Chengdu Xiling Power Science & Technology Incorporated Company(300733) : 2021 annual audit report ShineWing certified public accountants, Chaoyang Gate North Street, Dongcheng District, Beijing Tel: + 86 (010) 65542288 phone: + 86 (010) 65542288 9 / F, block a, Fu Hua Manson,
ShineWing No.8, Chaoyangmen Beidajie, fax:
Dongcheng District, Beijing, +86(01065547190 certified public accountants 100027, P.R.China facsimile: +86(01065547190
audit report
XYZH/2022CDAA90116
Chengdu Xiling Power Science & Technology Incorporated Company(300733) all shareholders:
1、 Audit opinion
We have audited the financial statements of Chengdu Xiling Power Science & Technology Incorporated Company(300733) (hereinafter referred to as Chengdu Xiling Power Science & Technology Incorporated Company(300733) company), including
Including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement in 2021
Consolidated and parent company cash flow statement, consolidated and parent company statement of changes in shareholders’ equity, and notes to relevant financial statements.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects and present fairly
The consolidated and parent company financial status of Chengdu Xiling Power Science & Technology Incorporated Company(300733) company on December 31, 2021 and the consolidated and parent company in 2021
Operating results and cash flow of the company.
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 Chengdu Xiling Power Science & Technology Incorporated Company(300733) 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. 1. Recognition of operating revenue
Countermeasures in key audit matters
As stated in notes VI and 39 to the financial statements, the main procedures we implement for the recognition of operating revenue include:
The company’s operating revenue in 2021 is (1) to understand and evaluate the management’s related to the recognition of operating revenue
75157307481 yuan, due to the heavy amount of operating revenue, the key is whether the design and operation of internal control is effective; Therefore, the review of the company’s contract and sales revenue are the key indicators of the company and are recognized by our management. Talk about, understand and evaluate the appropriateness of operating revenue recognition policies;
(3) Implement analytical review procedures for income, including the main analysis
Annual, monthly and seasonal income fluctuations of key products and major customers
Changes in sales price and gross profit margin;
(4) Implement detailed test procedures, check and revenue recognition
Relevant supporting documents, including sales contracts, orders and sales orders
Sales invoice, product transportation document, customer invoice list, etc;
(5) Take samples, implement letter verification procedures for the transaction amount of operating income and the book balance of accounts receivable or contract liabilities in this year, and check the authenticity of operating income;
(6) Checked the export sales revenue with the customs data; (7) Conduct a cut-off test on the operating revenue to confirm whether the operating revenue is recorded in the appropriate accounting period.
2. Goodwill impairment
Countermeasures in key audit matters
As stated in notes VI and 17 to the financial statements, as of December 31, 2021, the main audit procedures we performed for goodwill impairment test, Chengdu Xiling Power Science & Technology Incorporated Company(300733) company included:
Business merger under the control of Chengdu xinsanhe electromechanical new technology (1) evaluate the rationality of the management’s allocation of goodwill to the asset group or asset group technology development Co., Ltd;
7092251361 yuan, accounting for 2.94% of the total assets of Chengdu Xiling Power Science & Technology Incorporated Company(300733) company (2) understanding the historical performance and development plan of asset group or asset group portfolio, as well as the development of macro economy and industry as of December 31, 2021;
The management shall carry out impairment test on goodwill at the end of the year (3) evaluate the methods, relevant assumptions and tests of goodwill impairment test, hire an external independent evaluation agency to carry out the relevant evaluation work for the purpose of quoting the rationality of parameters, including the expected future cash flow, the current reputation impairment test, and issue the evaluation report according to the expected growth rate, profit rate, discount rate and forecast period, Based on this, the management shall review the goodwill and its recognition basis and other information; Conduct impairment test, and then evaluate whether it is necessary to withdraw. (4) discuss with external evaluation experts hired by the management to understand whether the assumptions most sensitive to the impairment test results are reasonable; Provision for impairment of goodwill.
As the amount of goodwill is significant, (5) review the calculation process of goodwill impairment test. In addition, the management needs to make significant judgments on key assumptions such as expected future cash flow and discount rate during the test. Therefore, we determine the impairment of goodwill as a key audit event.
4、 Other information
The management of Chengdu Xiling Power Science & Technology Incorporated Company(300733) company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Chengdu Xiling Power Science & Technology Incorporated Company(300733) company, 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 sustainable operation ability of Chengdu Xiling Power Science & Technology Incorporated Company(300733) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Chengdu Xiling Power Science & Technology Incorporated Company(300733) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Chengdu Xiling Power Science & Technology Incorporated Company(300733) 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.
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 Chengdu Xiling Power Science & Technology Incorporated Company(300733) 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 Chengdu Xiling Power Science & Technology Incorporated Company(300733) 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 Chengdu Xiling Power Science & Technology Incorporated Company(300733) company to express audit opinions 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 (if applicable). From the matters communicated with Chengdu Xiling Power Science & Technology Incorporated Company(300733) corporate governance, we determine which matters are most important to 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.
ShineWing Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner)
Chinese certified public accountant:
Beijing, China April 11, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Chengdu Xiling Power Science & Technology Incorporated Company(300733)
