China Aluminum International Engineering Corporation Limited(601068)
Audit report
Dxsz [2022] No. 101615
Daxin Certified Public Accountants (special general partnership)
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Beijing Institute of Certified Public Accountants
Business report unified coding reporting system
Unified code for business reporting: 110101412022732 Zhejiang Yilida Ventilator Co.Ltd(002686)
China Aluminum International Engineering Corporation Limited(601068) annual report audit
Report name:
（A+H）
Report No.: dxsz [2022] No. 101615
Name of audited (inspected) unit: China Aluminum International Engineering Corporation Limited(601068)
Name of accounting firm: Daxin Certified Public Accountants (special general partnership)
Business type: financial statement audit
Report opinion type: unqualified opinion
Report date: March 28, 2022
Filing date: March 27, 2022
Shi Chenqi (110001690086),
Signed by:
Liu Mingzhe (1 Shanghai Kaytune Industrial Co.Ltd(301001) 30001)
(information can be queried by scanning QR code or logging into the official website of Beijing injection Association)
Note: this filing information only proves that the report has been filed with the Beijing Institute of certified public accountants, and does not mean that the Beijing Institute of Certified Public Accountants makes any form of guarantee for the content of the report in any sense.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
audit report
Dxsz [2022] No. 101615 China Aluminum International Engineering Corporation Limited(601068) all shareholders:
1、 Audit opinion
We have audited the financial statements of China Aluminum International Engineering Corporation Limited(601068) (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.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
(I) revenue and cost recognition of engineering construction contract
1. Event description
Refer to "(XXVI) revenue" and "(XXXV) key assumptions and uncertainties used in important judgments and accounting estimates made in the process of applying accounting policies" in "III. important accounting policies and accounting estimates" and "(XLVI) operating revenue and operating cost" in "v. notes to important items of consolidated financial statements" for accounting policies and relevant disclosures related to engineering construction contract revenue and cost.
The revenue and income of your company mainly come from the engineering construction business. In the consolidated income statement of your company in 2021, the engineering construction business accounted for 82.32% and 82.15% of the operating revenue and operating cost respectively. When the performance progress of such business can be reasonably determined, the revenue and cost shall be recognized according to the performance progress. The evaluation of the performance progress involves the significant judgment of the management, including the continuous and reasonable estimation of the total contract revenue and total contract cost during the implementation process. Therefore, we identify it as a key audit matter.
2. Audit response
Our audit procedures for revenue and cost recognition of engineering construction contract mainly include:
(1) Understand and evaluate the design of your company's key internal control related to project construction, and test its operation effectiveness during the reporting period;
(2) Select engineering projects by sampling, check the engineering project contract and cost budget and other relevant data on which the estimated total revenue and estimated total cost are based, and evaluate whether the estimates made by the management are reasonable and sufficient;
(3) Spot check the actual costs incurred and trace them to external supporting evidence;
(4) Implement cut-off test procedures to check whether the relevant contract costs are recorded in the appropriate accounting period;
(5) Implement analytical procedures for the gross profit margin of major project construction contracts;
(6) Select engineering projects by sampling, recalculate their performance progress, and pay attention to the accuracy of their book confirmation data;
(7) Select major engineering projects by sampling, check the image progress of the project on site, discuss and evaluate the image progress of the project with the engineering management department, compare it with the performance progress recorded in the book, and carry out further inspection procedures for abnormal deviations.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building com. cn. Postal Code: Beijing, China 100083
(II) receivables, expected credit losses of contract assets and inventory falling price reserves
1. Event description
For relevant accounting policies and disclosures, please refer to "(XI) determination method and accounting treatment method of expected credit loss", "XXXV) key assumptions and uncertainties used in important judgments and accounting estimates made in the process of applying accounting policies", and "v. notes to important items in the consolidated financial statements".
Your company withdraws bad debt reserves based on expected credit risk receivables and contract assets, measures and recognizes inventory falling price reserves according to the lower of cost and net realizable value. As of December 31, 2021, the balance of your company's accounts receivable was 182528124 million yuan, the balance of other accounts receivable was 36572435 million yuan, the balance of inventory was 303552411 million yuan, the balance of contract assets was 82507375 million yuan, the balance of long-term accounts receivable was 24526051 million yuan (including the non current assets due within one year), and the long-term contract assets were 741774 million yuan (listed in other non current assets), The provision for bad debts was 29514483 million yuan, 13048409 million yuan, 5182547 million yuan, 6806912 million yuan, 3734907 million yuan and 4.8198 million yuan respectively. The management continuously evaluates the expected credit loss of these assets according to the relevant information it obtains. Considering that the assumptions and input values used in the impairment test depend on the significant judgment of the management, we recognize them as key audit matters.
2. Audit response
Our audit procedures for the calculation of bad debt reserves of accounts receivable and contract assets and the recognition of inventory falling price reserves mainly include:
(1) Understand and evaluate the design of your company's key internal control related to credit approval, expected credit loss test and inventory falling price reserve, and test its operation effectiveness during the reporting period;
(2) Review the relevant considerations and objective evidence of the management's evaluation of accounts receivable, expected credit risk of contract assets and inventory falling price reserves, including the rationality of portfolio division and determination of expected credit loss rate;
(3) For receivables and contract assets that separately determine the expected credit loss, review the basis and rationality of the management's evaluation of the expected future cash flow, including checking the mortgage guarantee contract, the third-party evaluation report of mortgage assets, repayment plan and other supporting evidence;
(4) Obtain the relevant documents of the company's inventory impairment test, check whether it is implemented in accordance with the relevant accounting policies of the company, and analyze whether the provision for inventory falling price is sufficient;
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1, Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668
No.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: www.daxincpa com. cn.
Postal Code: Beijing, China 100083
(5) According to the contract, settlement data and other information, review whether the aging division and bad debt provision of the relevant assets that use the combination method to deal with the expected credit loss are accurate.
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.
In 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 (if applicable), and applying the going concern assumption, 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.
