Gemac Engineering Machinery Co.Ltd(301048) audited financial statements for 2021
catalogue
Page audit report 1 – 6 audited financial statements
Consolidated balance sheet 7 – 8 consolidated income statement 9 – 10 consolidated statement of changes in shareholders’ equity 11 – 12 consolidated cash flow statement 13 – 14 company balance sheet 15- 16 company’s income statement 17 company’s statement of changes in shareholders’ equity 18 – 19 company’s cash flow statement 20 – 21 notes to financial statements 22 – 136 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 2
audit report
Ernst & Young Huaming (2022) Shen Zi No. 61483325c01 Gemac Engineering Machinery Co.Ltd(301048) Gemac Engineering Machinery Co.Ltd(301048) all shareholders:
1、 Audit opinion
We have audited the financial statements of Gemac Engineering Machinery Co.Ltd(301048) , including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, statement of changes in shareholders’ equity, cash flow statement and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements of Gemac Engineering Machinery Co.Ltd(301048) are prepared in accordance with the accounting standards for business enterprises in all major aspects, and fairly reflect the consolidated and company’s financial position as of December 31, 2021 and the consolidated and 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 Gemac Engineering Machinery Co.Ltd(301048) , 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. Our description of how to deal with each of the following matters in the audit is also against this background.
We have fulfilled the responsibilities described in the “responsibilities of certified public accountants for the audit of financial statements” section of this report, including those related to these key audit matters. Accordingly, our audit work includes the implementation of audit procedures designed to deal with the risk of material misstatement of the assessed financial statements. The results of our audit procedures, including the procedures for the following key audit matters, provide a basis for our overall audit opinion on the financial statements.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61483325c01 Gemac Engineering Machinery Co.Ltd(301048) III. key audit matters (Continued)
Key audit matters: how to deal with this matter in the audit:
Recognition of revenue from sales of goods in the consolidated financial statements of 2021, the amount of revenue from sales of goods included in our audit procedures for the recognition of revenue from sales of goods is 280105086035 yuan, accounting for 92% of the operating revenue, which is significant, which has a significant impact on the financial statement (1) test and evaluation and the recognition statement of revenue from sales of goods. As the design and operation terms of trade-related key internal control applicable to different customers and the time point of control transfer are different, the effectiveness of the management;
The contract stipulates to judge the time point of recognition of sales revenue, (2) sample and inspect the sales contracts of major customers for possible risks that the sales revenue is not recognized in the appropriate period, so as to evaluate the management’s judgment on the risk of sales revenue. Therefore, we identify this matter as a key audit event to determine whether the time point of recognition is appropriate; To the main item. Ask customers to confirm the sales volume. For customers who do not reply, check the sales contract and financial statements to confirm the accounting policies of sales revenue. Refer to note III, 21 and note V and 36 for factory records, sales invoices, customer receipt and disclosure.
Implement alternative procedures such as and acceptance sheet;
(3) Select the sample of sales revenue, and check the original documents such as customer receipt and acceptance according to different sales contracts;
(4) Whether the revenue is properly recognized during the accounting period;
(5) Execute the analysis program.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61483325c01 Gemac Engineering Machinery Co.Ltd(301048) IV. other information
Gemac Engineering Machinery Co.Ltd(301048) management 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 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 Gemac Engineering Machinery Co.Ltd(301048) ‘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 Gemac Engineering Machinery Co.Ltd(301048) .
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61483325c01 Gemac Engineering Machinery Co.Ltd(301048) VI. 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 in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(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 Gemac Engineering Machinery Co.Ltd(301048) 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 Gemac Engineering Machinery Co.Ltd(301048) unable to continue its business.
(5) Evaluate the overall presentation (including disclosure), 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 Gemac Engineering Machinery Co.Ltd(301048) to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61483325c01 Gemac Engineering Machinery Co.Ltd(301048) VI. responsibilities of certified public accountants for the audit of financial statements (Continued)
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 that may reasonably be considered to affect our independence
