Shenzhen Fluence Technology Plc(300647)
Audit report
Zhong Huan Shen Zi (2022) No. 1110022
Audit report
Zhong Huan Shen Zi (2022) No. 1110022 Shenzhen Fluence Technology Plc(300647) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shenzhen Fluence Technology Plc(300647) (hereinafter referred to as ” Shenzhen Fluence Technology Plc(300647) company”), including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, consolidated and company’s cash flow statement, consolidated and 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 financial position of Shenzhen Fluence Technology Plc(300647) company as of December 31, 2021, and the consolidated and operating results and cash flow of the 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 Shenzhen Fluence Technology Plc(300647) 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) revenue recognition
Key audit matters how to deal with them in the audit
In 2021, Shenzhen Fluence Technology Plc(300647) company realized the revenue of 5795856 million yuan from key internal control related to sales and collection of management, and the design and operation effectiveness of each operating system, and tested the difference of effective products and services implemented by key control and its revenue recognition; The time points and methods are different, and the specific income is confirmed. 2. Spot check the important sales contracts to identify the risk recognition principle of commodity ownership. See the contract terms and conditions related to compensation transfer in note (IV) 29 for details, and evaluate the income confirmation of the company. Revenue is the key business recognition method of Shenzhen Fluence Technology Plc(300647) company, and whether the timely point meets the requirements of accounting standards for business enterprises; One of the performance indicators is that when the management manipulates revenue recognition in order to achieve specific goals or expectations. 3. Implement analysis procedures for revenue and cost, including the inherent risks of point-to-point according to product categories. Therefore, we analyze the fluctuations of revenue, cost and gross profit margin of each month and recognize them as key audit matters compared with previous periods. Compare;
Key audit matters how to deal with them in the audit
4. Carry out detailed test on the income recorded in this year, check the sales contract, invoice, delivery order and sign in confirmation (acceptance order), and carry out post period payment collection inspection to check the authenticity of income recognition;
5. Combined with the procedures of accounts receivable correspondence, the sales volume of 2021 and the balance of accounts receivable as of December 31, 2021 are confirmed by correspondence, and some important customers are selected for field visits to check and confirm the authenticity of income;
6. For the energy management income of LED contract, check the corresponding revenue sharing period agreed in the contract, acceptance records and the revenue sharing table sealed and confirmed by both parties, and check the authenticity of revenue recognition and whether it is recorded in the appropriate accounting period;
7. Perform the cut-off test procedure for the sales revenue before and after the balance sheet date, and check whether there is sales return in combination with the audit of post period events, so as to confirm whether the sales revenue is included in the appropriate accounting period.
(II) impairment of goodwill
Key audit matters how to deal with them in the audit
As shown in note (VI) 21 1 to the consolidated financial statements, we understand and evaluate Shenzhen Fluence Technology Plc(300647) company’s internal control related to the measurement of recoverable amount as of December 31, 2021;
The goodwill generated from the acquisition of subsidiaries is RMB 2. We evaluated the recoverable amount of the asset group including goodwill tested by the management of RMB 1158945 million. According to the important parameters and assumptions introduced by the enterprise accounting standard amount, including our understanding of the past economic rules of the industry, Shenzhen Fluence Technology Plc(300647) company’s end of business at least every year and the analysis and judgment of the future development trend, we conducted the impairment test on the history. The book value of goodwill shall be adjusted according to the results of impairment test financial data, industry development trend and profit forecast data made by the management. Due to the analysis and comparison, check the rationality of relevant assumptions and methods; The process of goodwill impairment test is complex, and its results largely depend on what the management has done. 3. Discuss the identification of the asset group, asset estimation and assumptions with the evaluation organization hired by the management, in which there may be an evaluation method of the recoverable amount of the asset group; Evaluate the external errors or potential management bias appointed by the management, and evaluate the competence, professional quality and objectivity of experts; Therefore, we recognize the impairment of goodwill as a key audit 4. Evaluate the impairment of goodwill and whether the key assumptions adopted are consistent.
Comply with the requirements of the accounting standards for business enterprises;
5. Review the calculation table of the recoverable amount of the asset group to which the goodwill belongs prepared by the management, compare the difference between the book value of the asset group to which the goodwill belongs and its recoverable amount, and confirm whether there is goodwill impairment.
4、 Other information
The management of Shenzhen Fluence Technology Plc(300647) 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 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
Shenzhen Fluence Technology Plc(300647) the management of the company (hereinafter referred to as “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 major misstatement caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of Shenzhen Fluence Technology Plc(300647) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Shenzhen Fluence Technology Plc(300647) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Shenzhen Fluence Technology Plc(300647) 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 Shenzhen Fluence Technology Plc(300647) 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 lead to the inability of Shenzhen Fluence Technology Plc(300647) company 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 Shenzhen Fluence Technology Plc(300647) 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.
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner):
Xiao Mingming
Chinese certified public accountant:
Liu Yanlin
Wuhan, China March 18, 2022
Shenzhen Fluence Technology Plc(300647) notes to financial statements of 2021
Shenzhen Fluence Technology Plc(300647)
Notes to financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company
Shenzhen Fluence Technology Plc(300647) (hereinafter referred to as “the company” or “the company”) was incorporated in Shenzhen Administration for Industry and Commerce of Guangdong Province on April 27, 2005, and obtained the business license of enterprise legal person with the registration number of 4403012174612, and the unified social credit code of the company is 91440 Bgt Group Co.Ltd(300774) 117464b.
As of December 31, 2021, the registered capital of the company is RMB 43061875500 and the share capital is RMB 43061875500. See note VI and 38 for details of the share capital.
1. The company’s registered place, organizational form and headquarters address
Organization form of the company: joint stock limited company
Registered address of the company: huanggekeng community, Longcheng street, Longgang District, Shenzhen
