China Railway Prefabricated Construction Co.Ltd(300374) 2021 annual financial statements and audit report
China Railway Prefabricated Construction Co.Ltd(300374) 2021 annual financial statements and audit report
Page number
Audit report 1-8
Financial statements of 2021
Consolidated balance sheet 1-2
Consolidated income statement 3
Consolidated cash flow statement 4
Consolidated statement of changes in shareholders’ equity 5
Balance sheet of the company 6-7
Company income statement 8
Cash flow statement of the company 9
Statement of changes in shareholders’ equity 10
Notes to financial statements 11-119
Supplementary information to financial statements 1
China Railway Prefabricated Construction Co.Ltd(300374)
Notes to financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
I. Basic information of the company
China Railway Prefabricated Construction Co.Ltd(300374) (formerly known as “Beijing Hengtong innovation saimu Technology Co., Ltd.”, hereinafter referred to as “the company”) was incorporated in Beijing, China on August 31, 2006. The unified social credit code of the company is 91110 Huawen Media Group(000793) 442369x, and the registered address is No. 87, Pu’an Road, Doudian Town, Fangshan District, Beijing, China.
On October 9, 2010, the company was established as a joint stock limited company with an initial total share capital of 73000000 shares. The total number of new shares listed on the China Securities Regulatory Commission (CSRC) on [2015] was 34000, which was approved by the CSRC to be listed on the Shenzhen Stock Exchange on [2015]. On May 15, 2015, after the deliberation and approval of the general meeting of shareholders, the company increased 10 shares for every 10 shares to all shareholders with capital reserve, with a total of 97340000 shares. In December 2017, with the approval of the 73rd issuance Audit Committee of the gem issuance Audit Committee of China Securities Regulatory Commission in 2017 (zjxk [2017] No. 1871 document), the company allotted 512337 RMB ordinary shares to the original shareholders. As of December 31, 2021, the total share capital of the company was 245912337 shares, with a par value of 1 yuan per share.
On July 14, 2020, China Railway Group Limited(601390) (hereinafter referred to as ” China Railway Group Limited(601390) “) transferred 65184992 shares of the company (accounting for 26.51% of the total share capital of the company) held by the former controlling shareholder sun Zhiqiang and the former second largest shareholder Zhucheng chengchengchengchengchengchenguang Jingtai equity investment fund Co., Ltd. through agreement transfer, Meanwhile, sun Zhiqiang gave up his voting rights of 75297398 shares of the company (accounting for 30.62% of the total share capital of the company). After the completion of the above transaction, the controlling shareholder of the company was changed to China Railway Engineering Group Co., Ltd. (hereinafter referred to as “China Railway Engineering”).
On August 18, 2020, the name of the company was changed from “Beijing Hengtong innovation saimu Technology Co., Ltd.” to ” China Railway Prefabricated Construction Co.Ltd(300374) “. On August 20, 2020, the securities abbreviation of the company was changed from “Hengtong Technology” to ” China Railway Prefabricated Construction Co.Ltd(300374) “, and the securities code remained unchanged.
The main business of the company and its subsidiaries (hereinafter referred to as “the group”) is general construction contracting; Install and sell prefabricated residential parts and wood plastic products; Production of prefabricated residential parts; Processing wood plastic products; Sales of mechanical equipment, molds and movable houses; Technology development, technology transfer, technical consultation (excluding intermediaries), technical services and technical training; Import and export of goods (excluding goods under state-owned trade management), import and export agency and technology import and export; Ordinary freight.
See note VI (1) for the main secondary subsidiaries included in the consolidation scope this year.
The financial statements were approved and issued by the board of directors of the company on March 23, 2022.
China Railway Prefabricated Construction Co.Ltd(300374)
Notes to financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
II. Main accounting policies and accounting estimates
The Group determines specific accounting policies and accounting estimates according to the characteristics of production and operation, which are mainly reflected in the measurement of expected credit loss of receivables and contract assets (Note 2 (10)), the valuation method of inventories (Note 2 (11)), the measurement mode of investment real estate (note 2 (14)), depreciation of fixed assets, amortization of intangible assets (Note 2 (15), (18)), and the judgment standard of impairment of long-term assets (Note 2 (19)) Recognition and measurement of income (note II (23)) and determination of deferred income tax assets and deferred income tax liabilities (note II (25)), etc.
The key judgments, important accounting estimates and key assumptions used by the group in determining important accounting policies are detailed in note II (29). (1) Preparation basis of financial statements
The financial statements are prepared in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards and relevant provisions (hereinafter collectively referred to as “accounting standards for business enterprises”) issued by the Ministry of Finance on February 15, 2006 and the disclosure provisions of the rules for the preparation of information disclosure by companies offering securities to the public No. 15 – General Provisions on financial reports issued by the China Securities Regulatory Commission.
