Avic Jonhon Optronic Technology Co.Ltd(002179)
audit report
Dhsz [2022] 005643
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Avic Jonhon Optronic Technology Co.Ltd(002179)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page 1. Audit report 1-6 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3 consolidated cash flow statement 4 consolidated statement of changes in shareholders' equity 5-6 parent company balance sheet 7-8 parent company income statement 9 parent company cash flow Table 10 statement of changes in shareholders' equity of parent company 11-12 notes to financial statements 1-112
Dahua Certified Public Accountants (special general partnership) 12 / F, building 7, No. 16 courtyard, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa com. Audit report
Dahuashen Zi [2022] 005643 Avic Jonhon Optronic Technology Co.Ltd(002179) all shareholders:
1、 Audit opinion
We have audited the financial statements of Avic Jonhon Optronic Technology Co.Ltd(002179) (hereinafter referred to as Avic Jonhon Optronic Technology Co.Ltd(002179) 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 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 consolidated and parent company's financial position of Avic Jonhon Optronic Technology Co.Ltd(002179) company as of December 31, 2021 and the consolidated and parent company's operating results and cash flow 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 Avic Jonhon Optronic Technology Co.Ltd(002179) 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.
We confirm that the following matters are the key audit matters that need to be communicated in the audit report. 1. Recognition of operating revenue
2. Expected credit loss of receivables
（1） Recognition of operating revenue
1. Event description
As stated in note 4 (31) and note 44 of note 6 to the financial statements, the operating revenue of Avic Jonhon Optronic Technology Co.Ltd(002179) company in 2021 was 12866862700 yuan, an increase of 24.86% over the previous year. Operating revenue is the key performance indicator for the operation and assessment of Avic Jonhon Optronic Technology Co.Ltd(002179) company, and its confirmation involves the significant judgment and estimation of the management. Therefore, we determine the confirmation of operating revenue of Avic Jonhon Optronic Technology Co.Ltd(002179) company as a key audit matter.
2. Audit response
Our important audit procedures for the recognition of operating revenue include:
(1) Understand, evaluate and test the effectiveness of the design and operation of internal control related to operating revenue recognition;
(2) Review whether the accounting policies and specific methods of revenue recognition comply with the provisions of accounting standards, the characteristics of the industry, and whether they are correctly and consistently applied;
(3) Analyze the operating income and gross profit in combination with the type of income to judge whether there is abnormal fluctuation in the amount of income in the current period;
(4) Sample check the contracts signed with customers and the sales list of revenue recognized in the current period, and check the relevant data of revenue recognition; Analyze the rationality and authenticity of customer sales; (5) Obtain the transaction records with customers by sampling, and confirm the authenticity of operating revenue by querying the customer's receiving and settlement records;
(6) Select samples from the operating income records to conduct sampling tests and check whether the supporting documents are complete;
(7) Conduct a cut-off test and pay attention to whether there is a significant intertemporal situation in the operating revenue.
Based on the audit work performed, we believe that the relevant judgments and estimates of the management of Avic Jonhon Optronic Technology Co.Ltd(002179) company on the recognition of operating revenue comply with the accounting standards.
（2） Expected credit loss of receivables
1. Event description
As of December 31, 2021, the net value of receivables of Avic Jonhon Optronic Technology Co.Ltd(002179) company was 93553311 million yuan, accounting for 34.66% of the total assets at the end of the period; Among them, the original value of notes receivable is 5050303800 yuan and the expected credit loss is 50742500 yuan; The original value of accounts receivable is 4 Chengdu Haoneng Technology Co.Ltd(603809) 800 yuan, and the expected credit loss is 274781200 yuan; The original value of other receivables is 279584 million yuan, and the expected credit loss is 2.441 million yuan; The original financing value of accounts receivable is 1223700 yuan.
Due to the large amount of receivables and the estimation of expected credit loss is based on the judgment of the management, we identified the expected credit loss of receivables of Avic Jonhon Optronic Technology Co.Ltd(002179) company as a key audit event.
2. Audit response
Our important audit procedures for the impairment of receivables include
(1) Understand, evaluate and test the effectiveness of the design and operation of Avic Jonhon Optronic Technology Co.Ltd(002179) company's internal control related to customer credit policy and accounts receivable management;
(2) Analyze the rationality of the estimation method of the expected credit loss of the receivables of Avic Jonhon Optronic Technology Co.Ltd(002179) company, calculate the expected credit loss according to the accounting policies of the company, and analyze the adequacy of the provision of the expected credit loss of the receivables;
(3) For receivables with large single amount, analyze and review the management's expected credit loss in combination with the identified characteristics of the debtor, the debtor's financial status and repayment ability, so as to confirm the rationality of the expected credit loss accrual method and the sufficiency of the accrual result.
(4) Verify the rationality of the provision of expected credit loss by analyzing the aging of accounts receivable and customer credit, combined with accounts receivable letters of credit and post period collection.
(5) Review the disclosure and presentation of the company's accounts receivable and corresponding bad debt reserves.
Based on the audit work performed, we believe that the relevant judgment and estimation of the estimated credit loss of Avic Jonhon Optronic Technology Co.Ltd(002179) management's receivables are reasonable.
4、 Other information
Avic Jonhon Optronic Technology Co.Ltd(002179) the management of the company is responsible for other information. Other information includes the information covered in the 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 understand 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
Avic Jonhon Optronic Technology Co.Ltd(002179) the management of the company 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 of Avic Jonhon Optronic Technology Co.Ltd(002179) company is responsible for evaluating the continuous operation ability of Avic Jonhon Optronic Technology Co.Ltd(002179) company, disclosing matters related to continuous operation (if applicable), and applying the assumption of continuous operation, unless the management plans to liquidate Avic Jonhon Optronic Technology Co.Ltd(002179) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Avic Jonhon Optronic Technology Co.Ltd(002179) 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:
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. 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 a conclusion on the appropriateness of the going concern assumption used by the management. 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 Avic Jonhon Optronic Technology Co.Ltd(002179) company. If we conclude that there are significant uncertainties, the auditing standards require us to draw the attention of report 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 Avic Jonhon Optronic Technology Co.Ltd(002179) company to be 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 Avic Jonhon Optronic Technology Co.Ltd(002179) company 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.
Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner) Zhang Ling, Beijing, China
