Audit report Jiangsu Jiejie Microelectronics Co.Ltd(300623)
Rongcheng Shenzi [2022] No. 215z0051 Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1. Audit report
2. Consolidated balance sheet 1
3. Consolidated income statement
two
4. Consolidated cash flow statement
three
5. Consolidated statement of changes in owner's equity
four
6. Balance sheet of parent company
five
7 profit statement of parent company
six
8. Cash flow statement of parent company
seven
9. Statement of changes in owner's equity of the parent company
eight
10 notes to financial statements 9-86
Audit report
Rong Cheng Shen Zi [2022] No. 215z0051 Jiangsu Jiejie Microelectronics Co.Ltd(300623) all shareholders:
1、 Audit opinion
We have audited the financial statements of Jiangsu Jiejie Microelectronics Co.Ltd(300623) (hereinafter referred to as Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 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 consolidated and parent company's financial position of Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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.
(I) revenue recognition
1. Item description
See notes III, 22 and V, 35 to the financial statements
In 2021, Jiangsu Jiejie Microelectronics Co.Ltd(300623) company's consolidated operating income was 177280086184 yuan, mainly from the sales of power semiconductor discrete devices and power semiconductor chips.
Jiangsu Jiejie Microelectronics Co.Ltd(300623) company's product sales revenue recognition mode is: after the company signs a framework agreement with the customer, the customer places an order with the company, and the company organizes production and delivers goods on time after receiving the order. China's sales revenue is recognized. The company recognizes the revenue according to the order and delivery order and after the products are accepted by the customer; The revenue from export sales is recognized after the company completes the product export declaration formalities and obtains the bill of lading according to the order and delivery order.
As revenue is one of the company's key performance indicators, 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 identify revenue recognition as a key audit matter. 2. Audit response
Our relevant procedures for revenue recognition mainly include:
(1) Understand and test the design and operation of key internal control related to revenue recognition of the management, and evaluate its effectiveness;
(2) Implement analytical procedures for income and cost, including: analysis of monthly income, cost and gross profit fluctuation in the current period, comparative analysis of income, cost and gross profit margin of main products in the current period with that in the previous period, and evaluate the rationality of changes in income related indicators;
(3) Select samples from the accounting records and delivery records of sales revenue, check the contract orders, delivery orders, invoices and other information related to the sales, select samples according to the amount of customer transactions, implement the letter confirmation procedure, and evaluate the authenticity and integrity of revenue recognition;
(4) For export sales, check the sales records with export sales documents such as export declaration form, freight bill of lading and sales invoice, and print relevant export data information from the customs to verify the authenticity and integrity of export sales revenue;
Holding documents to evaluate whether income is recorded in the appropriate accounting period.
Based on the above work results, we believe that the relevant evidence can support the management's judgment and estimation on revenue recognition.
(II) provision for bad debts of accounts receivable
1. Item description
See notes III and 8 and notes V and 4 to the financial statements
On December 31, 2021, Jiangsu Jiejie Microelectronics Co.Ltd(300623) the book balance of accounts receivable was 34054886590 yuan
The balance of bad debt provision is 1728434143 yuan.
The management divides the accounts receivable into several combinations according to the characteristics of credit risk. On the basis of the combination, with reference to the experience of historical credit loss, combined with the current situation and the prediction of forward-looking information, the management calculates the expected credit loss through default risk exposure and expected credit loss rate, and recognizes the bad debt provision.
As the balance of the above accounts receivable is significant, and the provision for bad debts involves significant accounting estimates and judgments, especially the determination of the expected credit loss rate, we regard this matter as a key audit matter.
2. Audit response
The relevant procedures implemented by us for bad debt provision of accounts receivable mainly include:
(1) Understand, evaluate and verify Jiangsu Jiejie Microelectronics Co.Ltd(300623) the internal control related to the division of accounts receivable portfolio and the calculation of expected credit loss;
(2) Evaluate whether the calculation model and method of expected credit loss used by the management meet the requirements of accounting standards; (3) Assess whether the division of accounts receivable portfolio and the judgment of common risk characteristics of the management are reasonable;
(4) Evaluate the rationality of the selection of historical reference period and verify the reliability of key data used in the calculation of historical default rate, including historical credit loss data of each portfolio, distribution data of accounts receivable in the whole duration and other parameters;
(5) Understand the factors considered by the management in the forward-looking information prediction, including the prediction of changes in the future economy, expected unemployment rate, market environment and customer conditions, and evaluate its rationality;
(6) Obtain the calculation documents of the management on the expected credit losses of different portfolios and verify the accuracy of their calculation. Based on the above work results, we believe that the relevant evidence can support the management's judgment and estimation of bad debt provision for accounts receivable.
4、 Other information
Jiangsu Jiejie Microelectronics Co.Ltd(300623) the management of the company (hereinafter referred to as the management) is responsible for other information. The information in our annual audit report does not include other information. 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
Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 caused by fraud or error.
When preparing the financial statements, the management is responsible for evaluating the sustainable operation ability of Jiangsu Jiejie Microelectronics Co.Ltd(300623) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Jiangsu Jiejie Microelectronics Co.Ltd(300623) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 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 Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 Jiangsu Jiejie Microelectronics Co.Ltd(300623) 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 Jiangsu Jiejie Microelectronics Co.Ltd(300623) company to express audit opinions on the financial statements. We are responsible for guiding, supervising and executing the group audit, and assume 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 be reasonably considered to affect our independence, as well as relevant precautions
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.
There is no text on this page, which is the signature and seal page of the audit report Jiangsu Jiejie Microelectronics Co.Ltd(300623) Rong Cheng Shen Zi [2022] No. 215z0051.
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Pan Rubin (project partner) Chinese certified public accountant:
Ma Yunfeng
Beijing, China Certified Public Accountant:
Zhou Xinyue
April 19, 2022