In 2021, the group incurred a net loss of RMB 36103215676. As of December 31, 2021, the current liabilities of the group were higher than the current assets by RMB 48762236217, the monetary capital balance was RMB 16455820413, and the short-term loans, long-term loans due within one year and lease liabilities due within one year were RMB 119000000000 respectively RMB 1000000000 and RMB 78874386. Based on the liabilities and working capital needs of the group, the management has fully considered the existing capital sources of the group. As of December 31, 2021, the loan credit line of banks and financial institutions unused by the group is RMB 282789645000. Based on the above considerations, the board of directors of the company believes that the group has sufficient funds to meet the working capital needs and pay off due debts for no less than 12 months from the balance sheet date. Therefore, the financial statements are prepared on the basis of going concern. (2) Statement of compliance with accounting standards for business enterprises
The financial statements of the company in 2021 comply with the requirements of the accounting standards for business enterprises, and truly and completely reflect the consolidation and financial status of the company as of December 31, 2021, as well as the consolidation and operating results and cash flow of the company in 2021. (3) Fiscal year
The fiscal year is from January 1 to December 31 of the Gregorian calendar.
(4) Business cycle
Business cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents. Due to the long construction period of the project, the business cycle of the group’s prefabricated construction services may exceed one year, and the business cycle of other businesses is usually less than one year.
China Railway Prefabricated Construction Co.Ltd(300374)
Notes to financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
II. Major accounting policies and accounting estimates (Continued) (5) functional currency
The recording currency of the company is RMB. The company’s subsidiaries determine their recording currency according to the main economic environment in which they operate. The currency used by the group in preparing the financial statements is RMB. (6) Business combination (a) business combination under the same control
The merger consideration paid and net assets obtained by the group are measured at book value. If the combined party is acquired by the final controller from a third party in previous years, it is based on the book value of the combined party’s assets and liabilities (including the goodwill formed by the final controller’s acquisition of the combined party) in the final controller’s consolidated financial statements. The difference between the book value of the net assets obtained by the group and the book value of the merger consideration paid shall be adjusted to the capital reserve (capital stock premium); If the capital reserve (capital stock premium) is insufficient to offset, the retained earnings shall be adjusted. The expenses incurred in the current period are directly included in the relevant profits and losses. The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities. (b) Business combination not under the same control
The combination costs incurred by the group and the identifiable net assets obtained in the combination are measured at the fair value on the acquisition date. The difference between the combination cost and the fair value of the identifiable net assets obtained by the acquiree on the acquisition date is recognized as goodwill; The difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination shall be included in the current profits and losses. The directly related expenses incurred for business combination shall be included in the current profit and loss when incurred. The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities.
For business combinations not under the same control realized step by step through multiple transactions, in the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be re measured according to the fair value of the equity on the acquisition date, and the difference between the fair value and its book value shall be included in the current investment income; If the equity of the acquiree held before the acquisition date involves other comprehensive income calculated by the equity method and other changes in owner’s equity other than net profit and loss, other comprehensive income and profit distribution, the related changes in other comprehensive income and other owner’s equity shall be transferred to the current income on the acquisition date, Except for other comprehensive income arising from the change of net liabilities or net assets of the investee’s remeasurement of the defined benefit plan. Goodwill is the difference between the sum of the fair value of the purchased Party’s equity held before and the fair value of the consideration paid on the acquisition date and the fair value share of the identifiable net assets of the subsidiary obtained on the acquisition date.
China Railway Prefabricated Construction Co.Ltd(300374)
Notes to financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
II. Major accounting policies and accounting estimates (Continued) (7) preparation method of consolidated financial statements
When preparing the consolidated financial statements, the consolidation scope includes the company and all subsidiaries.
From the date of obtaining the actual control of the subsidiary, the group began to incorporate it into the scope of consolidation; It shall cease to be included in the scope of consolidation from the date of loss of actual control. Subsidiaries acquired through business combination under the same control shall be included in the scope of the company’s merger from the date when they are under the control of the ultimate controller with the company, and the net profit realized before the merger date shall be reflected in a separate item in the consolidated income statement.
After obtaining the control over the subsidiary, obtain all or part of the minority equity of the subsidiary owned by the minority shareholders from the minority shareholders of the subsidiary. In the consolidated financial statements, the assets and liabilities of the subsidiary are reflected by the amount continuously calculated from the purchase date or the consolidation date. For the difference between the newly increased long-term equity investment due to the purchase of minority equity and the share of net assets of the subsidiary calculated according to the newly increased shareholding ratio, the capital reserve shall be adjusted. If the amount of capital reserve (capital premium or share capital premium) is insufficient to offset, the retained earnings shall be adjusted.
Dispose of part of the investment in the subsidiary without losing control. In the consolidated financial statements, the difference between the disposal price and the share of net assets of the subsidiary continuously calculated from the purchase date or consolidation date corresponding to the disposal investment shall be adjusted to the capital reserve (capital premium or equity premium). If the amount of capital reserve is insufficient to offset, the retained earnings shall be adjusted.
In the consolidated financial statements, if the control over the original subsidiary is lost due to the disposal of part of the equity investment or other reasons
