Zhuhai Huajin Capital Co.Ltd(000532)
Annual financial report for 2021
March 2022
Zhuhai Huajin Capital Co.Ltd(000532)
Annual financial report for 2021
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 22, 2022
Name of audit institution: Dahua Certified Public Accountants (special general partnership)
Audit Report No. [2022] 001139
Name of certified public accountant Liang, Li Zihong
Unqualified opinion of audit opinion type standard
Body of audit report
Dhsz [2022] 001139 Zhuhai Huajin Capital Co.Ltd(000532) all shareholders:
1、 Audit opinion
We have audited the financial statements of Zhuhai Huajin Capital Co.Ltd(000532) (hereinafter referred to as " Zhuhai Huajin Capital Co.Ltd(000532) "), 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 financial position of Zhuhai Huajin Capital Co.Ltd(000532) 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Zhuhai Huajin Capital Co.Ltd(000532) , 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.
1. Determination of structured entities included in the consolidation scope of financial statements
2. Measurement of fair value of other non current financial assets
（1） Determination of structured entities included in the consolidation scope of financial statements
1. Event description
Please refer to the accounting policies described in "IV. important accounting policies and accounting estimates" (VI) and "VIII. Equity in other entities" in the notes to the financial statements.
As of December 31, 2021, there are 6 structured entities included in the scope of Zhuhai Huajin Capital Co.Ltd(000532) consolidated financial statements, and Zhuhai Huajin Capital Co.Ltd(000532) determines the consolidation scope of consolidated financial statements based on control. Judgment control includes Zhuhai Huajin Capital Co.Ltd(000532) as the investor: (1) having the right to the investee; (2) Enjoy variable returns by participating in relevant activities of the investee; (3) Have the ability to use the power over the investee to affect its return amount. When determining whether the structured entities are included in the scope of the consolidated financial statements, the management evaluates the power of the structured entities with Zhuhai Huajin Capital Co.Ltd(000532) as the manager, comprehensively considers the factors such as the total variable return or risk exposure of the companies within the scope of the consolidated financial statements, and evaluates the variable return obtained by Zhuhai Huajin Capital Co.Ltd(000532) from these structured entities and the relationship between power and variable return. Since the confirmation of whether to control involves the company's major judgment, and its results directly affect the consolidation scope of the consolidated financial statements, we determine the determination of the structured entity included in the consolidation scope of the financial statements as a key audit matter.
2. Audit response
Our important audit procedures for the determination of structured entities included in the consolidation scope of financial statements include:
(1) Understand the procedures and internal control adopted by the management in determining whether the structured entity is included in the consolidation scope, and test whether the internal control is effectively implemented;
(2) Check the rationality of the information used by the management in evaluating the merger criteria of important structured entities according to the relevant contract agreements and other relevant investment service agreements of structured entities newly established or with changes in contract terms in 2021; (3) Evaluate the rationality of the management's judgment on whether Zhuhai Huajin Capital Co.Ltd(000532) has control over each important structured entity and whether it needs to be included in the scope of financial statement consolidation.
Based on the audit work performed, we believe that the company's management's judgment on the inclusion of structured entities into the consolidation scope of financial statements is reasonable.
（2） Measurement of fair value of other non current financial assets
1. Event description
Please refer to the accounting policies described in "IV. important accounting policies and accounting estimates" (x) in the notes to the consolidated financial statements and note 11 of "VI. main items of the consolidated financial statements".
As of December 31, 2021, the balance of other non current financial assets in Zhuhai Huajin Capital Co.Ltd(000532) consolidated financial statements was 67110482353 yuan, accounting for 24.07% of the total assets Zhuhai Huajin Capital Co.Ltd(000532) implemented the new financial instrument standards revised and issued by the Ministry of Finance in 2017 from January 1, 2019, classified equity investments as financial assets measured at fair value and whose changes are included in the current profit and loss, and reported them in the account of other non current financial assets. Since the measurement of fair value of financial assets involves the significant judgment of the management, we take the measurement of fair value of other non current financial assets as the key audit matter.
2. Audit response
Our important audit procedures for the fair value measurement of other non current financial assets include:
(1) Evaluate and test the design and operation effectiveness of internal control related to the fair value measurement of other non current financial assets; (2) For other important non current financial assets, we send a letter to the investee to verify the initial investment amount, shareholding ratio and dividend distribution of the financial assets, so as to comprehensively analyze the authenticity and recoverability of the financial assets;
(3) For other important non current financial assets, analyze and evaluate the authenticity and recoverability of the financial assets by obtaining the industrial and commercial registration information of the invested unit and the latest financial statements;
(4) Review the accuracy of the company's management's valuation of the fair value of other non current financial assets at the end of the period:
① Obtain and review the valuation calculation table of the fair value of each equity investment provided by the company, and review whether the valuation calculation is accurate according to the valuation method of the fair value of each financial asset;
② Obtain and review the valuation calculation table of the fair value of each equity investment provided by the company, and evaluate the valuation basis, valuation procedures and other information of each financial asset;
③ Obtain and review the valuation calculation table of the fair value of each equity investment provided by the company, and check the valuation method of each financial asset;
(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 judgment made by the company's management in the fair value measurement of other non current financial assets is acceptable.
4、 Other information
Zhuhai Huajin Capital Co.Ltd(000532) 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 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
Zhuhai Huajin Capital Co.Ltd(000532) 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 due to fraud or error. When preparing the financial statements, Zhuhai Huajin Capital Co.Ltd(000532) the management is responsible for assessing Zhuhai Huajin Capital Co.Ltd(000532) 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 Zhuhai Huajin Capital Co.Ltd(000532) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Zhuhai Huajin Capital Co.Ltd(000532) .
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 a conclusion on the appropriateness of the going concern assumption used by the management. 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 Zhuhai Huajin Capital Co.Ltd(000532) going concern ability. If we conclude that there are significant uncertainties, the auditing standards require us to draw the attention of report 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 Zhuhai Huajin Capital Co.Ltd(000532) 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 entities or business activities in Zhuhai Huajin Capital Co.Ltd(000532) 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 (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.
Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner) Liang Liang
Beijing, China Certified Public Accountant:
Li Zihong
March 22, 2002
2、 The unit of the statement in the notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Zhuhai Huajin Capital Co.Ltd(000532)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
