Profit Cultural & Creative Group Co.Ltd(300640)
Audit report
Huaxing Certified Public Accountants
(special general partnership)
Audit report
Hxsz [2022] No. 22003330018 Profit Cultural & Creative Group Co.Ltd(300640) all shareholders:
1、 Audit opinion
We have audited the financial statements of Profit Cultural & Creative Group Co.Ltd(300640) (hereinafter referred to as Profit Cultural & Creative Group Co.Ltd(300640) 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 owner's equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company's financial position of Profit Cultural & Creative Group Co.Ltd(300640) company as of December 31, 2021, as well as the consolidated and parent company's operating results and consolidated and parent company's 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 Profit Cultural & Creative Group Co.Ltd(300640) 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.
Recognition of export income
1. Item description
In 2021, Profit Cultural & Creative Group Co.Ltd(300640) company's consolidated main business income was 8055743 million yuan, including export income of 7922214 million yuan, accounting for 98.34% of the main business income. Export business is the main source of income and profit of Profit Cultural & Creative Group Co.Ltd(300640) company. Therefore, we determined the authenticity and integrity of export income as the key audit matter.
For the accounting policies on revenue recognition, please refer to note III (XXXIII) of the financial statements. For other details, please refer to note V (XXVIII) of the financial statements and note XIV (I) of the financial statements. 2. Audit response
Our audit procedures for the authenticity and integrity of export income include but are not limited to:
(1) Understand and evaluate the revenue recognition policy of Profit Cultural & Creative Group Co.Ltd(300640) company through reviewing the sales contract and interviewing with the management;
(2) Understand and test the design and implementation of internal control system and financial accounting system related to sales and collection of Profit Cultural & Creative Group Co.Ltd(300640) company;
(3) Obtain the sub ledger of export revenue of Profit Cultural & Creative Group Co.Ltd(300640) company, select samples of revenue transactions recorded in this year, and check the original documents such as sales orders, sales contracts, delivery notices, export customs declarations, export packing lists and export invoices to confirm the authenticity and accuracy of sales revenue;
(4) Implement analysis procedures for income and cost, including: analysis of monthly income, cost and gross profit fluctuation in the current period, and comparative analysis of income, cost and gross profit margin of main products and main customers in the current period with that in the previous period;
(5) Enter the China E-port system and check the export information recorded in the E-port system during the reporting period to verify the authenticity, accuracy and integrity of the financial and business data of Profit Cultural & Creative Group Co.Ltd(300640) company;
(6) Take enough samples to confirm the amount and balance of accounts receivable and advances, and conduct substitution test on the samples that have not replied;
(7) Combined with the declaration of export tax rebate, check whether the confirmation of book export income is consistent with the relevant data of declaration of tax rebate;
(8) Select a sample of revenue transactions recorded before and after the balance sheet date and check the delivery notice and other supporting documents to assess whether the sales revenue is recognized in an appropriate period.
4、 Other information
The management of Profit Cultural & Creative Group Co.Ltd(300640) company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Profit Cultural & Creative Group Co.Ltd(300640) company, 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 Profit Cultural & Creative Group Co.Ltd(300640) company, disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Profit Cultural & Creative Group Co.Ltd(300640) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Profit Cultural & Creative Group Co.Ltd(300640) 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:
(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 an opinion 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 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 Profit Cultural & Creative Group Co.Ltd(300640) 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 Profit Cultural & Creative Group Co.Ltd(300640) company to be 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 Profit Cultural & Creative Group Co.Ltd(300640) 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 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.
