Audit report
Hxsz [2022] No. 21012860010 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) all shareholders:
1、 Audit opinion
We have audited the financial statements of Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) (hereinafter referred to as " Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) "), 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 financial position of Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) 2021 as of December 31, 2021 and the operating results and cash flows of 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 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) , 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) bad debt reserves for accounts receivable
1. Item description
Please refer to the accounting policies described in "III. important accounting policies and accounting estimates (x)" and "v. notes to consolidated financial statements (II)". As of December 31, 2021, the book balance of accounts receivable was 43054817107 yuan and the bad debt provision was 16167824933 yuan Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) the bad debt provision of accounts receivable is measured by the expected credit loss model. Since the book value of accounts receivable is significant and the management needs to involve complex judgment in the evaluation of bad debt reserves, we identify the bad debt reserves of accounts receivable as key audit matters.
2. Audit response
Our main audit procedures for bad debt reserves of accounts receivable are as follows:
(1) Evaluated and tested the rationality of internal control design and effectiveness of implementation related to bad debt provision for accounts receivable;
(2) Assess whether the accounting of bad debt provision of accounts receivable complies with the provisions of accounting standards for business enterprises by obtaining Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) accounts receivable bad debt provision provision policy and interviewing the management;
(3) Adopt the sampling method and implement the letter confirmation procedure for the balance of accounts receivable;
(4) Test the accuracy of the aging statement of accounts receivable, review the grouping of accounts receivable by the management, and check the confirmation basis and calculation process of expected credit loss rate of accounts receivable in different groups;
(5) Evaluate the rationality of the provision for bad debts of accounts receivable in combination with the interviews with major customers, letters and confirmation and the judgment of the management on the recovery of accounts receivable;
(6) For accounts receivable with single bad debt provision, the reason and rationality of single bad debt provision shall be reviewed by obtaining relevant judgment results of the court, legal documents, querying the operation of customers through open channels, interviewing lawyers and Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) management.
(II) accounting of inventory
1. Item description
Please refer to the accounting policies described in "III. important accounting policies and accounting estimates (XI)" and "v. notes to consolidated financial statements (VI)". As of December 31, 2021, the book balance of inventories was 64346183754 yuan and the inventory falling price reserve was 988050063 yuan. In view of the significant impact of inventory on the financial statements and the judgment of the management involved in the provision for inventory falling price, we identified the accounting of inventory as a key audit event.
2. Audit response
Our main audit procedures for inventory accounting are as follows:
(1) Evaluated and tested the rationality of internal control design related to Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) inventory accounting and the effectiveness of implementation;
(2) By consulting Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) relevant purchase contracts and orders, obtaining accounting policies related to inventory accounting and interviewing management, evaluate whether Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) inventory accounting principles comply with the provisions of accounting standards for business enterprises;
(3) Understand the reasons and rationality of the large ending balance of inventory in combination with Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) business type and interview with the company's management;
(4) Interviewed the person in charge of Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) finance, understood the company's inventory depreciation provision policy and impairment test method, and reviewed the inventory depreciation test process;
(5) Check the accuracy of cost calculation by conducting valuation test and cost analysis on inventory, and preparing inventory cost inversion table;
(6) Obtain the Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) annual inventory plan and implement the inventory supervision procedure;
(7) Interview Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) major suppliers to verify the cooperation between the company and such suppliers, purchase amount, whether there are contract disputes and whether there are related relationships;
(8) By sampling method, major suppliers are selected to confirm the purchase amount and closing balance in 2021.
4、 Other information
Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) 2021, 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 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) , terminate the operation or has no other realistic choice.
The management layer is responsible for supervising the financial reporting process of Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) .
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 the financial statements due to fraud or error, design and implement audit procedures to address 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) The purpose of expressing audit opinions is not to understand the effectiveness of internal control 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 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) 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 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) 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 the entity or business activities in Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) 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.
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 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.
Huaxing certified public accountants, Chinese Certified Public Accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Fuzhou, China April 13, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) unit: RMB currency: RMB
Project notes 2021 / 12 / 312020 / 12 / 31 project notes 2021 / 12 / 312020 / 12 / 31
Current assets: current liabilities:
Monetary capital v. (I) 2270608543918191487940 short term loans v. (XVI) 1684706326418248207709
The settlement reserve borrows from the central bank
Lending funds
Trading financial assets
