Jiangsu Chinagreen Biological Technology Co.Ltd(300970) 2021
audit report
Zhitong Certified Public Accountants (special general partnership)
catalogue
Audit report 1-6
Consolidated and company balance sheet 1-2
Consolidated and corporate income statement 3
Consolidated and company cash flow statement 4
Consolidated and statement of changes in shareholders' equity 5-8
Notes to financial statements 9-95
Zhitong Certified Public Accountants (special general partnership), 5th floor, set square, No. 22, Jianguomenwai street, Chaoyang District, Beijing, China, 100004
Tel. + 86 1085665588
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audit report
Zhi Tong Shen Zi (2022) No. 371a007815 Jiangsu Chinagreen Biological Technology Co.Ltd(300970) all shareholders:
1、 Audit opinion
We have audited the financial statements of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) (hereinafter referred to as " Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company"), 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, 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 financial position of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company as of December 31, 2021 and the consolidated and operating results and cash flow of the 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 Jiangsu Chinagreen Biological Technology Co.Ltd(300970) 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 financial statements of 2021 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.
(I) recognition of sales revenue of edible fungi
See notes III, 25, V and 30 to the financial statements for relevant information disclosure.
1. Item description
Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company is mainly engaged in the research and development, factory planting and sales of edible fungi. In 2021, Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company realized the consolidated sales revenue of edible fungi of RMB 578088200, accounting for 100.00% of the total sales revenue. The company takes the transfer of control of goods to customers as the recognition time point of sales revenue. The company adopts the sales mode of distribution and direct sales, mainly the distribution mode. The company will deliver the edible fungus to the customer or the third-party logistics company designated or recognized by the customer as the revenue recognition time point. Considering the characteristics of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company's industry, there is a risk of material misstatement in the recognition of edible fungus sales revenue. Therefore, we regard it as a key audit matter.
2. Audit response
In the audit of financial statements in 2021, we mainly implemented the following procedures:
(1) Understand and evaluate the internal control design related to sales revenue recognition of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company, and test the effectiveness of key control implementation.
(2) Analyze the changes of sales revenue and gross profit margin of this year in combination with product categories and main business customers, and pay attention to whether there are abnormal fluctuations.
(3) Through sampling inspection of sales contracts, understanding of industry practices and interviews with management, this paper analyzes and evaluates the time point of sales revenue recognition, and evaluates whether the accounting policies for sales revenue recognition of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company meet the requirements of accounting standards for business enterprises.
(4) Select samples of recorded sales revenue transactions, check invoices, sales contracts, delivery orders and other supporting documents, and evaluate whether relevant sales revenue recognition complies with the accounting policies of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company for sales revenue recognition.
(5) For the sales revenue before and after the balance sheet date, select samples and check the sales contract, delivery order and other supporting documents to evaluate whether the sales revenue is recorded in the appropriate accounting period.
(6) We sampled and inspected the important sales revenue executed near each balance sheet date to find out whether there are abnormal pricing, settlement, delivery, return, replacement or acceptance terms, and conducted specific inspection after the period to find out whether there are changes or cancellation of sales orders, refunds, large sales revenue reversal, etc. (7) The positive letter confirmation method is used to implement the letter confirmation procedure for the sales revenue of major and new customers. (8) The sales revenue of major and new customers has been visited.
(II) book value of fixed assets
See notes III, 14, V and 9 to the financial statements for relevant information disclosure.
1. Item description
Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company is mainly engaged in the research and development, factory planting and sales of edible fungi. As of December 31, 2021, the book value of fixed assets of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company was 776779900 yuan, accounting for 41.39% of the total assets. There may be significant risks in the valuation, allocation and existence of the book value of fixed assets, which has a significant impact on the financial situation of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company. Therefore, we determine the book value of fixed assets as a key audit event.
2. Audit response
In the audit of financial statements in 2021, we mainly implemented the following procedures:
(1) Understand and evaluate the internal control design related to the recognition of fixed assets of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company, and test the effectiveness of the implementation of key controls.
(2) For purchased fixed assets, check the purchase contract, invoice and other materials, and conduct spot check to test whether the entry value is correct, whether the authorization and approval procedures are complete, and whether the accounting treatment is correct.
(3) For the fixed assets transferred in from the construction in progress, check whether the confirmation time point of the fixed assets complies with the provisions of the accounting standards for business enterprises, whether the recorded value is consistent with the relevant records of the construction in progress, and whether it is consistent with the completion final settlement, acceptance and handover report; For the fixed assets that have reached the expected serviceable state but have not gone through the completion settlement procedures, check whether they have been recorded according to the estimated value, and withdraw depreciation according to the regulations.
(4) Sampling and supervising the important fixed assets, investigating the fixed assets on the spot, cross checking with the physical assets recorded in the book, and paying attention to whether there are idle fixed assets and scrapped and untreated fixed assets. (5) Check whether Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company has sufficient basis for the provision for impairment of fixed assets, whether the identification of impairment signs and the estimation of important assumptions related to the calculation of recoverable amount are reasonable, and whether the accounting treatment is correct.
4、 Responsibilities of management and governance for financial statements
Jiangsu Chinagreen Biological Technology Co.Ltd(300970) 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 is responsible for evaluating the going concern ability of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company.
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 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 the sustainable operation ability of Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company. 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 Jiangsu Chinagreen Biological Technology Co.Ltd(300970) 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 Jiangsu Chinagreen Biological Technology Co.Ltd(300970) company to express an opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
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.
Zhitong certified public accountants China Certified Public Accountants
(special general partnership) (project partner)
Chinese certified public accountant
Beijing, China, April 8, 2002
Consolidated and company balance sheet
December 31, 2021
Prepared by: Jiangsu Chinagreen Biological Technology Co.Ltd(300970) unit: RMB
Project notes December 31, 2021 December 31, 2020
