Shanghai Huayi Group Corporation Limited(600623) audit report and financial statements for the year 2021
Shanghai Huayi Group Corporation Limited(600623)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-5 II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner’s equity and parent company statement of changes in owner’s equity 9-12 notes to financial statements 1-196
audit report
Xin Hui Shi Bao Zi [2022] No. za10425 Shanghai Huayi Group Corporation Limited(600623) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shanghai Huayi Group Corporation Limited(600623) (hereinafter referred to as Shanghai Huayi Group Corporation Limited(600623) ), 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 financial position of Shanghai Huayi Group Corporation Limited(600623) the consolidated and parent company as of December 31, 2021, and the operating results and cash flows of the consolidated and 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 Shanghai Huayi Group Corporation Limited(600623) , 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) recoverability of accounts receivable
Our audit procedures for the recoverability of accounts receivable mainly include:
① Through discussion with the management and review of historical data, please refer to the accounting price described in note III (x) of the financial statements, the expected credit policy adopted by the management in evaluating the bad debt reserves and note V (IV).
On December 31, 2021, Shanghai Huayi Group Corporation Limited(600623) the rationality of loss model and use parameters (including forward-looking information) for accounts receivable;
The original value of is 198311874833 yuan, and the bad debt provision is ② implement the letter confirmation procedure, and record the letter confirmation results with the management of 42817051405 yuan. The amount recorded has been checked;
Since Shanghai Huayi Group Corporation Limited(600623) management needs to use significant accounting estimates and judge the rationality of credit loss provision when evaluating the expected recoverable amount of the management in determining the expected accounts receivable ③ combined with the inspection of the collection after the period; And the amount affected is significant. Therefore, we determine the receivable
The recoverability of accounts is the key audit matter. ④ According to the understanding of the above procedures, recalculate the bad debt reserves of the ending balance of accounts receivable, and compare the calculation results with the bad debt reserves of the ending balance of accounts receivable made by the management.
(II) impairment of goodwill. Please refer to note III (XX) for accounting policies on impairment of goodwill; Please refer to the analysis of our audit procedures for impairment of Goodwill:
5、 (XVII). ① Evaluate the competence of the external appraisers appointed by the management Shanghai Huayi Group Corporation Limited(600623) at the end of each year, conduct impairment test on goodwill, and the impairment evaluation results of goodwill shall be based on the management’s strength, professional quality and objectivity;
② Analyze the identification of the management and external appraisers on the evaluation report prepared by the external appraisers appointed by the management and external appraisers for the assets to which the goodwill belongs and the relevant identification used in the goodwill impairment test. Because the goodwill impairment assessment involves the use of a large number of judgments and estimates, especially the determination of income growth rate, sustainable growth key assumptions and methods, and check the rationality of relevant assumptions and methods;
The long rate, and the risk adjusted discount rate applied to determine ③ there are inherent uncertainties and may be affected by the preference of the management when comparing the book value of the asset group to which the goodwill belongs and its collectability. We recognize the impairment of goodwill as the difference of key return amount and confirm whether it exists in the impairment of goodwill.
Audit matters.
4、 Other information
Shanghai Huayi Group Corporation Limited(600623) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Shanghai Huayi Group Corporation Limited(600623) 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 Shanghai Huayi Group Corporation Limited(600623) ‘s ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, 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 Shanghai Huayi Group Corporation Limited(600623) .
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 Shanghai Huayi Group Corporation Limited(600623) going concern ability. 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 Shanghai Huayi Group Corporation Limited(600623) unable to continue to operate.
(V) whether the financial statements reflect the fair structure and related matters, including the overall evaluation of the financial statements.
(VI) obtain sufficient and appropriate audit evidence on the financial information of the entity or business activities in Shanghai Huayi Group Corporation Limited(600623) to express an audit opinion on the consolidated financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
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 a statement to the management that we have complied with the professional ethics requirements related to independence, and communicate with the management 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.
Chinese Certified Public Accountants of Lixin certified public accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Shanghai, China March 25, 2002
Shanghai Huayi Group Corporation Limited(600623)
Consolidated balance sheet
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets closing balance of last year
Current assets:
Monetary capital (I) 990710935170892619197382
Provision for settlement
Lending funds
Trading financial assets (II) 143358895715171064567316
Derivative financial assets
Notes receivable (III) 126940818389259763583
Accounts receivable (IV) 155494823428183976112514
Receivables financing (V) 339262382176
