Anhui Ankai Automobile Co.Ltd(000868) audit report
Rong Cheng Shen Zi [2022] No. 230z0795
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 audit report 1-6
2 consolidated balance sheet 7
3 consolidated income statement 8
4 consolidated cash flow statement 9
5 consolidated statement of changes in owner’s equity 10 – 11
6 balance sheet of parent company 12
7. Income statement of the parent company 13
8 cash flow statement of parent company 14
9 statement of changes in owner’s equity of the parent company 15 – 16
10 notes to the financial statements 17 – 136
Audit report
Rong Cheng Shen Zi [2022] No. 230z0795 Anhui Ankai Automobile Co.Ltd(000868) all shareholders:
1、 Audit opinion
We have audited the financial statements of Anhui Ankai Automobile Co.Ltd(000868) (hereinafter referred to as Anhui Ankai Automobile Co.Ltd(000868) ), 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 provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Anhui Ankai Automobile Co.Ltd(000868) the consolidated and parent company as of December 31, 2021 and the operating results and cash flow of the consolidated and parent 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 Anhui Ankai Automobile Co.Ltd(000868) , 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) revenue recognition
1. Event description
As stated in notes III, 25, V and 37 of Anhui Ankai Automobile Co.Ltd(000868) consolidated financial statements, Anhui Ankai Automobile Co.Ltd(000868) operating income mainly comes from the sales of complete vehicles and accessories Anhui Ankai Automobile Co.Ltd(000868) in 2021, the operating income was 1780721600 yuan. As an important item of Anhui Ankai Automobile Co.Ltd(000868) financial statements, operating income is included in the wrong accounting period or is manipulated with high risk, and the recognition and measurement have a significant impact on the financial statements, we regard the recognition and measurement of operating income as the key audit matters.
2. Audit response
Our audit procedures for the recognition and measurement of operating revenue mainly include:
(1) Understand, test and evaluate the design and operation effectiveness of Anhui Ankai Automobile Co.Ltd(000868) the internal control system related to the recognition and measurement of operating revenue;
(2) Implement analytical procedures for operating revenue and operating cost, analyze and review the sales revenue, sales cost and gross profit margin, and review the matching of operating revenue and operating cost;
(3) Spot check important sales contracts, identify contract terms and contents related to the transfer of commodity control, and review whether the recognition and measurement of operating revenue comply with the provisions of the accounting standards for business enterprises;
(4) Spot check the current operating income, and review the consistency between the sales contract, vehicle collection form, sales invoice, export declaration form, customer payment collection and other business documents and the recognition and measurement of operating income;
(5) Check the integrity of the recognition of business income by spot checking the business documents such as vehicle collection form and customs declaration form in this period, and checking the relevant accounting vouchers, sales contracts and invoices;
(6) Confirm the business income and accounts receivable of major customers by letter to verify the authenticity, accuracy and integrity of the recognition of business income;
(7) Review the accuracy and completeness of the recognition of operating income by consulting the relevant documents of national and local new energy vehicle subsidies, Anhui Ankai Automobile Co.Ltd(000868) new energy vehicle subsidy application materials and the collection of new energy vehicle subsidies in this period;
(8) Perform cut-off test on sales transactions before and after the balance sheet date, and review whether the operating revenue is recorded in the appropriate accounting period.
(II) provision for impairment of accounts receivable
1. Event description
As stated in note V and 2 of Anhui Ankai Automobile Co.Ltd(000868) financial statements, as of December 31, 2021, the book balance of Anhui Ankai Automobile Co.Ltd(000868) accounts receivable was 16944029 million yuan and the balance of bad debt provision of accounts receivable was 6266284 million yuan. As the amount of provision for impairment of accounts receivable is significant, and the recoverability of accounts receivable and the provision for bad debts of accounts receivable involve the judgment of Anhui Ankai Automobile Co.Ltd(000868) management, we regard the provision for impairment of accounts receivable as a key audit matter. 2. Audit response
Our audit procedures for the provision for impairment of accounts receivable mainly include:
(1) Understand, test and evaluate the design and operation effectiveness of Anhui Ankai Automobile Co.Ltd(000868) the internal control system related to the provision for impairment of accounts receivable;
(2) Analyze the rationality of the accounting estimation of accounts receivable bad debt reserves, including the basis for determining the combination of accounts receivable and the judgment of individual withdrawal of bad debt reserves, and evaluate the appropriateness of the method and calculation of the impairment evaluation of accounts receivable divided into several combinations by the management;
(3) Reviewed the rationality of the historical credit loss empirical data and key assumptions used by the management to calculate the expected credit loss rate, and evaluated the rationality of the management’s credit risk assessment and identification of accounts receivable;
(4) Recheck the rationality of the evaluation results of bad debt provision for Anhui Ankai Automobile Co.Ltd(000868) accounts receivable through the spot check of the collection records of main customers in the current period and the collection after the period;
(5) For the accounts receivable involved in litigation, through the spot check of the judgment basis for the recoverability of accounts receivable, review the adequacy and appropriateness of the provision for bad debts of accounts receivable, and analyze the adequacy and appropriateness of the provision for bad debts of accounts receivable by letter to lawyers;
(6) Through the comparative analysis of the withdrawal of bad debt reserves of accounts receivable publicly disclosed by Anhui Ankai Automobile Co.Ltd(000868) and listed companies in the same industry, review the rationality of the proportion of bad debt reserves of accounts receivable in the balance of accounts receivable.
4、 Other information
Anhui Ankai Automobile Co.Ltd(000868) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Anhui Ankai Automobile Co.Ltd(000868) 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 assessing Anhui Ankai Automobile Co.Ltd(000868) the ability of going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless the management plans to liquidate Anhui Ankai Automobile Co.Ltd(000868) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Anhui Ankai Automobile Co.Ltd(000868) .
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 Anhui Ankai Automobile Co.Ltd(000868) 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 Anhui Ankai Automobile Co.Ltd(000868) 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 the entity or business activities in Anhui Ankai Automobile Co.Ltd(000868) to express an audit opinion on the financial statements. We are fully responsible for the audit, guidance and implementation of the audit opinions of the group.
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.
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 Anhui Ankai Automobile Co.Ltd(000868) Rong Cheng Shen Zi [2022] No. 230z0795 report)
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Luan Yanpeng (project partner) Chinese certified public accountant:
Yang Xiaolong
Beijing, China Certified Public Accountant:
Yi Yuwei
March 18, 2022
Anhui Ankai Automobile Co.Ltd(000868) notes to financial statements
Anhui Ankai Automobile Co.Ltd(000868)
Notes to financial statements
Year 2021
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company
1. Company profile
Anhui Ankai Automobile Co.Ltd(000868) (hereinafter referred to as the company or the company) is a joint stock limited company established through public offering, which was exclusively initiated by the former Hefei Feihe automobile manufacturing plant (now renamed Anhui Ankai Automobile Group Co., Ltd.) (hereinafter referred to as Ankai group) with the approval of Wanzheng Secretary [1997] No. 63 document of Anhui Provincial People’s Government on April 21, 1997. In July 1997, the China Securities Regulatory Commission approved the public offering of 60 million RMB ordinary shares to the public, which was made public on July 22 of the same year
