2021
Financial Report
Shantui Construction Machinery Co.Ltd(000680)
two О March 2002
Body of audit report
Shantui Construction Machinery Co.Ltd(000680) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shantui Construction Machinery Co.Ltd(000680) (hereinafter referred to as "the 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 shareholders' equity and notes to 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 financial position of your company as of December 31, 2021 and the operating results and cash flows of your company and the parent company 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 your 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.
(I) income
1. Item description
As stated in notes 3, 31 and 5 and 44 of the financial statements, the revenue of your company in 2021 is 9159943 million yuan. As revenue recognition is one of the key performance indicators of your company, there may be inherent risks for the management of the company to achieve specific objectives or expectations through inappropriate revenue recognition, and whether the revenue recognition is appropriate will also have a significant impact on the operating results of your company, Therefore, we regard revenue recognition as a key audit matter.
2. Audit response
Our main audit procedures are as follows:
(1) Evaluate and test the rationality of the company's internal control design related to sales and collection and the effectiveness of implementation;
(2) Understand the company's revenue type, check the corresponding contract signing method and content, and evaluate the rationality of the company's revenue recognition; (3) Implement substantive analysis procedures to compare and analyze the rationality of the company's income changes in each period;
(4) Combined with the audit of accounts receivable, select the company's main customers to confirm the current sales volume, and select the sales contracts and supplementary agreements signed by important customers to check and verify the authenticity and accuracy of the revenue amount confirmed by the management;
(5) Select the revenue transaction samples recorded before and after the balance sheet date and sell them in China, focusing on the product receipt issued by the customer and the payment collection after the period; For foreign sales, check the data recorded in the customs declaration system, pay attention to the customs declaration date and settlement method, so as to verify the accuracy and authenticity of the revenue amount confirmed by the management and whether it is recorded in the appropriate accounting period. (II) inventory falling price reserves
1. Item description
As stated in notes 3, 15 and 5 and 8 of the financial statements, as of December 31, 2021, the inventory balance of your company was 2020178900 yuan, and the inventory falling price reserve of 337624 million yuan was withdrawn. The book value of inventories accounts for 18.48% of the total assets, and the amount is significant. The withdrawal of inventory falling price reserves depends on the estimation of the net realizable value of inventories. The determination of the net realizable value of inventories requires the management to make significant accounting estimates. Therefore, we regard the provision for inventory falling price as a key audit matter.
2. Audit response
Our main audit procedures are as follows:
(1) Understand the process of withdrawing inventory falling price reserves and evaluate the effectiveness of its internal control;
(2) Supervise the inventory of the company and check the quantity and condition of the inventory;
(3) The division of inventory age is tested by checking the original voucher, and the inventory with long inventory age is analytically reviewed to analyze whether the inventory falling price reserve is reasonable;
(4) Evaluate the important assumptions involved in the net realizable value calculated by the management, such as checking the sales price and the costs, selling expenses and relevant taxes incurred to the completion, checking the changes of inventory falling price accrued in previous years in the current period, and analyzing the appropriateness of the management's estimation of inventory falling price;
(5) Review the calculation process of inventory impairment test and check the accuracy of amount confirmation.
4、 Other information
The management of your company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in your 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
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 assessing the company's ability to continue as a going concern, disclosing matters related to going concern and applying the assumption of going concern, unless the management plans to liquidate the company, terminate the operation or has no other realistic choice. The management is responsible for supervising the financial reporting process of your 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 to design appropriate audit procedures.
(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 your 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 your 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.
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 statements to the management on compliance with the professional ethics requirements related to independence, and communicate with the management on 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.
Daxin Certified Public Accountants (special general partnership) Chinese certified public accountant: Chen Jinbo
(project partner)
Beijing, China Certified Public Accountant: Yu Hongling
March 28, 2002
1、 Basic information of the company
1. Place of registration, organizational form and headquarters address of the enterprise.
Shantui Construction Machinery Co.Ltd(000680) (hereinafter referred to as "the company" or "the company") is a joint stock limited company reorganized and established on the basis of the former Shandong Bulldozer General Factory with the approval of the economic system reform commission of Jining City, Shandong Province in March 1993. On December 27, 1996, the company's circulating shares were listed and traded in Shenzhen Stock Exchange on January 22, 1997 with stock abbreviation of Shantui Construction Machinery Co.Ltd(000680) , stock code of Shantui Construction Machinery Co.Ltd(000680) , and the company's share capital was 150185321200 yuan as of December 31, 2021, according to the reply of China Securities Regulatory Commission (zjfz [1996] No. 367). Registered place and headquarters address: No. 58, 327 National Road, high tech Zone, Jining City, Shandong Province.
