Tianshui Zhongxing Bio-Technology Co.Ltd(002772)
Audit report
Zhsz (2022) No. 0810003
catalogue
Starting page audit report financial statements
Consolidated balance sheet 1
Consolidated income statement 3
Consolidated cash flow statement 4
Consolidated statement of changes in shareholders’ equity 5
Balance sheet 7
Income statement 9
Cash Flow Statement 10 statement of changes in shareholders’ equity 11
Note 13 to the financial statements
Audit report
Zhong Huan Shen Zi (2022) No. 0810003 Tianshui Zhongxing Bio-Technology Co.Ltd(002772) all shareholders:
1、 Audit opinion
We have audited the financial statements of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) (hereinafter referred to as ” Tianshui Zhongxing Bio-Technology Co.Ltd(002772) “), including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, consolidated and company’s cash flow statement, consolidated and 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 financial position of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) the consolidated and the company as of December 31, 2021, as well as the operating results and cash flow of the consolidated and the 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 Tianshui Zhongxing Bio-Technology Co.Ltd(002772) , 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
Key audit matters how to deal with them in the audit
See notes IV, 24 and 1 to the financial statements Evaluate the management’s internal control related to sales and collection VI. 35. Design and operation effectiveness of;
Tianshui Zhongxing Bio-Technology Co.Ltd(002772) 2021 annual operating income Select a sample to check the sales contract, identify the contract and judge the RMB 155614672549, all of which are commodity sales
Xingye shall fulfill its obligation to sell goods and evaluate the income of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) Tianshui Zhongxing Bio-Technology Co.Ltd(002772) performed the contract
Confirm whether the time point meets the requirements of the accounting standards for business enterprises;
Obligation, that is, when the customer obtains the control right of relevant goods
Audit report page 1 of 4
Key audit matters how to deal with them in the audit
Revenue is recognized, and the customer obtains the control right of relevant commodities, 3 Selecting a sample of revenue transactions recorded in this year and checking sales refers to being able to dominate the use of the commodity and obtain almost all economic benefits from the contract, delivery note, delivery note, invoice and other supporting documents. Evaluate whether relevant revenue recognition complies with the requirements of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) revenue recognition. In view of the characteristics of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) industry and revenue accounting policies;
Confirm the inherent risks in the link. Revenue is the key 4 Independent confirmation of important customers in the current sales, including one of the performance indicators. The company is mainly engaged in the sales variety, quantity, transaction amount and transaction balance of edible fungi; Whether the recognition of production and sales and operating revenue is appropriate
Tianshui Zhongxing Bio-Technology Co.Ltd(002772) operating results have a great impact. Based on 5 We select the pre shipment invoice, post shipment invoice and other transaction record as the identification of key revenue. Documentation to conduct a cut-off test to evaluate whether revenue is recorded in the appropriate accounting period.
4、 Other information
Tianshui Zhongxing Bio-Technology Co.Ltd(002772) management is responsible for other information. Other information includes the information covered in the annual report of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) 2021, 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
Tianshui Zhongxing Bio-Technology Co.Ltd(002772) Management (hereinafter referred to as “management”) is responsible for preparing 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 due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Tianshui Zhongxing Bio-Technology Co.Ltd(002772) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) .
Audit report page 2 of 4
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:
(I) 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.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management’s use of the going concern assumption. 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 Tianshui Zhongxing Bio-Technology Co.Ltd(002772) 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 result in Tianshui Zhongxing Bio-Technology Co.Ltd(002772) inability to continue as a going concern.
(V) evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Tianshui Zhongxing Bio-Technology Co.Ltd(002772) in order to express an opinion on the financial statements. We are responsible for guiding, supervising and executing the group audit. We are fully responsible for the audit opinion.
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 most important to the audit of the current financial statements, so it constitutes page 3 of 4 of the audit report
Become 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.
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner):
An suqiang
Chinese certified public accountant:
Yang Yichen
Wuhan, China March 23, 2022
Consolidated balance sheet
December 31, 2021
Prepared by: Tianshui Zhongxing Bio-Technology Co.Ltd(002772) amount unit: RMB
Project notes December 31, 2021 January 1, 2021 December 31, 2020
Current assets:
Monetary capital VI. 1159519798830121491208067121491208067 trading financial assets VI. 22634286682676886108606368861086063 notes receivable of derivative financial assets
Accounts receivable VI. 317878724152244266346 accounts receivable financing
Prepayment VI. 42441993179
