Chongqing Certified Public Accountants Association
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Anti counterfeiting identification code: 02203241 01 Shanghai Shibei Hi-Tech Co.Ltd(600604) 61 report document No.: Zhong Kang Hui Biao Shen Bao Zi (2022) No. 15 Customer Name: Chongqingyukaifaco.Ltd(000514) firm name: Chongqing Kanghua Certified Public Accountants (special general partnership) report type: statement audit unqualified opinion report date: 202203-24 report entry date: 202203-24 signature certified Public Accountants: Luo Tao, Xu Jili
Note: the information on this page only proves that the report has been reported by Chongqing Institute of certified public accountants and cannot be regarded as any form of guarantee for the authenticity of the report by Chongqing Institute of certified public accountants.
catalogue
1、 Audit report Page 1-6 II. Financial statements Page 7-18
(I) consolidated balance sheet Page 7 – 8
(II) balance sheet of the parent company Page 9-10
(III) consolidated income statement Page 11
(IV) profit statement of the parent company Page 12
(V) consolidated cash flow Page 13
(VI) cash flow statement of the parent company Page 14
(VII) changes in consolidated owner’s equity Page 15-16
(VIII) statement of changes in owner’s equity of the parent company Page 17-18
3、 Notes to the financial statements Page 19-99
Audit report
Zhong Kang Hui Biao Shen Bao Zi (2022) No. 15
Chongqingyukaifaco.Ltd(000514) all shareholders:
1、 Audit opinion
We have audited the financial statements of Chongqingyukaifaco.Ltd(000514) (hereinafter referred to as Chongqingyukaifaco.Ltd(000514) 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 provisions of the accounting standards for business enterprises in all material aspects and fairly reflect the consolidated and parent company’s financial position of Chongqingyukaifaco.Ltd(000514) company as of December 31, 2021 and 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 Chongqingyukaifaco.Ltd(000514) 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） Revenue recognition
1. Event description
See notes III (XXV) and V (XXXII) to the financial statements for relevant information disclosure. The operating income of Chongqingyukaifaco.Ltd(000514) company mainly comes from the sales income of commercial houses, the income of convention and exhibition services, the income of house leasing, the income of operating right of Shihuang tunnel and the income of property services. In 2021, Chongqingyukaifaco.Ltd(000514) company’s operating revenue amounted to RMB 118685473232, including commercial housing sales revenue of RMB 97225967565, accounting for 81.92% of the operating revenue Chongqingyukaifaco.Ltd(000514) the company recognizes the sales revenue of commercial houses when all the following conditions have been met:
(1) The commercial housing sales contract has been signed, and the sales contract has been filed with the functional department of the government;
(2) The developed products have been completed and accepted, and the legal procedures for house delivery to the owner have been obtained;
(3) According to the method of receiving the house notice agreed in the sales contract, publish it in the newspaper or send the house delivery notice to the owner; (4) Obtain the owner’s payment certificate (usually receive the full payment of the sales contract).
As operating revenue is one of the key performance indicators of Chongqingyukaifaco.Ltd(000514) company, there may be inherent risk that the management of Chongqingyukaifaco.Ltd(000514) company may achieve specific goals or expectations through inappropriate revenue recognition. Therefore, we identified revenue recognition as a key audit matter.
2. Audit response
For the income recognition of real estate development projects, our audit procedures mainly include:
(1) Understand the key internal controls related to the revenue recognition of real estate development projects, evaluate the design of these controls, determine whether they have been implemented, and test the operation effectiveness of relevant internal controls;
(2) Check the standard real estate sales contract terms of Chongqingyukaifaco.Ltd(000514) company to evaluate whether the income recognition policies of Chongqingyukaifaco.Ltd(000514) company related to real estate development projects meet the requirements of relevant accounting standards;
(3) Select samples for the items to confirm the real estate sales revenue in 2021, and check the sales contract and supporting documents that can prove that the real estate has met the delivery conditions (such as completion filing and acceptance certificate, house receiving announcement, house receiving notice, etc.) to evaluate whether the relevant real estate sales revenue has been recognized in accordance with the income recognition policy of Chongqingyukaifaco.Ltd(000514) company;
(4) For the items that confirm the real estate sales revenue before and after the balance sheet date, select samples and check the supporting documents that can prove that the real estate has met the delivery conditions (such as completion filing and acceptance registration certificate, house receiving announcement and house receiving notice), so as to evaluate whether the relevant real estate sales revenue is recognized in an appropriate period;
(5) Check the sales contract account of Chongqingyukaifaco.Ltd(000514) company, check the contract liabilities reported at the end of the period for whether there is any income received but not carried forward, and evaluate whether the relevant real estate sales income is recognized in an appropriate period;
(6) Analyze the sales price of Chongqingyukaifaco.Ltd(000514) company and check whether the change trend of real estate sales price is consistent with the trend of unilateral selling price obtained from public information.
