audit report
Hc Semitek Corporation(300323)
Rong Cheng Shen Zi [2022] No. 518z0056
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 audit report 1-6
2 consolidated balance sheet 7
3 consolidated income statement 8
4 consolidated cash flow statement 9
5 consolidated statement of changes in owner's equity 10 - 11
6 balance sheet of parent company12
7. Income statement of the parent company 13
8 cash flow statement of parent company 14
9 statement of changes in owner's equity of the parent company 15 - 16
10 notes to the financial statements 17 - 138
Audit report
Rong Cheng Shen Zi [2022] No. 518z0056 Hc Semitek Corporation(300323) all shareholders:
1、 Audit opinion
We have audited the financial statements of Hc Semitek Corporation(300323) (hereinafter referred to as Hc Semitek Corporation(300323) ), 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 owner's 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 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 Hc Semitek Corporation(300323) , 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.
(I) revenue recognition
1. Item description
See notes III, 27 and V, 42 of the financial statements for relevant information disclosure.
In 2021, Hc Semitek Corporation(300323) operating revenue was 3.156 billion yuan Hc Semitek Corporation(300323) operating revenue is recognized as follows: the revenue recognition of domestic products shall meet the following conditions: the company has delivered the products to the customer according to the contract, the customer has accepted the goods, the payment for goods has been recovered or the receipt certificate has been obtained, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of goods have been transferred, and the legal ownership of goods has been transferred.
The revenue recognition of export products shall meet the following conditions: the company has completed the customs declaration procedures according to the contract, has recovered the payment for goods or obtained the collection certificate, and the relevant economic benefits are likely to flow in, the main risks and rewards of commodity ownership have been transferred, and the legal ownership of commodities has been transferred.
Whether the time point of revenue recognition is accurate directly affects the operating revenue and profit amount of Hc Semitek Corporation(300323) 2021, and the revenue belongs to the key performance indicators of the enterprise. The management has the risk of operating the time point of revenue recognition to achieve specific purposes or expectations. Therefore, we recognize revenue recognition as a key audit matter.
2. Audit response
Our relevant procedures for revenue recognition mainly include:
(1) Evaluate and test the design and operation effectiveness of Hc Semitek Corporation(300323) internal control related to revenue recognition; (2) Implement analysis procedures for income and cost, including: analysis of monthly income, cost and gross profit fluctuation in the reporting period, comparative analysis of income, cost and gross profit margin of main products in the reporting period, and evaluate the rationality of changes in income related indicators;
(3) Select samples from the accounting records and delivery records of sales revenue, check the contract order, shipment order, receipt, invoice and other information related to the sales, select samples according to the amount of customer transactions, implement the letter confirmation procedure, and evaluate the authenticity and completeness of revenue recognition;
(4) Select the transaction samples recorded before and after the balance sheet date, check the receipt and other supporting documents, and evaluate whether the income is recorded in the appropriate accounting period;
(5) Conduct background investigation on major customers and evaluate the authenticity and rationality of the transaction;
(6) Select the main customers of the current period, the balance of correspondence and transaction volume, so as to obtain external evidence of the authenticity of income.
(II) impairment of long-term assets
1. Item description
See "notes V and 15", "notes V and 16", "notes V and 18", "notes V and 19", "notes V and 23" and "notes V and 52" of the financial statements for relevant information disclosure.
As of December 31, 2021, the book value of medium and long-term assets (fixed assets, construction in progress, intangible assets, development expenditure and other non current assets) in the consolidated financial statements is 6.701 billion yuan, accounting for 57.34% of the total assets in the consolidated financial statements, which is important for the consolidated financial statements.
During the reporting period, the company had insufficient capacity utilization, and the management identified signs of impairment of long-term assets. Relevant impairment tests involve significant estimates and judgments of the management, including discount rate and cash flow forecast based on future market supply and demand. Changes in management's estimates and judgments may have significant financial impact.
Due to the importance of the book value of long-term assets to the financial statements and the inherent uncertainty in the prediction and discount of the future cash flow of relevant asset groups, we recognize the impairment of long-term assets as a key audit event. 2. Audit response
Our procedures for the impairment test of long-term assets include:
(1) Evaluate and test the design and operation effectiveness of internal control related to Hc Semitek Corporation(300323) long-term asset impairment; (2) Evaluate the important assumptions involved in the management's estimation of its recoverable amount;
(3) Based on our understanding of the LED chip industry, analyze and review the rationality of major estimates and judgments used by the management in predicting the present value of future cash flow in the impairment test;
(4) Analyzed and reviewed the discount rate used by the management in the impairment test;
(5) Compare the actual performance of the current year with the annual performance predicted in the previous year, and evaluate the rationality of the business forecast;
(6) Check the basic data when estimating the present value of future cash flow with supporting evidence (such as approved budget), and consider the rationality of the budget;
(7) Use the work of external valuation experts to evaluate the rationality of the impairment test method and discount rate used by the management.
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 Hc Semitek Corporation(300323) 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.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Hc Semitek Corporation(300323) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Hc Semitek Corporation(300323) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Hc Semitek Corporation(300323) .
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 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 Hc Semitek Corporation(300323) 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 Hc Semitek Corporation(300323) 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 Hc Semitek Corporation(300323) 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.
Identify and communicate with our internal management on the audit plan and the matters worthy of our attention.
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 page is the signature and seal page of Hc Semitek Corporation(300323) Rong Cheng Shen Zi [2022] No. 518z0056 report.)
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Pan Xinhua (project partner)
Beijing, China Certified Public Accountant:
Wang Lianqiang
April 11, 2022
Consolidated balance sheet
December 31, 2021
Prepared by: Hc Semitek Corporation(300323) unit: RMB currency: RMB
Project attachment
