Chinese draft Xinjiang Goldwind Science And Technology Co.Ltd(002202) financial statements and audit report for the year ended December 31, 2021
Xinjiang Goldwind Science And Technology Co.Ltd(002202) Chinese draft financial statements and audit report for the year ended December 31, 2021
Content page
Audit report 1 – 6
Consolidated balance sheet 7 – 9
Company balance sheet 10 – 11
Consolidated income statement 12 – 13
Company income statement 14
Consolidated cash flow statement 15 – 16
Cash flow statement of the company 17 – 18
Consolidated statement of changes in shareholders’ equity 19 – 20
Statement of changes in shareholders’ equity 21 – 22
Notes to the financial statements 23 – 195
Supplementary information 196
Chinese draft
audit report
DSB (s) Zi (22) No. p02251 (Page 1 of 6) Xinjiang Goldwind Science And Technology Co.Ltd(002202) all shareholders:
1、 Audit opinion
We have audited the financial statements of Xinjiang Goldwind Science And Technology Co.Ltd(002202) (hereinafter referred to as ” Xinjiang Goldwind Science And Technology Co.Ltd(002202) “), including the consolidated and the company’s balance sheet as of December 31, 2021, the consolidated and the company’s income statement, the consolidated and the company’s cash flow statement, the consolidated and the company’s statement of changes in shareholders’ equity and the 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 the company’s financial position as of December 31, 2021 and the consolidated and the company’s operating results and consolidated and the company’s 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 Xinjiang Goldwind Science And Technology Co.Ltd(002202) , 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 financial statements of this year 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
Chinese draft audit report – continued
DSB (s) Zi (22) No. p02251 (page 2 of 6) III. key audit matters – continued
（1） Impairment of accounts receivable
1. Item description
As shown in notes V and 3 to the consolidated financial statements, as of December 31, 2021, Xinjiang Goldwind Science And Technology Co.Ltd(002202) the book value of accounts receivable was RMB 23585356000, accounting for 19.76% of the total assets Xinjiang Goldwind Science And Technology Co.Ltd(002202) according to the impairment method specified in the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments, based on the historical credit loss, applying the specific forward-looking factors of the debtor and economic environment to adjust, establish a credit loss matrix, consider the credit risk characteristics of different customers, and evaluate the expected credit loss of accounts receivable on a single and combined basis, Provision for impairment of accounts receivable is made based on the expected credit loss of the whole duration.
Determining the amount of provision for loss of accounts receivable involves significant judgment and estimation of Xinjiang Goldwind Science And Technology Co.Ltd(002202) Management (“management”).
2. Audit response
Our main audit procedures for the impairment of accounts receivable include:
(1) Test the internal control related to the impairment of accounts receivable;
(2) Review and evaluate the appropriateness of the expected credit loss model and the rationality of the expected credit loss rate used by the management, and consider the influence of forward-looking factors;
(3) Consider whether there are signs of impairment caused by special risks in long-term accounts receivable;
(4) Select a sample of accounts receivable for which impairment provision is made individually, and review the basis and rationality of the management’s estimation of the expected cash flow; For the accounts receivable for which the impairment provision is withdrawn according to the combination, review the judgment basis and rationality of the management on whether the customers in the same aging combination have common credit risk characteristics, and check the accuracy of the aging of accounts receivable.
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Audit report – continued
DSB (s) Zi (22) No. p02251 (page 3 of 6) III. key audit matters – continued
（2） Provision for product quality deposit
1. Item description
As shown in notes V and 36 to the consolidated financial statements, as of December 31, 2021, the balance of product quality deposit is about RMB 4986525000, mainly including various quality assurance services provided by Xinjiang Goldwind Science And Technology Co.Ltd(002202) for the performance of the delivered wind turbine products to its customers within the 2-5-year quality assurance period. During the warranty period, Xinjiang Goldwind Science And Technology Co.Ltd(002202) must provide free maintenance and parts replacement services to ensure product quality. The cost related to the warranty service is estimated by the management based on the sales data and warranty rate of the wind turbine products. If the estimate changes, it will have a significant impact on the balance of product quality guarantee and quality assurance expenses in the financial statements.
2. Audit response
Our main audit procedures for the provision of product quality margin include:
(1) Test the internal control related to the provision of product quality deposit;
(2) Evaluate the rationality of the withdrawal method of Xinjiang Goldwind Science And Technology Co.Ltd(002202) product quality margin, and evaluate the rationality of the assumptions used by Xinjiang Goldwind Science And Technology Co.Ltd(002202) to determine the product quality margin by comparing historical data;
(3) Verify the appropriateness of the data used by the management in the calculation by checking the quality assurance terms in the relevant sales contracts; (4) Check the arithmetical correctness of quality deposit withdrawal;
(5) Test the actual consumption of product quality deposit in 2021, and review the amount of product quality deposit that has been offset due to non consumption after the expiration of the warranty period.
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Audit report – continued
DSB (s) Zi (22) No. p02251 (page 4 of 6) IV. other information
Xinjiang Goldwind Science And Technology Co.Ltd(002202) management is responsible for other information. Other information includes the information covered in Xinjiang Goldwind Science And Technology Co.Ltd(002202) 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.
5、 Responsibilities of management and governance for financial statements
Xinjiang Goldwind Science And Technology Co.Ltd(002202) the management is responsible for preparing the financial statements in accordance with 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 due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Xinjiang Goldwind Science And Technology Co.Ltd(002202) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Xinjiang Goldwind Science And Technology Co.Ltd(002202) , terminate the operation or has no other realistic choice.
The financial management is responsible for the supervision of the financial reporting process.
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Audit report – continued
DSB (s) Zi (22) No. p02251 (page 5 of 6) VI. CPA’s responsibility 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 evaluate the risk of material misstatement of financial statements due to fraud or error, and design