2. Business nature and main business activities of the enterprise.
Industry: special equipment manufacturing.
The company's main products: bulldozer, roller, concrete machinery and parts.
Business scope of the company: research, development, manufacturing, sales, leasing, maintenance and technical consulting services of construction machinery, mining machinery, farmland basic Shaanxi Construction Machinery Co.Ltd(600984) , harvesting machinery and accessories; Rental of houses and sites.
3. The approver of the financial report and the date of approval of the financial report.
The financial statements have been approved by the board of directors on March 28, 2022.
See "note VII. Equity in other entities" for the consolidation scope of the consolidated financial statements of this year.
2、 Preparation basis of financial statements
1. Preparation basis
The financial statements of the company are prepared on the basis of going concern, according to the actual transactions and events, in accordance with the accounting standards for business enterprises - Basic Standards and specific accounting standards issued by the Ministry of Finance (hereinafter collectively referred to as "accounting standards for business enterprises"), and based on the following important accounting policies and accounting estimates.
2. Going concern
The company has the ability of sustainable operation for at least 12 months since the end of the reporting period, and there are no major events affecting the ability of sustainable operation. The subsidiary Shantui Chutian Construction Machinery Co., Ltd. was listed in the disposal list of "zombie" enterprises belonging to the second batch of provincial managed enterprises by Shandong SASAC Lu Guo Zi Yi Zi [2017] No. 4 document. The production and operation activities were stopped and reported according to the liquidation value since January 1, 2017.
On August 30, 2021, the 12th meeting of the 10th board of directors of Shantui Construction Machinery Co.Ltd(000680) (hereinafter referred to as "the company" or " Shantui Construction Machinery Co.Ltd(000680) ") deliberated and adopted the proposal on liquidation and cancellation of wholly-owned subsidiaries, and decided to liquidate and cancel the wholly-owned subsidiary Shandong Shantui Logistics Co., Ltd. (hereinafter referred to as "Shantui logistics"), the production and operation activities were stopped, and the liquidation procedure was transferred from September 1, 2021.
3、 Important accounting policies and accounting estimates
Tips on specific accounting policies and accounting estimates:
1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the financial position of the company as of December 31, 2021, operating results and cash flow in 2021 and other relevant information.
2. Accounting period
The accounting year of the company is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
3. Business cycle
The company takes 12 months a year as its normal business cycle, and takes the business cycle as the liquidity division standard of assets and liabilities.
4. Recording currency
The company takes RMB as the bookkeeping base currency.
5. Accounting treatment methods for business combinations under the same control and not under the same control
(1) Business combination under the same control
For the long-term equity investment formed by business combination under the same control, if the combining party takes the payment of cash, transfer of non cash assets or assumption of liabilities as the combination consideration, the company shall take the share of the book value of the owner's equity of the combined party in the consolidated financial statements of the final controller as the initial investment cost of the long-term equity investment on the combination date. If the combining party takes the issuance of equity instruments as the merger consideration, the total par value of the issued shares shall be taken as the share capital. For the difference between the initial investment cost of long-term equity investment and the book value of merger consideration (or the total face value of issued shares), the capital reserve shall be adjusted; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
(2) Business combination not under the same control
For business combinations not under the same control, the combination cost is the sum of the fair value of the assets paid, liabilities incurred or assumed and equity securities issued by the acquirer to obtain the control over the acquiree on the acquisition date. Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in business combination not under the same control that meet the recognition conditions shall be measured at fair value on the acquisition date. The difference between the fair value of the assets acquired by the acquirer and the fair value of the assets acquired by the acquirer is the difference reflected in the fair value of the assets acquired by the acquirer. If the merger cost of the acquirer is less than the fair value of the identifiable net assets of the acquiree obtained in the merger, the difference between the merger cost and the fair value of the identifiable net assets of the acquiree obtained in the merger after review shall be included in the non operating income of the current period.
