Consolidated and parent company financial statements in 2021
Audit report
Zhongxinghua Certified Public Accountants (special general partnership)
Zhongxinghua certified publicaccountants LLP address: 20 / F, tower sohob, Lize, No. 20, Lize Road, Fengtai District, Beijing zip code: 100073 Tel: (010) 51423818 Fax: (010) 51423816
catalogue
1、 Audit report II. Attachment of audit report
1. Consolidated and parent company's balance sheet
2. Consolidated and parent company income statement
3. Consolidated and parent company cash flow statement
4. Consolidated statement of changes in shareholders' equity
5. Statement of changes in shareholders' equity of the parent company
6. Note III to the financial statements and Annex 1 to the audit report Copy of business license of zhongxinghua Certified Public Accountants (special general partnership) 2 Copy of practicing certificate of zhongxinghua Certified Public Accountants (special general partnership) 3 Copy of certified public accountant's practice certificate
Zhongxinghua Certified Public Accountants (special general partnership) Z ho N G x i n g h u a c e r t i f i e d p u b l i c a c o n t a n t s l p address (l o c a t i o n): 20 / F, 20 floor, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, No. 20 Lize Road, Fengtai District, Fengtai District, Beijing, Beijing PR China Tel (t e l): 0 1 0 - 5 1 4 2 3 8 1 8 fax (f a x): 0 1 0 - 5 1 4 2 3 8 1 6 Audit Report
ZTE Huashen Zi (2022) No. 030138 Sailun Group Co.Ltd(601058) all shareholders:
1、 Audit opinion
We have audited the financial statements of Sailun Group Co.Ltd(601058) (hereinafter referred to as " Sailun Group Co.Ltd(601058) "), 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 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 the consolidated and parent company as of December 31, 2021, and the operating results and cash flow 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Sailun Group Co.Ltd(601058) , 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 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.
Zhongxinghua Certified Public Accountants (special general partnership)
(I) provision for impairment of goodwill
1. Item description
See notes to the financial statements, notes IV to the financial statements, 22 impairment of goodwill for impairment of long-term assets, VI and 17 presentation of goodwill.
As of December 31, 2021, the original book value of goodwill in the consolidated financial statements of your company was RMB 433435200, and the provision for impairment of goodwill was RMB 2015173 million. The management of your company shall conduct impairment test on goodwill at least annually. The impairment test requires that the corresponding impairment provision be recognized according to the part where the recoverable amount of the relevant asset group containing goodwill is lower than its book value. The key assumptions involved in the evaluation of recoverable amount include revenue growth rate, gross profit margin, discount rate and other parameters.
As the above goodwill impairment test involves complex and significant judgments, we determine the goodwill impairment test as a key audit event.
2. Audit response
Our main audit procedures for goodwill impairment test include:
(1) Understand, evaluate and test the effectiveness of internal control design and operation related to goodwill impairment test; (2) Reviewed the key assumptions and methods adopted by the management of your company in the recognition of the asset group to which the goodwill belongs in the consolidated financial statements and the goodwill impairment test;
(3) Comprehensively considering the historical operation, industry trend and new market opportunities of the asset group, this paper makes a rationality analysis on the assumptions of future revenue growth rate, gross profit margin and expense rate used by the management;
(4) Discuss with your company's management and appraisal experts, understand and analyze the assumptions most sensitive to the impairment test results, and analyze and check the appropriateness of the key assumptions (such as discount rate) adopted by your company's management and whether the relevant disclosure is appropriate; At the same time, the independence, professional qualification and competence of the evaluation experts are evaluated; (5) A sensitivity analysis was performed on the gross margin.
(II) provision for inventory falling price reserves
1. Item description
Refer to notes IV, 35 (3), significant accounting judgment and estimated inventory falling price reserves, and notes VI and 8, inventories.
As of December 31, 2021, the original value of your company's inventory was 4416879400 yuan, and the balance of inventory falling price reserves was 1091596 million yuan. The net realizable value is determined by the estimated selling price of the inventory after considering the stock age minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes. In view of the amount involved in the project
Zhongxinghua Certified Public Accountants (special general partnership)
Significant and requires the management to make a significant judgment on the estimated selling price, which we regard as a key audit matter.
2. Audit response
(1) Understand and test the internal control related to the estimation of net realizable value of inventory, and evaluate the rationality of its design and implementation effectiveness.
(2) The detailed statement of inventory impairment was obtained, and the estimated selling price, selling expenses and relevant taxes used in the estimation of net realizable value of inventory were reviewed. Among them, we compared the estimated selling price with the recent actual selling price, and independently evaluated the future market trend factors considered by the management in determining the estimated selling price by checking the pricing data, checking the sales situation after the period and combining our industry experience.
(3) Obtain the year-end stock age list of inventory, analytically review the stock age of inventory, and take samples to test the stock age;
(4) Obtain inventory depreciation details and recalculate inventory impairment results.
4、 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 Sailun Group Co.Ltd(601058) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Sailun Group Co.Ltd(601058) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Sailun Group Co.Ltd(601058) .
5、 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 auditing in accordance with the auditing standards, we used professional judgment and maintained professional doubt. At the same time, we also carry out the following work:
(1) 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
Zhongxinghua Certified Public Accountants (special general partnership)
Foundation. 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.
(2) Understand the internal control related to audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures. (4) Draw conclusions on the appropriateness of management's use of going concern assumptions. 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 Sailun Group Co.Ltd(601058) 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 Sailun Group Co.Ltd(601058) unable to continue its business.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Sailun Group Co.Ltd(601058) 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 (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.
Consolidated balance sheet
December 31, 2021
Prepared by: Sailun Group Co.Ltd(601058) amount unit: RMB
Project notes closing balance opening balance closing balance of last year
Current assets:
Monetary capital VI. 1484100653781436942692094436942692094
Trading financial assets VI. 210034040219438402443438402443
Derivative financial assets
Notes receivable VI. 313180752141210 Ping An Bank Co.Ltd(000001) 21000000
Accounts receivable VI. 4235946369807188913973835188913973835
Accounts receivable financing VI. 52661787214735772432808357724328
