Beijing Thunisoft Co.Ltd(300271)
audit report
Dhsz [2022] 006832
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Beijing Thunisoft Co.Ltd(300271)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page I. audit report 1-7 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3 consolidated cash flow statement 4 consolidated statement of changes in shareholders’ equity 5-6 parent company balance sheet 7-8 parent company income statement 9 parent company cash flow Table 10 statement of changes in shareholders’ equity of parent company 11-12 notes to financial statements 1-96
Audit report
Dahuashen Zi [2022] 006832 Beijing Thunisoft Co.Ltd(300271) all shareholders:
1、 Audit opinion
We have audited the financial statements of Beijing Thunisoft Co.Ltd(300271) (hereinafter referred to as Beijing Thunisoft Co.Ltd(300271) company), 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 consolidated and parent company’s financial position of Beijing Thunisoft Co.Ltd(300271) company 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 Beijing Thunisoft Co.Ltd(300271) 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、 Highlight matters
As stated in note 15 to the financial statements, Beijing Thunisoft Co.Ltd(300271) company received the notice of filing a case from the Beijing Municipal Commission of supervision on September 1, 2021, and the Beijing Municipal Commission of supervision decided to file a case for review / investigation on the disciplinary / illegal issues of Beijing Thunisoft Co.Ltd(300271) company’s suspected bribery. As of the date of issuance of the audit report, the case is still in the review stage of the procuratorial organ, and the concluding opinions or decisions of the procuratorial organ on the above-mentioned case have not been received. The contents of this paragraph shall not affect the issued audit opinions.
4、 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. 1. Goodwill impairment;
2. Capitalization of development expenditure;
（1） Goodwill impairment
1. Event description
Please refer to note 4 (22) and note 17 of note 6 to the consolidated financial statements.
As of December 31, 2021, Beijing Thunisoft Co.Ltd(300271) company’s original book value of goodwill was 1661066100 yuan, the provision for goodwill impairment was 93.013 million yuan, and the book value of goodwill was 156853000 yuan, accounting for 17.52% of the total assets in the consolidated financial statements in 2021 Beijing Thunisoft Co.Ltd(300271) company’s goodwill mainly comes from the acquisition of subsidiaries such as Lianyi Technology Co., Ltd. and Beijing wanhu Network Technology Co., Ltd.
The management shall conduct impairment test on goodwill at the end of each year and adjust the book value of goodwill according to the results of impairment test. The results of goodwill impairment test largely depend on the estimates and assumptions made by the management, especially the income, gross profit margin, operating expenses, discount rate and other major judgments of the management during the prediction period of the relevant asset group. There are significant uncertainties in these estimates. Affected by the management’s judgment on the future market and the economic environment, the adoption of different estimates and assumptions will have a great impact on the recoverable value of the assessed goodwill.
As goodwill has a significant impact on the financial statements and the impairment of goodwill depends on the significant accounting estimates and judgments of the management, we recognize it as a key audit event.
2. Audit response
Our important audit procedures for goodwill impairment include:
(1) Understand and evaluate the rationality of the internal control design related to the goodwill impairment test of the management, and test the effectiveness of the operation of relevant internal control;
(2) Review the recognition of the asset group and the allocation method of goodwill by the management;
(3) Discuss with the company’s management the methods used in the goodwill impairment test, the assumptions of key evaluation, the selection of parameters, the rationality of income, gross profit margin, operating expenses and cash flow discount rate in the prediction period;
(4) Discuss the methods used in the goodwill impairment test, the assumptions of key evaluation, the selection of parameters, the rationality of income, gross profit margin, operating expenses and cash flow discount rate in the prediction period with the experts of external evaluation institutions hired by the company’s management;
(5) Compare the key assumptions and parameters used by the company’s management in the goodwill impairment test in previous years, revenue, gross profit margin, operating expenses and cash flow in the prediction period with the key assumptions and parameters used in this year and the operating performance of this year, so as to evaluate the reliability and accuracy of the management’s prediction process, and ask the management for the reasons for the significant difference; (6) Evaluate the rationality of key assumptions and parameters used in the goodwill impairment test based on the contract industry standards, macro-economy and the development trend of the industry;
(7) Evaluate the independence, objectivity, experience and qualification of the external evaluation organization hired by the company’s management;
(8) Whether the calculation of future net present value of cash flow is accurate;
(9) Assess whether the management’s disclosure of goodwill and its impairment estimation results and financial statements on December 31, 2021 is appropriate.
Based on the audit work performed, we believe that the judgment made by the management in the goodwill impairment test is reasonable.
（2） Capitalization of development expenditure
1. Event description
Please refer to note 4 (21) and note 16 of note 6 to the consolidated financial statements.
Beijing Thunisoft Co.Ltd(300271) company spent 172888400 yuan in the development stage in 2021. The capitalization amount of 399 Leysen Jewelry Inc(603900) yuan in the current period due to project development accounted for 4.47% of the total assets at the end of the period Beijing Thunisoft Co.Ltd(300271) company has a large amount of R & D expenditure this year, and the management’s major judgments on the division of R & D stage and development stage and whether the development expenditure meets the capitalization conditions specified in the accounting standards will have a great impact on the current net profit.
Since the capitalization of development expenditure involves the significant judgment of the management, we recognize the development expenditure as a key audit matter.
2. Audit response
Our important audit procedures for the capitalization of development expenditure include:
(1) Understand and evaluate the rationality of management’s internal control design related to development expenditure, and test the effectiveness of relevant internal control operation;
(2) Assess whether the capitalization policy of development expenditure adopted by the management complies with the relevant provisions of the accounting standards for business enterprises;
(3) Discuss with the management the evaluation and analysis made by the company when it capitalizes the current development expenditure, including whether the collected R & D expenditure is related to the capitalized project, whether the division of research stage and development stage is reasonable, whether the capitalization of development expenditure complies with the provisions of accounting standards for business enterprises, as well as the judgment basis and relevant assumptions of the technical feasibility of the project and how to generate future economic benefits;
(4) For the projects in which the development expenditure is capitalized in the current period, check the documents related to the capitalization of development expenditure, including but not limited to the project initiation documents and feasibility study reports, and check whether the capitalization time point of each project is accurate;
(5) Take samples of development expenditure accounting records, check relevant original vouchers and final project progress report, and verify the authenticity and accuracy of development expenditure;
(6) Assess whether the financial statement disclosure of management’s development expenditure is appropriate.
Based on the audit work performed, we believe that the judgment made by the management in the accounting of development expenditure is reasonable.
5、 Other information
The management of Beijing Thunisoft Co.Ltd(300271) company is responsible for other information. Other information includes the information covered in the 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 understand 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.
6、 Responsibilities of management and governance for financial statements
Beijing Thunisoft Co.Ltd(300271) the management of the company 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 due to fraud or error.
When preparing the financial statements, the management of Beijing Thunisoft Co.Ltd(300271) company is responsible for evaluating the continuous operation ability of Beijing Thunisoft Co.Ltd(300271) company, disclosing matters related to continuous operation (if applicable), and applying the assumption of continuous operation, unless the management plans to liquidate Beijing Thunisoft Co.Ltd(300271) company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Beijing Thunisoft Co.Ltd(300271) company.
7、 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 opinions 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 a conclusion on the appropriateness of the going concern assumption used by the management. 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 Beijing Thunisoft Co.Ltd(300271) company. If we conclude that there are significant uncertainties, the auditing standards require us to draw the attention of report 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 Beijing Thunisoft Co.Ltd(300271) 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 Beijing Thunisoft Co.Ltd(300271) company 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 have also abided by and independence
