Cloud Live Technology Group Co.Ltd(002306) 2021 annual financial report I. audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 17, 2022
Name of audit institution: Lixin Zhonglian Certified Public Accountants (special general partnership)
Audit Report No.: Lixin Zhonglian Shen Zi [2022] d-0145
Name of certified public accountant: Dong song, he Xiaoxia
Body of audit report
audit report
Lixin Zhonglian Shen Zi [2022] d-0145 Cloud Live Technology Group Co.Ltd(002306) all shareholders:
1、 Audit opinion
We have audited the financial statements of Cloud Live Technology Group Co.Ltd(002306) (hereinafter referred to as " Cloud Live Technology Group Co.Ltd(002306) "), 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 relevant 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 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、 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 Cloud Live Technology Group Co.Ltd(002306) , 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.
Key audit matters how to deal with them in the audit
(I) recognition of income
Cloud Live Technology Group Co.Ltd(002306) revenue mainly includes: revenue recognition of Internet games. The audit procedures we perform are as follows: revenue from promotion and operation business, revenue from group meal business, etc. (1) Understand and evaluate the management's internal control revenue recognition policies related to revenue recognition. For details, see note III to the financial report (second system design and operation effectiveness; we review the sales contract and management 17) revenue. As shown in the attached financial statements, the management interviewed and evaluated the revenue recognition policy of Cloud Live Technology Group Co.Ltd(002306) and the amount of operating revenue recognized by Cloud Live Technology Group Co.Ltd(002306) in 2021;
It was 3171721 million yuan, an increase over the same period of last year. (2) analysis procedures were implemented for income and cost, including 16.59% in each month of the current period. As there are many types of revenue of the company and the fluctuation analysis of accurate revenue, cost and gross profit, the revenue and recognition of main products in the current period are relatively complex. The revenue recognition requires the management to make analysis procedures such as heavy cost, gross profit margin and comparison analysis with the previous period; Therefore, we recognized the revenue recognition (3.1) group meal business, and we spot checked the important items related to sales as key audit matters. Evaluate the authenticity and accuracy of revenue recognition with the same documents, settlement sheets, card machine sales details, sales invoices, sales receipts and other materials;
(3.2) income from Internet game promotion and operation business; See note III (XXVII) income of the financial report for details. Perform it audit on the income of Internet game promotion and operation business. Test whether the background recharge data of some games are consistent with the financial information; Test the match between the average number of online games, the number of paid people and other indicators and income; Conduct analytical review. Check the sales collection, check the third-party payment collection amount or bank receipt, and pay attention to whether the receipt unit and amount are consistent with the book records.
(4) We have confirmed the amount of sales revenue and the balance of accounts receivable to important customers by letter;
(5) For possible integrity risks, we have implemented targeted audit procedures, including but not limited to after increasing income
On the basis of the integrity test sample, perform the cut-off test for the sales revenue recognized before and after the balance sheet date, and check the relevant time nodes from the delivery of inventory to the revenue recognition document, so as to evaluate whether the sales revenue is recognized in an appropriate period and whether there is a cut-off problem.
Based on the audit work performed, we believe that the recognition and measurement of revenue by the management is acceptable.
(II) investment income recognized from disposal of equity of subsidiaries
Cloud Live Technology Group Co.Ltd(002306) 2021 disposed of the investment income recognized by Beijing for the disposal of the equity of the subsidiary respectively. We hold meimai Technology Co., Ltd. (hereinafter referred to as "meimai technology") and Beijing Yunshan Eastern Pioneer Driving School Co.Ltd(603377) Hotel Management Co., Ltd. (1) check the industrial and commercial change time of the disposed subsidiary, Determine the equity of the two subsidiaries Cloud Live Technology Group Co.Ltd(002306) of the company (hereinafter referred to as "Beijing Yunshan") that lose control of meimai technology and Beijing Yunshan, and confirm the corresponding investment income. Effective date. Asset income has a great impact on the total Cloud Live Technology Group Co.Ltd(002306) profit, because (2) we verified the specific situation of the transaction by examining the agreements, contracts and documents related to the transaction. Through inspection, Cloud Live Technology Group Co.Ltd(002306) Xiangyi was identified as a key audit item. The bank receipt confirmed the consideration received by Cloud Live Technology Group Co.Ltd(002306) due to the loss of control of meimai technology and Beijing Yunshan.
(3) The investment income generated by Cloud Live Technology Group Co.Ltd(002306) disposing the equity of subsidiaries was recalculated and checked with the calculation of the management.
Based on the work performed, we believe that the investment income recognized by Cloud Live Technology Group Co.Ltd(002306) disposing the equity of the subsidiary is recognized and acceptable.
4、 Other information
Cloud Live Technology Group Co.Ltd(002306) Management (hereinafter referred to as "management") is responsible for other information. Other information includes the information contained in the relevant documents constituting the 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.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Cloud Live Technology Group Co.Ltd(002306) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Cloud Live Technology Group Co.Ltd(002306) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Cloud Live Technology Group Co.Ltd(002306) .
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 Cloud Live Technology Group Co.Ltd(002306) 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 Cloud Live Technology Group Co.Ltd(002306) unable to continue its business.
(5) Evaluate the overall presentation, structure and content (including disclosure) 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 Cloud Live Technology Group Co.Ltd(002306) entity or business activities 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.
Lixin Zhonglian Certified Public Accountants (special general partnership) Chinese certified public accountant: Dongsong
(project partner)