(II) impairment of inventories
1. Event description
See notes III (x) and V (VI) to the financial statements for relevant information disclosure. As of December 31, 2021, Chongqingyukaifaco.Ltd(000514) company’s inventory book balance was 556130316703 yuan, the provision for falling price was 1886681787 yuan, and the book value was 554243634916 yuan.
Inventory composition mainly includes development products and development costs.
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 the cost of a single inventory and the net realizable value. On the basis of considering the purpose of holding the inventory, the management determines the estimated selling price according to the historical selling price, the market selling price of the same or similar products and the future market trend, and determines the net realizable value of the inventory according to the amount of the estimated selling price minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
As the amount of inventory is significant and the determination of net realizable value of inventory involves significant management judgment, we determine the impairment of inventory as a key audit event.
2. Audit response
For inventory impairment, our audit procedures mainly include:
(1) Understand the key internal controls related to inventory impairment, 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 historical data, future situation, market information, etc;
(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) In combination with inventory supervision, conduct on-site observation on inventory items, check whether there are shutdown, uncompleted and other situations of inventory items, and evaluate whether the management has reasonably estimated the net realizable value;
(7) Check the settlement and contract newly added this year, and compare it with the estimated cost of the contract to ensure the authenticity and integrity of the book cost;
(8) Check whether the information related to inventory impairment has been properly presented in the financial statements.
4、 Other information
Chongqingyukaifaco.Ltd(000514) the management of the company (hereinafter referred to as 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 Chongqingyukaifaco.Ltd(000514) 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.
The management is responsible for supervising the financial reporting process of Chongqingyukaifaco.Ltd(000514) 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:
(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 in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(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 the sustainable operation ability of Chongqingyukaifaco.Ltd(000514) 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 Chongqingyukaifaco.Ltd(000514) company to be unable to continue its business.
(V) evaluate the overall presentation, structure and content 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 Chongqingyukaifaco.Ltd(000514) 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 communicate with the management on the planned audit scope, schedule and major audit findings, including
Chongqingyukaifaco.Ltd(000514)
Notes to the consolidated financial statements of 2021
1、 Basic information of the company
Chongqingyukaifaco.Ltd(000514) (hereinafter referred to as the company or the company), formerly known as Chongqing Real Estate Development Co., Ltd., was approved by Chongqing Economic System Reform Commission yugaiwei (1992) No. 33 document and changed from the original Chongqing Housing Development and construction company into a joint-stock company in May 1992. It was registered with Chongqing Administration for Industry and Commerce and headquartered in Chongqing. The company now holds a business license with a unified social credit code of 915 China Vanke Co.Ltd(000002) 02809457f, with a registered capital of 84377096500 yuan and a total of 843770965 shares (par value of 1 yuan per share), all of which are circulating shares with unlimited sales conditions. The company’s shares were listed and traded in Shenzhen Stock Exchange in July 1993.
The company belongs to the real estate development industry. Business scope: real estate development (class I), house sales and leasing, real estate information consulting, engaging in construction related business (undertaking business within the approved scope of administrative license after obtaining administrative license), site leasing, land remediation and demolition entrusted by Chongqing urban construction investment company (now Chongqing urban construction investment (Group) Co., Ltd. (hereinafter referred to as Chongqing urban investment)), Operation and management of exhibition venues, undertaking exhibitions (excluding foreign economic and technological exchanges), venue leasing, parking services, hotel management and consulting services, and selling hotel equipment and hotel supplies.
The financial statements have been approved by the ninth board of directors of the company on March 24, 2022
