Yunding Technology Co.Ltd(000409)
Annual financial report for 2021
March 2022
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: March 24, 2022
Name of Auditor: China Audit Asia Pacific Certified Public Accountants (special general partnership)
Audit report document No.: zsapssz (2022) 000071
Name of certified public accountant Xie Le, Ren Dejun
Body of audit report
1、 Audit opinion
We have audited the financial statements of Yunding Technology Co.Ltd(000409) (hereinafter referred to as ” Yunding Technology Co.Ltd(000409) “), 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 the company as of December 31, 2021 and the operating results and cash flow of 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 Yunding Technology Co.Ltd(000409) , 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.
(I) related party transactions and related party accounts receivable
1. Event description
Please refer to “XII. Related parties and related transactions” in this chapter Yunding Technology Co.Ltd(000409) in this year, the amount of labor services and goods sold to related parties was 36802280 yuan, and the accounts receivable of related parties on the balance sheet date was 267830500 yuan. In view of the large amount of related party transactions and accounts receivable from related parties, whether they actually occur or exist has a great impact on the financial statements. Therefore, we regard related party transactions and related party accounts receivable as key audit matters. 2. Audit response
We have mainly implemented the following audit procedures for the above related party transactions and accounts receivable of related parties:
(1) Understand and evaluate the design and operation effectiveness of key internal controls related to related party transactions and accounts receivable of related parties;
(2) Obtain the list of related parties prepared by the management and check with the information obtained from other public channels;
(3) Obtain the details of related party transactions and accounts receivable of related parties prepared by the management, understand the business reasons of related party transactions, and verify the fairness of related party transactions;
(4) Take samples and interview important related party counterparties to understand the commercial necessity, price fairness and actual progress of related party transactions;
(5) Check related contracts or agreements, invoices, acceptance documents and other relevant materials related to related party transactions;
(6) Take samples and implement letter confirmation procedures for important related party transactions and accounts receivable of related parties;
(7) Review the accuracy and appropriateness of the presentation and disclosure of related transactions and related party accounts receivable in the financial statements.
4、 Other information
Yunding Technology Co.Ltd(000409) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the 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 the going concern ability of Yunding Technology Co.Ltd(000409) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Yunding Technology Co.Ltd(000409) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Yunding Technology Co.Ltd(000409) .
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 to design appropriate audit procedures.
(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 Yunding Technology Co.Ltd(000409) 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 Yunding Technology Co.Ltd(000409) inability to continue as a going concern.
(V) evaluate the overall presentation, structure and content (including disclosure) 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 Yunding Technology Co.Ltd(000409) in order 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 statements to the management on compliance with the professional ethics requirements related to independence, and communicate with the management on 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 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 notes to the financial statements is: yuan 1. Preparation unit of the consolidated balance sheet: Yunding Technology Co.Ltd(000409)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 123361472032 Xiamen R&T Plumbing Technology Co.Ltd(002790) 4191
Provision for settlement
Lending funds
Trading financial assets 2038200000
Derivative financial assets
Notes receivable
Accounts receivable 38823222337 Hhc Changzhou Corp(301061) 37611
Receivables financing 85583728874258564910
Prepayment 2054395794727503236
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 34401413143612364080
Including: interest receivable 171951389
Dividends receivable
Purchase of resale financial assets
Inventory 1953669227110317041878
Contract assets 10818625341030288035
Assets held for sale
Non current assets due within one year
Other current assets 286730218745302041
Total current assets 8815576455870825105982
Non current assets:
Loans and advances
Debt investment
Other debt investment
long-term receivables
Long term equity investment 2899663728213802
Investment in other equity instruments 57133699215658146278
Other non current financial assets
Investment real estate
fixed assets
