financial reports
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 21, 2022
Name of audit institution: Tianjian Certified Public Accountants (special general partnership)
Audit Report No.: miolant annual report (TJs [2022] No. 978)
Name of certified public accountant he Linfei, Li Zongwei
Body of audit report
1、 Audit opinion
We have audited the financial statements of Zhejiang Meorient Commerce & Exhibition Inc(300795) (hereinafter referred to as "Millard"), 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 as of December 31, 2021, as well as 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 miolante 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.
（1） Revenue recognition
1. Event description
See financial report V (39) and VII (61) for relevant information disclosure.
The operating revenue of miolante mainly comes from business exhibition and digital exhibition services. The operating revenue of miolante company in this year is RMB 181640900, of which the operating revenue of digital exhibition and other businesses is RMB 154025400, accounting for 84.80% of the operating revenue.
As the operating revenue is one of the key performance indicators of the company, and the revenue recognition involves complex information systems and major judgments, the management of the company (hereinafter referred to as the management) may have the inherent risk of achieving specific goals or expectations through inappropriate revenue recognition. Therefore, we identified revenue recognition as a key audit matter.
2. Audit response
For revenue recognition, our audit procedures mainly include:
(1) Understand the key internal controls related to revenue recognition, evaluate the design of these controls, determine whether they are implemented, and test the operation effectiveness of relevant internal controls;
(2) Test the general control of the information system and the application control related to the revenue recognition process;
(3) Check the sales contract, understand the main contract terms or conditions, and evaluate whether the revenue recognition method is appropriate;
(4) Analyze the operating income and gross profit margin according to the exhibition, identify whether there are significant or abnormal fluctuations, and find out the reasons for the fluctuations;
(5) For business exhibition revenue, check the supporting documents related to revenue recognition by sampling, including exhibition contract, invoice and exhibition layout map; For digital exhibition revenue, check the supporting documents related to revenue recognition by sampling, including exhibition contracts, invoices, actual development records of background business, communication records with exhibitors, etc;
(6) Combined with accounts receivable letters, send letters to major customers in the form of sampling;
(7) Conduct a cut-off test on the operating income recognized before and after the balance sheet date to evaluate whether the operating income is recognized in an appropriate period;
(8) Obtain the development records of digital exhibition business after the balance sheet date, and check whether there is any situation that does not meet the conditions for revenue recognition on the balance sheet date;
(9) Check whether the information related to operating income has been properly presented in the financial statements.
（2） Goodwill impairment
1. Event description
See financial report V (31) and VII (28) for relevant information disclosure.
As of December 31, 2021, the original book value of the company's goodwill was 479967 million yuan, the impairment provision was 6.2926 million yuan, and the book value was 417041 million yuan.
When there are signs of impairment in the asset group or combination of asset groups related to goodwill, and at the end of each year, the management shall conduct impairment test on goodwill. The management shall conduct impairment test on goodwill in combination with its related asset group or asset group combination, and the recoverable amount of relevant asset group or asset group combination shall be calculated and determined according to the present value of estimated future cash flow. The key assumptions used in the impairment test include: income growth rate in the detailed forecast period, growth rate in the sustainable forecast period, gross profit margin, discount rate, etc.
As the amount of goodwill is significant and the goodwill impairment test involves significant management judgment, we determine the impairment of goodwill as a key audit event.
2. Audit response
For goodwill impairment, our audit procedures mainly include:
(1) Understand the key internal controls related to goodwill impairment, evaluate the design of these controls, determine whether they are implemented, and test the operational effectiveness of relevant internal controls;
(2) Review the management's forecast of the present value of future cash flow and actual operating results in previous years, and evaluate the accuracy of the management's past forecast;
(3) Understand and evaluate the competence, professional quality and objectivity of external valuation experts employed by the management;
(4) Evaluate the rationality and consistency of the methods used by the management in the impairment test;
(5) Evaluate the rationality of the key assumptions adopted by the management in the impairment test, and review whether the relevant assumptions are consistent with the industry conditions, business conditions, historical experience and other assumptions used by the management related to the financial statements;
(6) Test the accuracy, completeness and relevance of the data used by the management in the impairment test, and review the internal consistency of relevant information in the impairment test;
(7) Test whether the management's calculation of the present value of the estimated future cash flow is accurate;
(8) Check whether the information related to goodwill impairment has been properly presented in the financial statements.
4、 Other information
The management of the company is responsible for other information. Other information includes the information covered in the 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.
In preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of miolant company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The management of the company (hereinafter referred to as the management) is responsible for supervising the financial reporting process of the 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） The purpose of expressing audit opinions is not to understand the effectiveness of internal control 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 the sustainable operation ability of miorant 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 result in the company's inability to continue as a going concern.
（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 entities or business activities in the company 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 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. 2、 The unit of the statement in the financial notes to the financial statements is: yuan 1. The preparation unit of the consolidated balance sheet is Zhejiang Meorient Commerce & Exhibition Inc(300795)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 2978679221728768243592
Provision for settlement
Lending funds
Trading financial assets 35066185907540473150
Derivative financial assets
Notes receivable
Accounts receivable 259140257116504750
Receivables financing
Advance payment 13 Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) 551528963025
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 527676787415922189
Including: interest receivable
Dividends receivable
Purchase of resale financial assets
stock
