Suzhou Thvow Technology Co.Ltd(002564) financial statements and audit report
Year 2021
catalogue
Content page
Audit report 1-4
Consolidated balance sheet 5-6
Company balance sheet 7-8
Consolidated income statement 9
Company income statement 10
Consolidated cash flow statement 11
Cash flow statement of the company 12
Consolidated statement of changes in owner’s equity 13-14
Statement of changes in owner’s equity of the company 15-16
Notes to financial statements 17-131
audit report
Zhong Hui Zi (2022) No. 02499 Suzhou Thvow Technology Co.Ltd(002564) all shareholders:
1、 Audit report on financial statements
(I) audit opinion
We have audited the financial statements of Suzhou Thvow Technology Co.Ltd(002564) (hereinafter referred to as ” Suzhou Thvow Technology Co.Ltd(002564) “), including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, consolidated and company’s statement of changes in owner’s equity, consolidated and company’s cash flow statement 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 consolidated and company’s financial position as of December 31, 2021 and the consolidated and company’s operating results and cash flow in 2021. (II) 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 Suzhou Thvow Technology Co.Ltd(002564) , 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.
(III) 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.
Key audit matters and audit response
1. Recognition of income
Percentage of completion of power engineering general contracting business for power engineering general contracting business:
It is determined according to the proportion of the completed contract workload in the contract (1) understanding, evaluating and testing the estimated total workload of Suzhou Thvow Technology Co.Ltd(002564) and general contracting of Power Engineering (see the key internal control related to financial revenue recognition for details);
Note 3.34 revenue recognition and note 5.42 (2) select important customers, check the sales contracts signed with customers, and evaluate the operating revenue and operating cost). Due to the heavy price of amount Suzhou Thvow Technology Co.Ltd(002564) the appropriateness of revenue recognition policy;
We regard it as a key audit matter. (3) select important and abnormal samples to verify the completed attention of the project from the owner; Gross output value, project settlement node and cumulative payment amount, and confirm the confirmation of sales revenue from subcontractors (see financial statements for total output value of subcontracting, cumulative settlement amount and cumulative collection amount);
Note 3.34 revenue recognition and note 5.42 operating revenue (4) select important and abnormal samples and check the supporting income and operating costs related to revenue recognition, mainly due to sales volume documents, including owner’s output value statement, project schedule, contract, invoice, large, involving a large number of customers and sales segments in many bank receipts, so as to verify the authenticity and accuracy of revenue recognition;
Different regions, so we regard it as a key audit (5) to obtain the total budget of power engineering general contracting business prepared by the management and pay attention to it. Cost, select important projects, review the total budget cost, check the completed projects, and evaluate whether the total budget cost prepared by the management is reliable;
(6) Check the supporting documents related to contract cost confirmation, including contract, warehouse in and warehouse out sheet, unpacking sheet, arrival sheet, subcontracting output value statement, etc., to verify the authenticity and integrity of contract cost confirmation;
(7) Calculate the proportion between the output value confirmed by the owner and the general contract, as well as the proportion between the completed contract cost and the total budget cost, and analyze the accuracy of the completion percentage.
For the business of selling goods:
(1) Understand, evaluate and test Suzhou Thvow Technology Co.Ltd(002564) the key internal control related to the recognition of sales revenue;
(2) Select important customers, check the sales contracts signed with customers, and evaluate the appropriateness of Suzhou Thvow Technology Co.Ltd(002564) revenue recognition policies;
(3) Select important and abnormal samples and inquire the owner about the transaction amount and current balance;
(4) Select important and abnormal samples and check the supporting documents related to revenue recognition, including sales contract, sales invoice, product delivery list, bank receipt, etc., to verify the authenticity and accuracy of revenue recognition;
(5) Check the revenue recognized before and after the balance sheet date, and check the contract, product delivery list and other documents to verify whether the operating revenue is included in the appropriate accounting period.
2. Impairment of goodwill
As shown in note 5.17 to the consolidated financial statements,
As of December 31, 2021, Suzhou Thvow Technology Co.Ltd(002564) he (1) understood and evaluated the company’s key internal control related to goodwill impairment and the design and operation of the original book value of goodwill in the financial statements;
2151083 million yuan, and the amount of goodwill impairment provision is (2) obtain and review the asset group or asset of 388.75 million yuan where the goodwill is prepared by the company. Calculate the recoverable amount of the group portfolio, compare the difference between the book value of the group portfolio and its recoverable amount according to the accounting standards for business enterprises, and review whether the future cash management should calculate the net present value of business flow and the amount of goodwill impairment at least at the end of each year;
Carry out impairment test to determine whether it is necessary to withdraw (3) review whether the company’s judgment on the signs of goodwill impairment is reasonable;
Provision for impairment of goodwill. When the asset group to which the goodwill belongs or (4) review the company’s specific signs of impairment of the asset group or asset group combination to which the goodwill belongs, whether the CM is reasonable and whether the book value of the goodwill is included in the asset group or asset group combination, the company shall timely carry out goodwill impairment test and allocate it appropriately;
Consider the impact of this impairment indication. The management of the company (5) reviews the goodwill impairment test method determined by the experts hired by the company, and compares whether the asset group or asset group and model of goodwill are appropriate;
(6) review whether the company’s allocation of goodwill impairment loss is reasonable, whether it is the combination and the book value of goodwill, and whether the impact of goodwill attributable to minority shareholders has been properly considered;
Impairment test. (7) according to the results of goodwill impairment test, review and evaluate the prediction of the present value of future cash flow of the asset group of goodwill, and whether the management report and disclosure are accurate and appropriate. The prediction layer needs to make major judgments and false statements
Design, especially for the sales growth rate, gross profit rate, expense rate, discount rate, etc. in the future. Due to the significant amount of goodwill, the complex impairment test process and the significant judgment of the company’s management, we pay attention to it as a key audit matter.
(IV) other information
Suzhou Thvow Technology Co.Ltd(002564) Management (hereinafter referred to as “management”) is responsible for other information. Other information includes the information covered in Suzhou Thvow Technology Co.Ltd(002564) 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 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.
(V) 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 going concern ability of Suzhou Thvow Technology Co.Ltd(002564) and disclosing the matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Suzhou Thvow Technology Co.Ltd(002564) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Suzhou Thvow Technology Co.Ltd(002564) .
(VI) 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, it may lead to the impact on Suzhou Thvow Technology Co.Ltd(002564) sustainable operation ability
