Everbright Securities Company Limited(601788) audited financial statements for 2021
Everbright Securities Company Limited(601788)
catalogue
Page
1、 Audit report 1 – 13
2、 Audited financial statements
Consolidated balance sheet 14 – 15
Consolidated income statement 16 – 17
Consolidated statement of changes in shareholders’ equity 18 – 19
Consolidated cash flow statement 20 – 21
Company balance sheet 22 – 23
Company income statement 24 – 25
Statement of changes in shareholders’ equity 26 – 27
Cash flow statement of the company 28 – 29
Notes to financial statements 30 – 192
Supplementary information
1. Detailed statement of current non recurring profit and loss 1
2. Differences in accounting data under domestic and foreign accounting standards 1
3. Return on net assets and earnings per share 1 – 2
audit report
Ernst & Young Huaming (2022) SZ No. 61291627b01 Everbright Securities Company Limited(601788) Everbright Securities Company Limited(601788) all shareholders:
1、 Audit opinion
We have audited the financial statements of Everbright Securities Company Limited(601788) , including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, statement of changes in shareholders’ equity, cash flow statement and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements of Everbright Securities Company Limited(601788) are prepared in accordance with the accounting standards for business enterprises in all major aspects, and fairly reflect the consolidated and company’s financial position as of December 31, 2021 and the consolidated and 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 Everbright Securities Company Limited(601788) , 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. Our description of how to deal with each of the following matters in the audit is also against this background.
We have fulfilled the responsibilities described in the “responsibilities of certified public accountants for the audit of financial statements” section of this report, including those related to these key audit matters. Accordingly, our audit work includes the implementation of audit procedures designed to deal with the risk of material misstatement of the assessed financial statements. The results of our audit procedures, including the procedures for the following key audit matters, provide a basis for our overall audit opinion on the financial statements.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61291627b01 Everbright Securities Company Limited(601788) III. key audit matters (Continued)
Key audit matters how to deal with them in the audit
Confirmation of estimated liabilities the audit procedures related to the confirmation of estimated liabilities of Everbright Capital Investment Co., Ltd., a wholly-owned subsidiary of your group. The main company (hereinafter referred to as “Everbright capital”) is mainly engaged in private equity investment fund business, Everbright immersion Investment Management (Shanghai) Co., Ltd. (hereinafter referred to as “Everbright immersion”) inspection and investment Litigation and dispute related companies are wholly-owned subsidiaries of Everbright capital. Letters of agreement, internal approval and legal exchanges with Everbright Baptist Hui and Fengfeng Group were issued in April 2016;
Fengfeng (Tianjin) investment management, a wholly-owned subsidiary of the company, obtained and reviewed the litigation, arbitration and property department’s signing of preservation with each limited partner as the general partner of the company and the MPS project of Shanghai qunchang Financial Services Co., Ltd. known by the management, and checked the relevant legal document Shanghai Jinxin investment consulting partnership (limited contract) and other relevant information;
(partnership) limited partnership agreement, jointly initiated the establishment of Shanghai Baptist, obtained and reviewed the evaluation results of the management on the above litigation Xinxin investment consulting partnership (limited partnership) (the following brief and disputes);
It is called “Jinxin fund”), and acquires 65% equity of S.A. (hereinafter referred to as “MPs”) company that discloses whether the disclosure of overseas MP & Silva holding meets the accounting standards for business enterprises by setting up a special purpose vehicle to evaluate the phase of estimated liabilities in the financial statements.
Please. Everbright Baptist Hui is the executive partner of Baptist Xin fund. Priority limited partners of Jinxin fund contributed RMB 3.2 billion, intermediate limited partners contributed RMB 1 billion and inferior limited partners contributed RMB 1 billion. The interested parties of the priority limited partners of Jinxin fund respectively presented to your group a balance replenishment letter sealed by Everbright capital, promising that if the priority limited partners could not exit, Everbright capital would bear the corresponding balance replenishment obligation. An intermediate limited partner of Jinxin fund presented a supplementary agreement signed with all general partners, which agreed that all general partners would compensate for the difference between the principal and expected income that the intermediate limited partner failed to repay. In addition, some intermediate limited partners of Jinxin fund have tort liability disputes between Jinxin fund and Everbright capital.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61291627b01 Everbright Securities Company Limited(601788) III. key audit matters (Continued)
Key audit matters how to deal with them in the audit
Recognition of estimated liabilities (Continued) based on the information currently available, the results of adjudicated litigation, the results of arbitration awards and the progress of litigation, the group recognized the MPS invested by Jinxin fund in the consolidated financial statements as of December 31, 2021
The estimated liabilities related to the project are RMB
5284293000 yuan. As the relevant litigation is still in progress and the ultimate responsibility of your group involves significant judgment and estimation of the management, and the amount of relevant estimated liabilities is important to the asset liability status and operating results of the consolidated financial statements, we recognize the recognition of estimated liabilities as key audit matters. Please refer to the accounting policies described in note “III. important accounting policies and accounting estimates” 25, the significant accounting judgments and estimates described in 37, note “v. notes to main items of consolidated financial statements” 34 and note “XVII. Description of other important matters” 3 (1).
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61291627b01 Everbright Securities Company Limited(601788) III. key audit matters (Continued)
Key audit matters how to deal with them in the audit
Evaluation of expected credit loss on each balance sheet date, your group makes relevant audit procedures on the basis of expected credit and evaluation of financed funds, purchase of resale financial assets, loss of financed funds, purchase of resale funds, debt investment and other debt investment impairment reserves, financing assets, debt investment and other debt investment, mainly including: performing impairment test and confirming loss reserves.
Understand and test the financed funds and resale finance. If the credit risk has not increased significantly since the initial recognition, the impairment of assets, creditor’s rights investment and other creditor’s rights investment is increased, your group measures the loss provision according to the amount of long-term credit loss equivalent to the internal control design and operation of the expected withdrawal process in the next 12 months; If effectiveness;
Credit risk has increased significantly since initial recognition. You obtain and evaluate the management’s plan for the impairment stage. The group measures the loss reserves according to the standard equivalent to the expected credit score in the whole duration and the amount of loss used to determine the amount of impairment loss; If the rationality of the used expected credit loss model; In case of credit loss, the group confirms that the sample is selected throughout the duration, and the impairment stage of the sample is divided into the credit impairment within the balance sheet. When evaluating the expected credit result and the standard of the expected credit loss model, your group considers all reasonable and based credit comparison;
Information, including forward-looking information. Select a sample to evaluate the rationality of the key parameters used by the management in calculating the impairment loss. On December 31, 2021, the group’s consolidated financial statements were estimated, including the default rate, the default loss rate, the net book value of the financed funds in the risk statement as RMB exposure, discount rate, forward-looking adjustment factors, etc; 48445768000 yuan, of which the balance of impairment provision is 613883000 yuan in combination with market practice and historical loss experience. The rationality of the calculation results of the management impairment model; Evaluate whether the disclosure related to the impairment of the net book value of financial assets purchased for resale in the consolidated financial statements of the group on December 31, 2021 for the financed funds and purchases meets the requirements of the accounting standard for the balance of impairment provision of 6792387000 yuan.
RMB 1390462 thousand. As of December 31, 2021, the net book value of debt investment in the consolidated financial statements of your group was 4136619000 yuan, of which the balance of impairment provision was 228585000 yuan. As of December 31, 2021, the net value of other debt investments in the consolidated financial statements of your group was RMB 13098079000, of which the balance of impairment provision was RMB 56042000.