Huaxing certified public accountants China Certified Public Accountant: Liu Yandong
(special general partnership) (project partner)
Chinese certified public accountant: Xian Chuanzhi
Fuzhou, China March 18, 2002
Notes to financial statements
(the following amounts are in RMB unless otherwise specified)
1、 Basic information of the company
(I) Company Profile
Profit Cultural & Creative Group Co.Ltd(300640) (hereinafter referred to as Deyi group or company), formerly known as Fuzhou Deyi Ceramics Trading Co., Ltd., was jointly invested and established by Fuzhou arts and crafts import and Export Co., Ltd. and Dehua County Foreign Trade Co., Ltd. in 1995. On November 11, 2011, the company was restructured into a joint-stock company. According to the resolution of the company's second extraordinary general meeting in 2015, the company's name was changed from "Fujian Deyi Group Co., Ltd." to " Profit Cultural & Creative Group Co.Ltd(300640) ". The company received the changed business license on December 25, 2015, and the unified social credit code is 913501001543955516. The registered capital of the company is 286850254 yuan; Legal representative of the company: Wu tifang; Registered address: room 512, No. 22, Fuxing Avenue, Gushan Town, Jin'an District, Fuzhou City, Fujian Province.
On March 17, 2017, approved by the reply on approving Profit Cultural & Creative Group Co.Ltd(300640) initial public offering of shares (zjxk [2017] No. 375 document) of China Securities Regulatory Commission, the company issued 20 million ordinary shares to the public for the first time, and was listed and traded on the gem of Shenzhen Stock Exchange on April 17, 2017. The stock is referred to as " Profit Cultural & Creative Group Co.Ltd(300640) ", and the securities code is " Profit Cultural & Creative Group Co.Ltd(300640) ", The registered capital of the company is changed to RMB 80 million.
On June 8, 2018, according to the company's 2017 annual equity distribution plan: Based on the company's existing total share capital of 80000000 shares, the company distributed 2.50 yuan in cash (including tax) to all shareholders for every 10 shares. At the same time, the capital reserve was converted into share capital, and 8 shares were converted into all shareholders for every 10 shares, with a total of 64 million shares. After this conversion, the registered capital of the company was 14400000000 yuan and the share capital was 14400000000 yuan.
In November 2018, according to the proposal of Profit Cultural & Creative Group Co.Ltd(300640) 2018 restricted stock incentive plan (Draft) deliberated and approved by the company's third extraordinary general meeting in 2018 and the revised articles of association, 103 incentive objects were granted restricted shares. The registered capital of the company was increased by 306 Shanghai Pudong Development Bank Co.Ltd(600000) yuan and the registered capital after change was 1470660000 yuan.
On May 15, 2019, according to the company's 2018 annual equity distribution plan: Taking the company's existing total share capital of 147066000 shares as the base, distribute RMB 2.00 in cash (including tax) to all shareholders for every 10 shares, and increase the share capital with the capital reserve, and increase 5 shares for every 10 shares to all shareholders, with a total increase of 73533000 shares. After this increase, the registered capital of the company is RMB 22059900000 and the share capital is RMB 22059900000.
In November 2019, the board of directors was approved and authorized by the company's third extraordinary general meeting of shareholders in 2018 to handle matters related to equity incentive. According to the resolution of the 16th meeting of the third board of directors passed on November 5, 2019, the proposal on granting reserved restricted shares to incentive objects was deliberated and approved, 17 incentive objects were granted restricted shares, and the company increased the registered capital by 26500000 yuan, The registered capital after the change is RMB 22086400000.
In January 2020, after the review of the general meeting of shareholders of the company, the proposal on repurchasing and canceling some restricted shares in the 2018 restricted stock incentive plan and the proposal on adjusting the repurchase price and repurchase quantity of restricted shares in the 2018 restricted stock incentive plan were adopted at the 17th meeting of the third board of directors on November 25, 2019, The Company repurchased 90000 restricted shares granted to an incentive object but not yet lifted the restrictions. After the repurchase, the registered capital of the company was changed from RMB 22086400000 to RMB 22077400000, and the total number of shares of the company was changed from 22086400000 to 22077400000.
The reply on Approving the registration of Profit Cultural & Creative Group Co.Ltd(300640) issuing shares to specific objects (CSRC license [20]) issued by China Securities Regulatory Commission on October 15, 2020
