Shenzhen Leaguer Co.Ltd(002243)
audit report
Dhsz [2022] No. 004708
Dahua Certified Public Accountants (special general partnership)
Da Hua Certified Public Accountants（Special General Partnership）
Shenzhen Leaguer Co.Ltd(002243)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page I. audit report 1-8 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3
Consolidated cash flow statement 4
Consolidated statement of changes in shareholders’ equity 5-6 balance sheet of parent company 7-8 profit statement of parent company 9
Cash flow statement of parent company 10 statement of changes in shareholders’ equity of parent company 11-12 notes to financial statements 1-151
Dahua Certified Public Accountants (special general partnership) 12 / F, building 7, No. 16 courtyard, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa com. Audit report
Dahuashen Zi [2022] No. 004708 Shenzhen Leaguer Co.Ltd(002243) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shenzhen Leaguer Co.Ltd(002243) (hereinafter referred to as Shenzhen Leaguer Co.Ltd(002243) 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 shareholders’ 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 consolidated and parent company’s financial position of Shenzhen Leaguer Co.Ltd(002243) company 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 Shenzhen Leaguer Co.Ltd(002243) company and have fulfilled other responsibilities in terms of professional ethics. It is the basis for us to obtain and express audit opinions. 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.
We confirm that the following matters are the key audit matters that need to be communicated in the audit report. 1. Recognition of operating income
2. Other non current financial assets measured at fair value
（1） Recognition of operating income
1. Event description
Shenzhen Leaguer Co.Ltd(002243) company’s revenue is mainly divided into product sales revenue of new material industry and scientific and technological innovation service revenue. As described in note IV, (33) and note VI and note 44 of the financial statements, the operating revenue of Shenzhen Leaguer Co.Ltd(002243) company in 2021 was Gad Environmental Technology Co.Ltd(300854) 860136 yuan, including 157323863314 yuan of new material industry revenue and 135597486724 yuan of scientific and technological innovation service revenue.
As the operating income is an important item in the consolidated financial statements of Shenzhen Leaguer Co.Ltd(002243) company and one of the important indicators of the company’s performance assessment, and the income of scientific and technological innovation services increased significantly in this period, whether the revenue recognition reflects the risk of material misstatement in the appropriate period of the financial statements, we recognize the recognition of operating income as a key audit matter.
2. Audit response
Our important audit procedures for the recognition of operating revenue of Shenzhen Leaguer Co.Ltd(002243) company include:
(1) Understand, evaluate and test the design and implementation of internal control related to revenue recognition of Shenzhen Leaguer Co.Ltd(002243) company to evaluate whether the internal control of revenue recognition is compliant and effective.
(2) Select a sample of business contracts and interview the management to evaluate whether the revenue recognition policies of Shenzhen Leaguer Co.Ltd(002243) company meet the requirements of relevant accounting standards.
(3) Implement analytical procedures for operating revenue and operating costs, compare and analyze abnormal changes in gross profit margin by month and year, and review the rationality of income changes.
(4) We have adopted the sampling method to implement the following procedures for the operating revenue recognized by Shenzhen Leaguer Co.Ltd(002243) company:
Income from new material industry:
① For the sales of Chinese customers, select important customers, check the sales contract, delivery document, receipt document, bookkeeping voucher, current collection fund flow document, statement of accounts and other materials, and implement the letter confirmation procedure in combination with accounts receivable;
② For export sales, check the sales contract, export declaration form, export cargo bill of lading, etc., log in to the customs declaration system and foreign exchange management system in person, obtain the import and export declaration data of Shenzhen Leaguer Co.Ltd(002243) company in the two systems, check with the book information, and implement the letter confirmation procedure for important customers in combination with accounts receivable;
③ For customers who have daily trading system platform with Shenzhen Leaguer Co.Ltd(002243) company, log in to their trading system to query the daily trading records, invoicing and unsettled funds between customers and Shenzhen Leaguer Co.Ltd(002243) company, archive the screenshots of the inspection records, and check the queried data information with the book;
④ Analyze and select samples of important customers, and confirm whether there is an association relationship between customers and Shenzhen Leaguer Co.Ltd(002243) company through verification procedures such as network, industrial and commercial information and asking management;
⑤ Perform a cut-off test to check the product sales revenue recognized before and after the balance sheet date with the delivery note, receipt, acceptance statement, export related documents and other supporting documents in the transaction, so as to evaluate whether the sales revenue is recognized in an appropriate period.
