Changying Xinzhi Technology Co.Ltd(002664)
Annual financial report for 2021
March 2022
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 16, 2022
Name of audit institution: Dahua Certified Public Accountants (special general partnership)
Audit Report No. [2022] 004878
Name of certified public accountant: Tang Juan, Jiang Xiaoyun
Body of audit report
Changying Xinzhi Technology Co.Ltd(002664) all shareholders: audit opinion
We have audited the financial statements of Changying Xinzhi Technology Co.Ltd(002664) (hereinafter referred to as Changying Xinzhi Technology Co.Ltd(002664) 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 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 of Changying Xinzhi Technology Co.Ltd(002664) company as of December 31, 2021 and the consolidated and parent company's operating results and cash flow in 2021. 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 Changying Xinzhi Technology Co.Ltd(002664) 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. 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.
We confirm that the following matters are the key audit matters that need to be communicated in the audit report. Revenue recognition
Revenue recognition.
Item description
Changying Xinzhi Technology Co.Ltd(002664) company's main business includes the production and sales of auto parts, electric vehicle parts, ice press parts and other motor parts. As stated in note VI and note 33 of the consolidated financial statements of Changying credit quality company, Changying Xinzhi Technology Co.Ltd(002664) company achieved a sales revenue of 33556374 million yuan in 2021. As operating revenue is one of the key performance indicators of Changying Xinzhi Technology Co.Ltd(002664) company, the recognition of operating revenue has a great impact on the operating results of Changying Xinzhi Technology Co.Ltd(002664) company, and there is an inherent risk that the management adjusts the time point of revenue recognition in order to achieve specific goals or expectations. Therefore, we regard revenue recognition as a key audit matter. Audit response
Our main audit procedures for revenue recognition include:
(1) Understand, evaluate and test the key internal control related to income, and perform internal control test to evaluate whether the design of internal control system is reasonable and whether the implementation is effective;
(2) Understand and review the revenue recognition policies, check the relevant terms of major customer contracts, analyze and evaluate whether the actually implemented revenue recognition policies are appropriate, and review whether the relevant accounting policies are consistently applied;
(3) Analyze the operating income, compare with the gross profit margin of the same industry in the same period in history, analyze the changes of gross profit margin, and review whether the income is reasonable; (4) We conducted a sampling test on sales revenue for Chinese sales: check sales contracts, orders, sales invoices, logistics documents, customer receipt, statement of account, requisition, etc; For foreign sales: check sales contracts, orders, logistics documents, customs declarations, freight bills of lading and other supporting documents;
(5) According to the characteristics and nature of customer transactions, select samples to implement letter of confirmation procedures to confirm the balance of accounts receivable and the amount of sales revenue;
(6) For the sales revenue recognized before and after the balance sheet date, check the customer's receipt, collection documents and other supporting documents to assess whether the sales revenue is recognized in an appropriate period.
Based on the audit evidence obtained, we believe that the presentation and disclosure of revenue recognition by the management of Changying Xinzhi Technology Co.Ltd(002664) company is appropriate. Other information
Changying Xinzhi Technology Co.Ltd(002664) the management of the company is responsible for other information. Other information includes the information covered in 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 understand 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. Responsibilities of management and governance for financial statements
Changying Xinzhi Technology Co.Ltd(002664) the management of the company 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 of Changying Xinzhi Technology Co.Ltd(002664) company is responsible for evaluating the sustainable operation ability of Changying Xinzhi Technology Co.Ltd(002664) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Changying Xinzhi Technology Co.Ltd(002664) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Changying Xinzhi Technology Co.Ltd(002664) company.
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 perform the following work: identify and evaluate 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. Understand the internal control related to audit to design appropriate audit procedures. Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures. 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 the sustainable operation ability of Changying Xinzhi Technology Co.Ltd(002664) company. 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 Changying Xinzhi Technology Co.Ltd(002664) company to be unable to continue its business. Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events. Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Changying Xinzhi Technology Co.Ltd(002664) company 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. 2、 The unit of the statement in the financial notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Changying Xinzhi Technology Co.Ltd(002664)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 7262858921855360852901
Provision for settlement
Lending funds
Trading financial assets 41280330837640979720
Derivative financial assets 658185385
Notes receivable 2419042018010611512573
Accounts receivable 6356675434657709771228
Receivables financing 737226929222277736481
Prepayment 239022520626250210828
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 44433369132129164348
Including: interest receivable
Dividends receivable
Purchase of resale financial assets
Inventory 7104392798344011721376
Contract assets 576841845606250000
Assets held for sale
Non current assets due within one year
Other current assets 750337194446157206267
Total current assets
