China Audit Asia Pacific Certified Public Accountants LLP
Audit report
AUDIT REPORT
Gohigh Data Networks Technology Co.Ltd(000851)
Audit of financial statements in 2021
Beijing, China
BEIJING CHINA
catalogue
1、 Audit report 1-6 II. Audited financial statements
1. Consolidated balance sheet 7-8 2. Consolidated income statement 9 3. Consolidated Cash Flow Statement 10 4. Consolidated statement of changes in shareholders’ equity 11-12 5. Balance sheet 13-14 6. Income statement 15 7. Cash flow statement 16 8. Statement of changes in shareholders’ equity 17-18 9. Notes to financial statements 19-129
audit report
Zsapssz [2022] No. Guangzhou Ruoyuchen Technology Co.Ltd(003010) Gohigh Data Networks Technology Co.Ltd(000851) all shareholders:
1、 Audit opinion
We have audited the financial statements of Gohigh Data Networks Technology Co.Ltd(000851) (hereinafter referred to as ” Gohigh Data Networks Technology Co.Ltd(000851) 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 financial position of Gohigh Data Networks Technology Co.Ltd(000851) company as of December 31, 2021 and the 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 Gohigh Data Networks Technology Co.Ltd(000851) 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) impairment of goodwill
1. Item description
On December 31, 2021, the book value of goodwill in the consolidated financial statements of Gohigh Data Networks Technology Co.Ltd(000851) company was 337076 million yuan. The management conducts impairment test on goodwill on the balance sheet date. The management conducts impairment test on the goodwill by comparing the recoverable amount of the relevant asset group to which the goodwill is allocated with the book value of the asset group and the goodwill. The predicted recoverable amount involves the prediction of the present value of the future cash flow of the asset group. The management needs to make major judgments and assumptions in the prediction, especially the growth rate of future sales revenue, gross profit margin of sales, operating expenses and discount rate. As the goodwill impairment test process is complex and involves significant judgments, we regard it as a key audit matter.
2. Audit response
(1) Understand the procedures of goodwill impairment test of Gohigh Data Networks Technology Co.Ltd(000851) company;
(2) Obtain the relevant data of the company’s goodwill impairment test, and judge whether the future sales revenue, operating expenses and discount rate are reasonable;
(3) Evaluate the competence, professional quality and objectivity of external valuation experts;
(4) Communicate with external valuation experts to judge whether the relevant assumptions used in the evaluation and prediction based on goodwill impairment test are reasonable and whether the evaluation method is appropriate;
(5) Evaluate whether the relevant tests and disclosures of goodwill impairment comply with the provisions of relevant accounting standards.
(II) provision for bad debts of accounts receivable
1. Item description
On December 31, 2021, the book value of accounts receivable of Gohigh Data Networks Technology Co.Ltd(000851) company was 28645728 million yuan, accounting for 29.20% of the total assets in the consolidated financial statements, accounting for a relatively high proportion. The management shall regularly evaluate the bad debt reserves of accounts receivable. The calculation of bad debt provision for accounts receivable is based on the management’s estimation of expected credit loss. The estimation needs to consider the past default, the repayment records of customers, the aging of accounts receivable in the balance sheet and the latest financial situation of customers, as well as other relevant situations of some customers and the prediction of future economic conditions. The determination of bad debt provision for accounts receivable requires significant judgment and estimation by the management. Therefore, we regard bad debt provision for accounts receivable as a key audit matter.
2. Audit response
(1) Evaluate and test the effectiveness of internal control design and implementation of accounts receivable management;
(2) Analyze the rationality of the management’s expected credit loss of accounts receivable, including the basis for determining the combination of accounts receivable, the withdrawal proportion of bad debt reserves, the judgment basis for single withdrawal of bad debt reserves, etc;
(3) Obtain the accrual table of bad debt provision for accounts receivable and check whether the accrual method is implemented in accordance with the bad debt policy; Whether the recalculation of bad debt provision amount is accurate;
(4) Implement accounts receivable confirmation procedures and check the collection after the period.
(III) recognition of income
1. Item description
The accounting policies for revenue recognition are detailed in “4.25 revenue” in the notes to the financial statements.
As stated in the note “6.45 operating revenue and operating cost” to the financial statements, the operating revenue of Gohigh Data Networks Technology Co.Ltd(000851) recognized in 2021 was 8548464 million yuan, an increase of 21.81% over 2020. As revenue is one of the key performance indicators of Gohigh Data Networks Technology Co.Ltd(000851) , 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 management’s key internal control related to revenue; (2) Check the sales contract, understand the main contract terms or conditions, and evaluate whether the revenue recognition method is appropriate in combination with the product characteristics;
(3) Analyze the income and gross profit in combination with the income type to judge whether there is abnormal fluctuation in the amount of income in the current period;
(4) Select a sample of revenue transactions recorded in this year, check the sales contract, delivery order, arrival receipt or acceptance report, and evaluate whether the relevant revenue complies with the accounting policies for revenue recognition; For the income from technical services, select contracts, check the completion of various contract performance obligations, contract payments, costs and expenses and other relevant supporting evidence, and evaluate whether the recognition of income conforms to the accounting policies;
(5) Confirm the authenticity and integrity of revenue recognition by letter in combination with the letter procedure of accounts receivable;
(6) Select a sample of revenue transactions recorded before and after the balance sheet date, check the basis for revenue recognition, and evaluate whether the revenue is recorded in the appropriate accounting period.
4、 Other information
Gohigh Data Networks Technology Co.Ltd(000851) the management of the company is responsible for other information. Other information includes the information covered in the 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.
It seems that we are responsible for reading the financial statements in combination with other information, or whether there is a material error in the process of our audit.
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
Gohigh Data Networks Technology Co.Ltd(000851) the management of the company (hereinafter referred to as “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 major misstatement caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Gohigh Data Networks Technology Co.Ltd(000851) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Gohigh Data Networks Technology Co.Ltd(000851) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Gohigh Data Networks Technology Co.Ltd(000851) 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 auditing in accordance with the auditing standards, we use professional judgment and maintain professional suspicion. 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 to design appropriate audit procedures.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management’s use of the going concern assumption. 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 Gohigh Data Networks Technology Co.Ltd(000851) 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 Gohigh Data Networks Technology Co.Ltd(000851) company to be unable to continue its business.
(V) evaluate the overall presentation, structure and content (including disclosure) of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Gohigh Data Networks Technology Co.Ltd(000851) company to express audit opinions on the consolidated 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.
(there is no text on this page, which is the signature and seal page of zsapac SZ [2022] No. Guangzhou Ruoyuchen Technology Co.Ltd(003010) Gohigh Data Networks Technology Co.Ltd(000851) audit report) Chinese certified public accountant of China audit APAC Certified Public Accountants (special general partnership): Zeng Yun
(project partner)
Chinese certified public accountant: Sun Junliang
Beijing, China April 12, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Gohigh Data Networks Technology Co.Ltd(000851)
