Adopt Technology Co., Ltd
Audit report
catalogue
Page
1、 Audit report 1-4 II Financial statement 5-20 (I) consolidated balance sheet 5-6 (II) consolidated income statement 7 (III) consolidated cash flow statement 8 (IV) Consolidated statement of changes in owner's equity 9-12 (V) balance sheet of parent company 13-14 (VI) profit statement of parent company 15 (VII) cash flow statement of parent company 16 (VIII) Statement of changes in owner's equity of the parent company 17-20 III. notes to financial statements 21-175
Audit report
All shareholders of Zhonghui kuaishan [2021] No. 6807 adoption Technology Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of adoptive Technology Co., Ltd. (hereinafter referred to as adoptive technology company), including the consolidated and parent company's balance sheets on December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, the consolidated and parent company's income statements, consolidated and parent company's cash flow statements for 2018, 2019, 2020 and January June 2021 Consolidated and parent company's statement of changes in owner's equity and notes to financial statements.
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 of the adopted technology company as of December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, as well as the financial position of 2018, 2019 and 2020 Operating results and cash flows of the merger and parent company from January to June 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 the adoption of technology companies 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.
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3、 Key audit matters
Key audit matters are the most important matters that we believe are the audit of financial statements for 2018, 2019, 2020 and January June 2021 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 do 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with key audit matters in audit
Accounting periods related to revenue recognition: January June 2021, 2020, January June 2021, 2020, 2019, fiscal year 2018 and fiscal year 2018. In the audit of financial statements, we performed relevant information disclosure for the key audit matters. See note III to the financial statements (the main audit procedures of line 20 include but are not limited to:
8） V. (XXIX). 1. Understand and test the internal control related to the recognition of product sales revenue from January to June 2021, 2020, 2019 and 2018;
The operating income of the adopted technology company was 2.5% respectively Check the supporting documents related to revenue recognition, including sales contract, delivery order, customs declaration, bill of lading, sales invoice, 181312620.29 yuan, 143377356.64 yuan, main product transportation document, customer receipt, etc; It comes from masks, puncture needles, syringes and laboratories For the sales revenue recognized before and after the balance sheet date, for the R & D, production, sales and services of nuclear materials related products, the customer shall sign the receipt, bill of lading and other supporting documents to evaluate whether the sales revenue is one of the company's key performance indicators and whether the sales revenue is recognized in an appropriate period; The management of the technology company (hereinafter referred to as the management) in order to achieve 4 Implement the analytical review procedure to evaluate the rationality of the inherent gross profit margin change at the time point of revenue recognition by manipulating the product sales revenue and specific objectives or expectations; 5. Risk, so we regard the recognition of the company's revenue as the key Implement visit procedures for important customers;
Audit matters. 6. Implement the confirmation procedure for important customers.
4、 Responsibilities of management and governance for financial statements
The management is responsible for preparing the financial statements in accordance with 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.
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When preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of the adopted technology company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate the adopted technology company, terminate operation or has no other realistic choice.
The governance layer of the technology adoption company (hereinafter referred to as the governance layer) is responsible for supervising the financial reporting process of the technology adoption company.
5、 Responsibilities of certified public accountants for the audit of financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement due to fraud or error, and to issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that an audit performed in accordance with audit standards can 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 performing audit work in accordance with 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. As fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failure to find material 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 the sustainable operation ability of the adopted technology company. If we conclude that there is significant uncertainty, the audit standard page 3 of 175
We are required 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 lead to the adoption of technology companies that cannot continue to operate.
（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 for adopting the financial information of entities or business activities in the technology company to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and assume full responsibility for the audit opinion.
We communicate with the management on the planned audit scope, schedule and major audit findings, including the noteworthy internal control defects 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 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. Zhonghui Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner)
Hangzhou, China Certified Public Accountant:
Report date: August 25, 2021
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Adopt Technology Co., Ltd
Notes to financial statements
From 2018 to January June 2021
1、 Basic information of the company
（1） Company profile
Adoptive Technology Co., Ltd. (hereinafter referred to as the company or the company) was formerly Jiangyin adoptive Technology Co., Ltd. (hereinafter referred to as the original adoptive company). The original adoptive company established the company by overall change with March 31, 2017 as the base date. The company was registered with Wuxi Administration for Industry and Commerce on September 27, 2017 and obtained the business license of enterprise legal person. The unified social credit code is 913202817641949253. Registered address: Longsha Industrial Park (Shuxin Village), Huashi Town, Jiangyin City. Legal representative: Army.
As of June 30, 2021, the registered capital was RMB 70526322, and the total share capital was 70526322 shares (par value of RMB 1 per share).
Basic organizational structure of the company: in accordance with national laws and regulations and the articles of association, the company has established a standardized multi-level governance structure composed of the general meeting of shareholders, the board of directors, the board of supervisors and the management; The board of Directors consists of four special committees and the office of the board of directors, including the strategy committee, the audit committee, the remuneration and assessment committee and the nomination committee. The company has technical department, R & D department, production department, quality department, procurement department, sales department, finance department, engineering department, internal audit department, office and other main functional departments.
The company belongs to the medical device industry. Business scope: research, production and development of chip dispensing needle, veterinary needle and stainless steel capillary; Hardware processing; Manufacturing and processing of rubber and plastic products; Self operated and acting as an agent for the import and export of various commodities and technologies, except for the commodities and technologies restricted or prohibited by the state. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments) licensed projects: production of class II medical devices; Production of class III medical devices; Class III medical device business; Production of sanitary articles and disposable medical articles; Disinfectant production (excluding hazardous chemicals); Road cargo transportation (excluding dangerous goods); Import and export agency (for items subject to approval according to law, business activities can be carried out only after approval by relevant departments, and the specific business items shall be subject to the approval results) general items: Sales of class II medical devices; Sales of sanitary supplies and disposable medical supplies; Sales of disinfectants (excluding hazardous chemicals); Production of class I medical devices; Sales of class I medical devices; Technical services, technical development, technical consultation, technical exchange, technology transfer and technology promotion; Production of labor protection articles; Sales of labor protection articles; Production of special labor protection articles; Sales of special labor protection articles; Hardware product manufacturing
