Chengdu Jafaantai Education Technology Co.Ltd(300559)
Audit report
Dxsz [2022] No. Risen Energy Co.Ltd(300118)
Daxin Certified Public Accountants (special general partnership)
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
Audit report
Dxsz [2022] No. Risen Energy Co.Ltd(300118) Chengdu Jafaantai Education Technology Co.Ltd(300559) all shareholders:
1、 Audit opinion
We have audited the financial statements of Chengdu Jafaantai Education Technology Co.Ltd(300559) (hereinafter referred to as “the 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 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 your company as of December 31, 2021 and the operating results and cash flows of your company and the 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of your 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.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building com. cn. Postal Code: Beijing, China 100083
(I) provision for bad debt of accounts receivable
1. Item description
As stated in notes III (XI) and V (IV) of the financial statements, the balance of accounts receivable of your company as of December 31, 2021 was 21335783770 yuan, and the balance of bad debt provision for accounts receivable of your company as of December 31, 2021 was 6079710985 yuan.
According to the credit risk characteristics of various accounts receivable, the management of your company confirms its loss reserves based on the amount of expected credit loss equivalent to the whole duration on the basis of single accounts receivable or a combination of accounts receivable: for accounts receivable that measure expected credit loss on a single basis, the management comprehensively considers the information based on past events, current situation and future economic situation, Estimate the cash flow expected to be received and determine the bad debt reserves to be withdrawn accordingly; For the accounts receivable whose expected credit loss is measured on the basis of portfolio, refer to the experience of historical credit loss and adjust it according to forward-looking estimation, prepare the comparison table between the aging of accounts receivable and the default loss rate, and determine the accrued bad debt provision accordingly.
As the provision for bad debt of accounts receivable involves significant management judgment, we recognize the recognition of bad debt provision of accounts receivable as a key audit event.
2. Audit response
We have mainly implemented the following audit procedures for the provision for bad debts of accounts receivable:
(1) Understand the internal control system related to the daily management and recoverability evaluation of accounts receivable, and evaluate and test its design and operation effectiveness;
(2) Reviewed the company’s contract and management’s evaluation of accounts receivable; Review whether the relevant accounting policies formulated by the management comply with the relevant provisions of the new financial instrument standards;
(3) Review the accuracy of the aging division of your company’s accounts receivable, focusing on the management’s judgment on the recoverability of large accounts receivable aged more than 1 year; We reviewed the management’s judgment on the recoverability of accounts receivable, and analyzed the appropriateness of the management’s judgment by examining the evidence such as historical payment records and post period collection, combined with the results of accounts receivable confirmation procedures;
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
(4) According to the accounting policies of your company and combined with the aging of accounts receivable, the accuracy of bad debt provision calculation is reviewed.
(II) revenue recognition
1. Item description
As stated in notes III (24) and V (38) of the financial statements, your company’s main business is to develop, produce and sell educational informatization products with independent intellectual property rights and independent brands, and provide relevant services for users. The products mainly include educational examination informatization product series and cloud top intelligent education product series. In 2021, your company realized an operating revenue of 36969792312 yuan, a year-on-year decrease of 37.37%. Since operating revenue is one of the key business indicators of your company, whether the recognition of operating revenue is appropriate has a significant impact on the operating results, the accuracy of revenue accounting and whether it is recognized that there may be potential risk of misstatement in the appropriate accounting period. Therefore, we recognize revenue recognition as a key audit matter.
2. Audit response
We have mainly implemented the following audit procedures for revenue recognition:
(1) Understand and evaluate your company’s key internal control related to revenue recognition, select samples to check the sales contract, identify the performance obligations in the contract (that is, the customer obtains the control right of relevant goods), evaluate whether the revenue recognition time point meets the requirements of the accounting standards for business enterprises, and review whether the relevant accounting policies are correct and consistently applied;
(2) Implement analysis procedures for income and cost, including: monthly income, cost and gross profit fluctuations in the current period, main product categories, comparative analysis of income, cost and gross profit margin in the current period with that in the previous period and other analysis procedures;
(3) Combined with the audit of accounts receivable, carry out alternative tests on the transaction volume and transaction balance of letters from major customers and customers who have not replied to letters, so as to confirm the occurrence and accuracy of relevant income;
(4) By sampling, the supporting documents of relevant revenue recognition, including relevant sales contracts, sales delivery orders, customer acceptance documents, sales collection and other confirmation documents, were checked to verify the occurrence of revenue;
(5) In combination with inventory supervision, issuance of commodity letters and acceptance, a cut-off test is performed on the recognition of sales revenue to judge whether the relevant revenue is recorded in the appropriate accounting period.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1, Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668
No.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: www.daxincpa com. cn.
Postal Code: Beijing, China 100083
4、 Other information
The management of your company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in your 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.
In preparing the financial statements, the management is responsible for assessing the company’s ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate the company, terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of your 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.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1, Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668
No.1zhichun Road, Haidian dist, 15th floor, College International Building. Website: www.daxincpa com. cn.
Postal Code: Beijing, China 100083
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, so as to design appropriate audit
