing the financial statements, the management is responsible for assessing the company’s ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate the company, terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of your company.
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 to design appropriate audit procedures.
(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 the sustainable operation ability of your company. 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 your company to be unable to continue its business.
(V) evaluate the overall presentation, 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 your company to express audit opinions 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 statements to the management on compliance with the professional ethics requirements related to independence, and communicate with the management on 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. 2、 The unit of the statement in the notes to the financial statements is: yuan 1. The preparation unit of the consolidated balance sheet is Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 574912271790396466521723
Provision for settlement
Lending funds
Trading financial assets 1028168767
Derivative financial assets
Notes receivable 147588579015690700477
Accounts receivable 142106245988135483298646
Receivables financing
Prepayment 9671159823185470855109
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 126900705132155034234219
Interest receivable: including
Dividends receivable 465664677
Purchase of resale financial assets
Inventory 43 Cred Holding Co.Ltd(600890) 8139301258193645
Contract assets
Assets held for sale
