Lianda Certified Public Accountants (special general partnership)
Guangdong Chaohua Technology Co.Ltd(002288)
Audit report
Year 2021
catalogue
Page
1、 Audit report 1-4
2、 Consolidated balance sheet 5-6
3、 Consolidated income statement 7
4、 Consolidated cash flow statement 8
5、 Consolidated statement of changes in shareholders' equity 9-10
6、 Balance sheet 11-12
7、 Income statement 13
8、 Cash flow statement 14
9、 Statement of changes in shareholders' equity 15-16
10、 Notes to financial statements 17-111
Client: Guangdong Chaohua Technology Co.Ltd(002288) Auditor: Lianda Certified Public Accountants (special general partnership) Tel: (010) 85886680 fax number: (010) 85886690 fax number address: http://www.Reanda.com.
Audit report
Lianda Shen Zi [2022] No. 2064 Guangdong Chaohua Technology Co.Ltd(002288) all shareholders:
1、 Reservations
We have audited the financial statements of Guangdong Chaohua Technology Co.Ltd(002288) (hereinafter referred to as " Guangdong Chaohua Technology Co.Ltd(002288) "), including the consolidated and company's balance sheet as of December 31, 2021, the consolidated and company's income statement, consolidated and company's cash flow statement, consolidated and company's statement of changes in shareholders' equity and notes to relevant financial statements in 2021.
In our opinion, in addition to the impact of the matters described in the "basis for forming qualified opinions", the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects and fairly reflect the financial position of the company as of December 31, 2021 and the operating results and cash flow of the company in 2021.
2、 Basis for forming reservations
Zhao Jizeng brought a lawsuit to the court for a loan dispute with Liang Jianfeng, the actual controller of Guangdong Chaohua Technology Co.Ltd(002288) and requested the court to make a judgment that Liang Jianfeng should return the loan principal, loan interest, pay liquidated damages and the plaintiff's lawyer's fees totaling 307302800 yuan, and request Guangdong Chaohua Technology Co.Ltd(002288) to bear joint and several guarantee liabilities. On November 16, 2021, according to the civil ruling (2021) Yue 03 min Chu No. 100 issued by Shenzhen intermediate people's court, the first instance judgment rejected the prosecution of the plaintiff Zhao Jizeng. Zhao Jizeng refused to accept the civil ruling and appealed to the higher people's Court of Guangdong Province. As of December 31, 2021, the case is in the plaintiff's appeal stage. For the above litigation matters, we are unable to determine the impact of the pending litigation matters on the Guangdong Chaohua Technology Co.Ltd(002288) financial statements because we failed to obtain sufficient and appropriate audit evidence or obtain sufficient and appropriate audit evidence through the implementation of other alternative audit procedures. 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 Guangdong Chaohua Technology Co.Ltd(002288) , 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
Revenue recognition
(I) item description
As shown in notes VI and 38 to the financial statements, the income of Guangdong Chaohua Technology Co.Ltd(002288) consolidated statements in 2021 was 2473074800 yuan, an increase of 1195296400 yuan or 93.54% over 2020 Guangdong Chaohua Technology Co.Ltd(002288) and its subsidiaries are mainly engaged in the production and sales of circuit boards, copper clad laminates and electrolytic copper foil. As the amount of operating revenue is significant and is one of the key performance indicators of Guangdong Chaohua Technology Co.Ltd(002288) and the management may have potential risk of misstatement in the recognition and presentation of operating revenue, we identify Guangdong Chaohua Technology Co.Ltd(002288) operating revenue recognition as a key audit matter. (II) audit response
1. We understand the effectiveness of our internal controls and operations.
2. We understand and evaluate the revenue recognition policy of Guangdong Chaohua Technology Co.Ltd(002288) by reviewing the sales contract and interviewing with the management.
3. We selected samples to check the sales contract, corresponding orders, settlement documents and other documents, and check whether the revenue meets the recognition conditions and whether the recognition time point is correct.
4. According to the characteristics and nature of customer transactions, select samples to implement the letter of confirmation procedure to confirm the balance of accounts receivable and the amount of sales revenue. The replacement test shall be carried out for the items without reply, and the specific causes of the items with inconsistent reply shall be traced and handled accordingly.
5. We selected samples of delivery records before and after the balance sheet date and checked the delivery notes, accounting vouchers and other supporting documents to evaluate whether the income was recorded in the appropriate accounting period.
6. We checked the collection of accounts receivable and whether the name of the account unit of accounts receivable is consistent with that of the customer.
7. We analyzed the changes of income and gross profit in combination with the changes of industrial policies and the situation of Companies in the same industry to judge whether the increase of income and the change of gross profit margin in the current period are reasonable.
4、 Other information
Guangdong Chaohua Technology Co.Ltd(002288) Management (hereinafter referred to as "management") is responsible for other information. Other information includes the information covered in the 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 evaluating the going concern ability of Guangdong Chaohua Technology Co.Ltd(002288) and disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Guangdong Chaohua Technology Co.Ltd(002288) , terminate the operation or has no other realistic choice.
Guangdong Chaohua Technology Co.Ltd(002288) governance layer (hereinafter referred to as "governance layer") is responsible for supervising the financial reporting process of Guangdong Chaohua Technology Co.Ltd(002288) . 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 is significant uncertainty in the matters or circumstances that may lead to major doubts about Guangdong Chaohua Technology Co.Ltd(002288) 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 Guangdong Chaohua Technology Co.Ltd(002288) unable to continue its business.
(V) evaluate the overall presentation, structure and content (including disclosure) 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 Guangdong Chaohua Technology Co.Ltd(002288) to express an opinion on the financial statements. We are responsible for guiding, supervising and executing the group audit. We are fully responsible for the audit opinion.
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.
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.
(no text on this page)
Lianda certified public accountants China Certified Public Accountant
(special general partnership) (project partner):
Ou Yunfei, Chinese certified public accountant:
Zhang Zhihui, Beijing, China, March 29, 2022
Consolidated balance sheet
December 31, 2021
Prepared by: Guangdong Chaohua Technology Co.Ltd(002288) amount unit: RMB
Project notes December 31, 2021 December 31, 2020
Current assets:
Monetary capital VI. 1545910485616061826875
Trading financial assets and derivative financial assets
Notes receivable VI. 2133 Shanghai Pret Composites Co.Ltd(002324) 242409590254
Accounts receivable VI. 347534898892 Zhejiang Xinzhonggang Thermal Power Co.Ltd(605162) 72018
Receivables financing VI. 41359567818
Prepayment VI. 53593695471132791427709
Other receivables VI. 62865302478550 Tianjin Futong Information Science&Technology Co.Ltd(000836) 4
Including: interest receivable
Dividends receivable
Inventory VI. 78775908559091406022489
Contract assets non current assets held for sale that expire within one year
Other flows
