Allwinnertech Technology Co.Ltd(300458)
audit report
catalogue
1、 Audit report Page 1-6 II. Financial statements Page 7-14
(I) consolidated balance sheet Page 7
(II) balance sheet of the parent company Page 8
(III) consolidated income statement Page 9
(IV) profit statement of the parent company Page 10
(V) consolidated cash flow statement Page 11
(VI) cash flow statement of the parent company Page 12
(VII) consolidated statement of changes in owner’s equity Page 13
(VIII) statement of changes in owner’s equity of the parent company Page 14 III. notes to financial statements Page 15-85
Audit report
TJS [2022] No. 3-145
Allwinnertech Technology Co.Ltd(300458) all shareholders:
1、 Audit opinion
We have audited the financial statements of Allwinnertech Technology Co.Ltd(300458) (hereinafter referred to as Allwinnertech Technology Co.Ltd(300458) 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 owner’s equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company’s financial position of Allwinnertech Technology Co.Ltd(300458) company as of December 31, 2021, as well as 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 Allwinnertech Technology Co.Ltd(300458) company 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.
（1） Inventory falling price reserves
1. Event description
See notes III (XI) 3 and V (I) 7 to the financial statements for relevant information disclosure.
As of December 31, 2021, the book balance of inventory of Allwinnertech Technology Co.Ltd(300458) company is RMB 54159822648, the provision for inventory falling price is RMB 6265129924, and the book value is RMB 47894692724.
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory falling price reserves are withdrawn according to the difference between inventory category cost and net realizable value The management of Allwinnertech Technology Co.Ltd(300458) company (hereinafter referred to as the management) determines the estimated selling price according to the selling price agreed in the contract and the market selling price of the same or similar products on the basis of considering the purpose of holding the inventory, and determines the net realizable value of the inventory according to the estimated selling price minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes.
Since the amount of inventory is significant and the determination of net realizable value of inventory involves significant management judgment, we determine the net realizable value of inventory as a key audit event.
2. Audit response
For the net realizable value of inventories, our audit procedures mainly include:
(1) Understand the key internal controls related to the net realizable value of inventory, evaluate the design of these controls, determine whether they are implemented, and test the operation effectiveness of relevant internal controls;
(2) Review the management’s forecast of net realizable value of inventories and actual operating results in previous years, and evaluate the accuracy of the management’s previous forecasts;
(3) Review the management’s forecast of the estimated selling price of inventory by sampling, and compare the estimated selling price with the situation after the period;
(4) Evaluate the rationality of the management’s estimation of the costs, selling expenses and relevant taxes to be incurred from the completion of the inventory;
(5) Test whether the management’s calculation of the net realizable value of inventory is accurate;
(6) Combined with inventory supervision, check whether there are long stock ages, changes in technology or market demand in the ending inventory, and evaluate whether the management has reasonably estimated the net realizable value;
(7) Check whether the information related to the net realizable value of inventories has been properly presented in the financial statements. （2） Revenue recognition
1. Event description
The operating revenue of Allwinnertech Technology Co.Ltd(300458) company mainly comes from the R & D and sales of integrated circuits. In 2021, the operating revenue of Allwinnertech Technology Co.Ltd(300458) company was 206535681873 yuan.
Time and method of revenue recognition:
(1) Chip sales business
The company’s chip product sales business belongs to the performance obligation to be performed at a certain point in time. The domestic sales revenue is recognized when the company transports the products to the delivery place agreed in the contract and the customer confirms the acceptance, has received the price or obtained the right to receive the payment, and the relevant economic benefits are likely to flow in. Export revenue is recognized when the company has declared the products according to the contract, obtained the bill of lading, received the payment for goods or obtained the collection power, and the relevant economic benefits are likely to flow in. (2) Software sales revenue
The company’s software sales business is a performance obligation performed at a certain point in time. It is recognized when the company sends the software program to the customer and the customer confirms its acceptance, has received the price or obtained the right to receive the payment, and the relevant economic benefits are likely to flow in.
As operating revenue is one of the key performance indicators of Allwinnertech Technology Co.Ltd(300458) company, there may be inherent risks that the management may achieve specific goals or expectations through inappropriate revenue recognition. Therefore, we identified revenue recognition as a key audit matter.
2. Audit response
For revenue recognition, our audit procedures mainly include:
(1) Understand the key internal controls related to revenue recognition, evaluate the design of these controls, determine whether they are implemented, and test the operation effectiveness of relevant internal controls;
(2) Check the main sales orders, identify the terms related to the transfer of main risks and rewards on the ownership of goods, and evaluate whether the revenue recognition policy complies with the provisions of the accounting standards for business enterprises;
(3) Implement substantive analysis procedures for operating revenue and gross profit margin on a monthly basis, products, customers, etc., identify whether there are significant or abnormal fluctuations, and find out the causes of fluctuations;
(4) Check the supporting documents related to revenue recognition by sampling, including sales order, sales invoice, delivery note, transportation note, export declaration form, bill of lading, customer receipt and other supporting documents;
(5) Combined with the letter of accounts receivable, the current sales volume is confirmed to the main customers by sampling;
(6) Check the operating income recognized before and after the balance sheet date to the delivery order, customer receipt and other supporting documents by sampling, and evaluate whether the operating income is recognized in an appropriate period;
(7) Check whether the information related to operating income has been properly presented in the financial statements.
4、 Other information
The management is responsible for other information. Other information includes the information covered in the 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 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 evaluating the sustainable operation ability of Allwinnertech Technology Co.Ltd(300458) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless liquidation is planned, operation is terminated or there is no other realistic choice.
Allwinnertech Technology Co.Ltd(300458) corporate governance (hereinafter referred to as governance) is responsible for supervising the financial reporting process of Allwinnertech Technology Co.Ltd(300458) 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 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 in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
（3） Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
（4） Draw conclusions on the appropriateness of management’s use of going concern assumptions. 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 the sustainable operation ability of Allwinnertech Technology Co.Ltd(300458) company. 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 cause Allwinnertech Technology Co.Ltd(300458) company to be unable to continue its business.
（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 Allwinnertech Technology Co.Ltd(300458) company to express audit opinions 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 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. Tianjian Certified Public Accountants (special general partnership) Chinese certified public accountant: he Xiaoming
(project partner)
Hangzhou, China Certified Public Accountant: Yang Lan
March 24, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Allwinnertech Technology Co.Ltd(300458) unit: RMB
End of year amount of assets and end of year amount of liabilities and owner’s equity
No. (or shareholders’ equity)
Current assets:
