audit report
Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040)
Rong Cheng Shen Zi [2022] No. 210z0017
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
S / N content page 1 audit report 1-
2 balance sheet 1
3 income statement 2
4 Cash Flow Statement 3
5 statement of changes in owner's equity 4 - 5 6 notes to financial statements
Audit report
Rong Cheng Shen Zi [2022] No. 210z0017 Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) all shareholders:
1、 Audit opinion
We have audited the financial statements of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) (hereinafter referred to as Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company), including the balance sheet as of December 31, 2021, the income statement, cash flow statement, 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 financial position of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company as of December 31, 2021 and its 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 Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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) recognition of sales revenue of forging products
1. Item description
Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company's sales revenue of forging products in 2021 was 9434753 million yuan, accounting for 88.26% of the operating revenue.
Operating income is one of the key performance indicators of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company. There is an inherent risk that the income is included in the incorrect accounting period or the income is manipulated. As the sales revenue of forging products accounts for a significant proportion of operating revenue, we determine the recognition of sales revenue of forging products as a key audit event.
2. Audit response
Our audit procedures for this key audit matter mainly include:
(1) Understand and evaluate the effectiveness of management's key internal control design related to revenue recognition, and test the effectiveness of key control implementation;
(2) Select samples, check sales contracts, review important terms, and evaluate whether the company's revenue recognition policies meet the requirements of accounting standards for business enterprises;
(3) Relevant analysis procedures have been implemented for income to evaluate the rationality of changes in income and gross profit margin in each period;
(4) Select samples and check the supporting documents related to revenue recognition. The supporting documents for domestic sales include checking the sales contract, order, sales invoice and delivery receipt signed with the customer; Supporting documents for export sales include checking the sales contract, order, sales invoice, shipping order, export declaration form, E-port declaration details, export tax rebate declaration details and sales collection fund allocation voucher signed with customers;
(5) For the product sales revenue recognized before and after the balance sheet date, select samples, check relevant supporting documents, and evaluate whether the revenue is recorded in the appropriate accounting period;
(6) Select samples and execute the letter of confirmation procedure. The letter of confirmation includes the balance of accounts receivable or advances received and the transaction amount of the current period.
4、 Other information
Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) the management of the company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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
Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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 is responsible for evaluating the going concern ability of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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 Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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 Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) 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.
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.
(there is no text on this page, which is the signature and seal page of Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) Rong Cheng Shen Zi [2022] No. 210z0017 report.)
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Pan Rubin (project partner)
Chinese certified public accountant:
Liao Rui
Beijing, China Certified Public Accountant:
Hao Mengxing
March 18, 2022
Balance sheet
December 31, 2021
Prepared by: Zhangjiagang Zhangjiagang Zhonghuan Hailu High-End Equipmentco.Ltd(301040) high end equipment unit: yuan currency Co., Ltd. type: RMB
Notes to assets December 31, 2021 December 31, 2020 liabilities and all notes December 31, 2021 December 31, 2020 owner's equity date
Current assets: current liabilities:
Monetary capital v. 1 short term loans v
380441,323.39 122625,345.17 16 - 10,013291.67
Trading Fund
Financial assets - financial liabilities --
Derivative finance
Assets - liabilities --
Notes receivable v. 2 notes payable v
52,754494.84 116259,351.89 17 278703,840.75 212051,402.91
Accounts receivable v. 3 accounts payable v
352171,001.37 279898,748.19 18 117427,922.63 70,587763.75
Receivables v. 4 advance receipts
financing