Income from scientific and technological innovation services:
① For the carrier of sales letter and service letter of acceptance in the park, the carrier of revenue collection in the park can be checked and confirmed in combination with the carrier of sales letter and service letter of acceptance in the park;
② For the service income of basic incubation service, park operation service, system promotion and industrial consulting service in the income of scientific and technological innovation service, check the corresponding service contract, sales invoice, current payment collection fund flow sheet and settlement sheet, and recheck and calculate the sales income recognized in the current period in combination with the service period and service terms agreed in the contract;
③ Analyze and select samples of important customers, and confirm whether there is an association between customers and Shenzhen Leaguer Co.Ltd(002243) company through verification procedures such as network, industrial and commercial information and management interview;
④ Conduct a cut-off test on the sales revenue before and after the balance sheet date, select samples and check relevant supporting documents to evaluate whether the relevant sales revenue has been recognized in an appropriate period. (5) Assess whether the management’s financial statement disclosure of income is appropriate.
Based on the audit work performed, we believe that the recognition of operating income of Shenzhen Leaguer Co.Ltd(002243) company meets the requirements of accounting standards, and the management’s presentation and disclosure of operating income is appropriate. （2） Other non current financial assets measured at fair value
1. Event description
As stated in notes IV and Xi to the financial statements and notes VI and 13, the balance of other non current financial assets of Shenzhen Leaguer Co.Ltd(002243) company on December 31, 2021 was 128927757804 yuan.
Shenzhen Leaguer Co.Ltd(002243) company classifies other non current financial assets as financial assets measured at fair value through profit or loss in accordance with the relevant new accounting standards for financial instruments for business enterprises revised and issued by the Ministry of finance. The fair value measurement of financial assets involves significant judgment of the management. Therefore, we regard the fair value measurement of other non current financial assets as a key audit matter.
2. Audit response
Our important audit procedures for the fair value measurement of other non current financial assets at the end of the period include:
(1) Evaluate and test the design and operation effectiveness of internal control related to other non current financial assets.
(2) For the investment in other important non current financial assets, we send a letter to the investee to confirm the investment amount, shareholding ratio and dividend distribution of such financial assets, so as to comprehensively analyze the accuracy and recoverability of such assets.
(3) For other important non current financial assets, analyze and evaluate the effectiveness of such assets by obtaining industrial and commercial data, recent financial status and online inquiry of industrial and commercial information. (4) Review whether the company’s management’s valuation of the fair value of other non current financial assets at the end of the period is accurate:
① Obtain and review the valuation calculation table of the fair value of other non current financial assets other than cost method provided by the company, and review the accuracy of valuation calculation according to the valuation method of fair value;
② Obtain and review the evaluation report, audit report, new round of financing contract, resolution of the shareholders’ meeting, fund operation report, financial statements and other supporting documents corresponding to the company’s valuation calculation sheet; ③ If the market law is involved and the report results of the third-party evaluation or valuation institution need to be used, we have reviewed the report issued by the third-party institution;
(5) Assess whether the management’s financial statement disclosure of other non current financial assets is appropriate.
Based on the audit work performed, we believe that the closing valuation of other non current financial assets of Shenzhen Leaguer Co.Ltd(002243) company meets the requirements of accounting standards, and the management’s presentation and disclosure of other non current financial assets, changes in fair value and profits and losses are appropriate.
4、 Other information
Shenzhen Leaguer Co.Ltd(002243) the management of the company 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 understand 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
Shenzhen Leaguer Co.Ltd(002243) 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 of Shenzhen Leaguer Co.Ltd(002243) company is responsible for evaluating the continuous operation ability of Shenzhen Leaguer Co.Ltd(002243) company, disclosing matters related to continuous operation (if applicable), and applying the assumption of continuous operation, unless the management plans to liquidate Shenzhen Leaguer Co.Ltd(002243) company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Shenzhen Leaguer Co.Ltd(002243) 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
