Beijing New Building Materials Public Limited Company(000786)
audit report
Tian Zhi Ye Zi [2022] No. 13265
catalogue
Audit report 12021 annual financial statements 62021 annual financial statements note 18 audit report
Tian Zhi Ye Zi [2022] No. 13265 Beijing New Building Materials Public Limited Company(000786) all shareholders:
1、 Audit opinion
We have audited the attached financial statements of Beijing New Building Materials Public Limited Company(000786) (hereinafter referred to as " Beijing New Building Materials Public Limited Company(000786) "), 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 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 as of December 31, 2021 and the consolidated and parent company's 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 Beijing New Building Materials Public Limited Company(000786) , 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.
Audit report (Continued)
Tian Zhi Ye Zi [2022] No. 13265
Key audit matters how to deal with them in the audit
Revenue recognition
As stated in "III. (XXXIV) revenue" in the attached notes to the financial statements, (1) understand, evaluate and test the internal control related to revenue recognition Beijing New Building Materials Public Limited Company(000786) in performing the performance obligations in the contract, that is, sending products and customized;
Revenue is recognized when the account receives it; As stated in the notes to the attached financial statements "VI. (IV) (2) interview the management and check the main terms of the sales contract to understand XII) operating revenue and operating cost", the revenue recognition policy of Beijing New Building Materials Public Limited Company(000786) 2021 is evaluated for its appropriateness;
The operating income was 210856911 million yuan, compared with that in 2020
16848095500 yuan, an increase of 4237595600 yuan, an increase of 25.15%. (3) Implementation of analytical procedures: the sales volume and sales order of the current period may be overestimated due to the fact that the operating revenue is one of the key performance indicators of Beijing New Building Materials Public Limited Company(000786) and the price increase, gross profit and other relevant data of the current period vary greatly by product type and monthly and previous sales, so we compare the authenticity of the operating revenue and analyze its rationality;
For key audit matters. (4) Check the supporting vouchers related to revenue recognition, including sales order, delivery order, customer receipt and sales invoice;
(5) For the revenue transactions recorded before and after the balance sheet date, select samples to check the supporting vouchers for revenue recognition, and evaluate whether the revenue recognition is recorded in the appropriate accounting period.
Major pending litigation
As stated in "XIII. Commitments and Contingencies" in the notes to the financial statements, since (1) understanding, evaluating and testing the internal control related to contingencies, a number of housing owners and housing construction companies in the United States have targeted Beixin system since 2009;
Building materials and its subsidiary Taishan gypsum Co., Ltd. filed a lawsuit to claim compensation for the latest progress of gypsum board quality, response plan and the possibility and estimated amount of loss due to the communication between gypsum (2) and Beijing New Building Materials Public Limited Company(000786) management and management to discuss the quality problems of litigation event board; Various losses caused by the problem; Cases as of December 31, 2021
Most of the cases have been settled, but some cases are still in the process of trial, and the Institute (3) understands and confirms by letter the attorney in charge of the litigation, and the litigation involving the choice to withdraw from the plaintiff who has reached a settlement continues. We ask him to explain: ① the brief facts of the case and the current process; ② The reason why the law regards the litigation matter as a key audit matter is that before the case is fully completed, the Division has an understanding of the views and response plans of the management on the above case (such as the possible results of the case and its possible impact on the financial statements out of court and before the end of the case), as well as the opinions of lawyers on the possible results; ③ The occurrence of an emergency requires significant judgment by the management. Possibility and estimated amount of loss;
(4) Check the presentation and disclosure of information related to such major litigation in the financial statements.
Audit report (Continued)
Tian Zhi Ye Zi [2022] No. 13265 IV. other information
Beijing New Building Materials Public Limited Company(000786) Management (hereinafter referred to as "management") 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
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 Beijing New Building Materials Public Limited Company(000786) 's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless it plans to liquidate, terminate operations or has no other realistic choice. The management is responsible for supervising the financial reporting process of Beijing New Building Materials Public Limited Company(000786) .
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.
Audit report (Continued)
Tszz [2022] No. 13265 (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 is significant uncertainty in the matters or circumstances that may lead to major doubts about Beijing New Building Materials Public Limited Company(000786) 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 Beijing New Building Materials Public Limited Company(000786) unable to continue to operate.
(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 Beijing New Building Materials Public Limited Company(000786) to express an audit opinion 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 most important for the audit of the consolidated financial statements of the current period, 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.
Audit report (Continued)
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Chinese certified public accountant
(project partner):
Beijing, China
March 21, 2002
Chinese certified public accountant:
Note no. of the project from December 31, 2021 to December 31, 2020
current assets
Monetary capital 5722329707559354533133 VI. (I)
△ provision for settlement
△ lending funds
Trading financial assets 263545640662162714510580 VI. (II)
Derivative financial assets
Notes receivable 229746227784083446634 VI. (III)
Accounts receivable
