Yantai Tayho Advanced Materials Co.Ltd(002254)
Consolidated and parent company financial statements in 2021
Special audit report
Zhongxinghua Certified Public Accountants (special general partnership)
Zhongxinghua certified public accounts 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、 Special audit report II. Attached audit report
1. Consolidated balance sheet
2. Consolidated income statement
3. Consolidated cash flow statement
4. Consolidated statement of changes in shareholders’ equity
5. Balance sheet of parent company
6. Income statement of parent company
7. Cash flow statement of parent company
8. Statement of changes in shareholders’ equity of the parent company
9. 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 Hu 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: 20 / F, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, No. 20 Lize Road, 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 special audit report
Zxhzz (2022) No. 010148 Yantai Tayho Advanced Materials Co.Ltd(002254) all shareholders:
1、 Audit opinion
We have audited the financial statements of Yantai Tayho Advanced Materials Co.Ltd(002254) (hereinafter referred to as ” Yantai Tayho Advanced Materials Co.Ltd(002254) “), 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 Yantai Tayho Advanced Materials Co.Ltd(002254) the consolidated and parent company as of December 31, 2021 and the operating results and cash flows 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Yantai Tayho Advanced Materials Co.Ltd(002254) , 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. (I) revenue recognition
1. Item description
In 2021, Yantai Tayho Advanced Materials Co.Ltd(002254) company’s consolidated main business income was 4404012500 yuan, mainly from the sales income of finished products of spandex, meta aramid and para aramid.
As revenue is one of the important financial indicators, there is an inherent risk that the management manipulates the time point of revenue recognition in order to achieve specific goals or expectations. Therefore, we regard revenue recognition as a key audit matter.
2. Audit response
① Understand and evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ② Select samples from the accounting records and delivery records of sales revenue, check the contract, delivery note, invoice and other information related to the sales, and evaluate the authenticity and integrity of revenue recognition in combination with the letter confirmation procedure of accounts receivable;
③ Carry out analytical procedures for income and cost, including: analysis of the fluctuation of income, cost and gross profit margin of each month in the current period, comparative analysis of income, cost and gross profit margin of main products in the current period and the previous period, and evaluate the accuracy of income recognition;
④ For export sales, check the sales records with export sales documents such as export declaration form and sales invoice, query the customs declaration information and verify the authenticity of export income;
⑤ Select a sample of revenue transactions recorded before and after the balance sheet date, check the delivery note and other supporting documents, and evaluate whether the revenue is recorded in the appropriate accounting period.
4、 Other information
Yantai Tayho Advanced Materials Co.Ltd(002254) Management (hereinafter referred to as management) is responsible for other information. Information included in our annual audit report and other information not included in our annual 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 evaluating the going concern ability of Yantai Tayho Advanced Materials Co.Ltd(002254) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Yantai Tayho Advanced Materials Co.Ltd(002254) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Yantai Tayho Advanced Materials Co.Ltd(002254) .
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 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. 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 Yantai Tayho Advanced Materials Co.Ltd(002254) 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 Yantai Tayho Advanced Materials Co.Ltd(002254) unable to continue as a going concern.
(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 the entity or business activities in Yantai Tayho Advanced Materials Co.Ltd(002254) 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.
This report is only for Yantai Tayho Advanced Materials Co.Ltd(002254) non-public issuance of A-Shares and is not used for other purposes. The use consequences caused by improper use of this report have nothing to do with the accounting firm and the signing certified public accountant performing this audit. Zhongxinghua Certified Public Accountants (special general partnership) Chinese certified public accountant: Wang Guangpeng
(project partner)
Beijing, China Certified Public Accountant: Yuan Nan
April 11, 2022
Consolidated balance sheet
December 31, 2021
Prepared by: Yantai Tayho Advanced Materials Co.Ltd(002254) amount unit: RMB
Project notes closing balance opening balance closing balance of last year
Current assets:
Monetary capital VI. 1245208892436244776011514244776011514
Trading financial assets VI. 251292614119
Derivative financial assets
Notes receivable VI. 38700 China Vanke Co.Ltd(000002) 54348012254348012
Accounts receivable VI. 41260304832869454883926945488392
Accounts receivable financing VI. 5524837146202715620034427156200344
Prepayment VI. 6445197637312169645431216964543
Other receivables VI. 792152799234840092503484009250
Inventory VI. 87397264967
