Notes to financial statements
Note 1: basic information of the company (I) historical evolution
Shareate Tools Ltd(688257) (hereinafter referred to as the company) is a joint stock limited company transformed from Suzhou Xinrui Engineering Tools Co., Ltd. (hereinafter referred to as Xinrui Engineering Tools Co., Ltd.). It was incorporated in the Administration for Industry and Commerce of Suzhou Industrial Park on August 25, 2005. The company's unified social credit code is 91320 Xinxing Ductile Iron Pipes Co.Ltd(000778) 67054xf.
With the approval of the document "zjxk [2021] No. 2759" of the China Securities Regulatory Commission, the company issued 23.2 million RMB common shares (A shares) to the public for the first time, with a par value of 1 yuan per share, and was listed on the Shanghai Stock Exchange on October 27, 2021.
After the public offering, the total share capital of the company is 92.8 million shares and the registered capital is 92.8 million yuan. The relevant industrial and commercial change registration procedures were completed on November 13, 2021. （2） Branches
As of December 31, 2021, the company has one branch:
Branch Name: Shareate Tools Ltd(688257) Xixiashu branch
Registration authority: Changzhou National High tech Industrial Development Zone (Xinbei District) administrative examination and approval Bureau
Unified social credit code No.: 91320411ma1me3g139
Place of business: No. 2061, building 1, No. 19, Lingshan Middle Road, Xixiashu Town, Xinbei District, Changzhou City
Person in charge: Song Qiao
Date of establishment: January 6, 2016
Business scope: Sales of powder metallurgy products (except dangerous goods). (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments)
（3） Organizational structure of the company
The basic organizational structure of the company: the general meeting of shareholders is the authority of the company, the board of directors is the executive body of the general meeting of shareholders, the general manager is responsible for the daily operation and management of the company, and the board of supervisors is the internal supervision organization of the company.
The company sets up its internal organization according to its own business characteristics and management range. The headquarters of the company is equipped with the president's office, human resources department, business information department, finance department, International Department, technology center, securities affairs department, audit department and other functional departments. According to the product category characteristics or regional distribution, the company has five profit centers: engineering tool business department, mining alloy business department, precision parts business department, bar business department and profile business department, and one cost center of mixture plant. Each business department has functional departments such as marketing, material procurement, technology, quality control and manufacturing according to the actual needs.
Legal representative of the company: wuhehong (IV) registration place and organizational form of the company
Registered address of the company: No. 133, Shuangma street, Weiting Town, Suzhou Industrial Park
Address of the company's headquarters: No. 133, Shuangma street, Weiting Town, Suzhou Industrial Park
Organizational form of the company: joint stock limited company. （5） Business nature and main business activities of the company
Business scope of the company: manufacturing and sales of mining rock drilling tools and powder metallurgy products; General machinery and electrical machinery maintenance services; R & D and technical services of new material technology; The export of self-produced products and technologies and the import of necessary mechanical equipment, instruments and meters, spare parts, raw and auxiliary materials and technologies (except for the goods and technologies limited or prohibited by the state); Industrial investment. (for projects that must be approved according to law, business activities can be carried out only after being approved by relevant departments) (VI) approval and submission of financial reports
The financial report was approved and submitted at the 9th meeting of the 4th board of directors on April 19, 2022.
Note 2: scope of consolidated financial statements
Full name of subsidiary holding voting rights registered capital business scope
Proportion proportion
R & D, manufacturing and sales of powder metallurgy products and tooling with an output of 16 million yuan; Qianjiang Xinrui cemented carbide tools Co., Ltd. 100.00% 100.00% mechanical equipment leasing and maintenance; Shi (hereinafter referred to as Qianjiang Xinrui company) provides technical services and technical consultation for coin oil and natural gas storage and transportation facilities.
Mining tools and accessories, powder metallurgy products, petroleum machinery and equipment and accessories Industrial diamond is produced and sold by Suzhou sride import and Export Co., Ltd. (sales of products, tools and labor protection articles with 100.00% 100.00% 5 million yuan, hereinafter referred to as sride company); Enterprise management consulting; Engage in the import and export business of the above commodities and technologies.
Australasian shareate tools mining tricone bit and impactor Pty Ltd (i.e. the sales limited company of Australian cutting-edge tools with 100.00% 100.00% 24 million Australian dollars and other rock drilling tools products, hereinafter referred to as Australian cutting-edge company); Industrial investment.
Australasian mining services Pty Ltd (i.e. Australia Mining Services Co., Ltd. with products and accessories required for the well market of 70.00% 70.00% 901348131 Australian dollars, hereinafter referred to as AMS Australia) sales and services
Full name of subsidiary holding voting rights registered capital business scope
Proportion proportion
American Mining Services LLC mine exploration and production drilling (i.e. American Mining Services Co., Ltd., hereinafter referred to as American AMS company) sales and services of products and accessories required by 70.60% 70.60% US $125000000 well market
Production, R & D and sales of new cemented carbide materials; Production, R & D and sales of rock drilling tools; Production, R & D and sales of cutting tools; Wuhan Xinrui Alloy Tools Co., Ltd. (hereinafter referred to as Wuhan Xinrui Co., Ltd. for the production, R & D and marketing of people's machinery and equipment with 100% 100% 360 million yuan)
Sale; Export of self-produced products and technologies and import and export of required mechanical equipment, instruments and meters, spare parts, raw and auxiliary materials and technologies.
See Notes "7. Change of consolidation scope" and "8. Equity in other entities" for specific changes in the scope of consolidated financial statements in the current period. Note 3: preparation basis of financial statements 1 Preparation basis
The financial statements of the company are based on the assumption of continuous operation, according to the actual transactions and events, and in accordance with the accounting standards for business enterprises - basic standards, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance (hereinafter collectively referred to as "accounting standards for business enterprises"), And the preparation of the disclosure provisions of the rules for the preparation of information disclosure by companies that offer securities to the public No. 15 - General Provisions on financial reports (revised in 2014) of the China Securities Regulatory Commission. 2. Going concern
According to the information currently available from the company's comprehensive evaluation, there are no factors that significantly affect the company's sustainable operation ability within 12 months from the end of the reporting period. This financial statement is prepared based on the assumption of the company's sustainable operation. Note 4: important accounting policies and accounting estimates specific accounting policies and accounting estimates tips:
The company and its subsidiaries are mainly engaged in the manufacturing and sales of cemented carbide and tools. According to the actual production and operation characteristics and the provisions of relevant accounting standards for business enterprises, the company and its subsidiaries have formulated several specific accounting policies and accounting estimates for transactions and events such as revenue recognition. See note 4 and 31 "revenue" for details. 1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the financial status, operating results, cash flow and other relevant information of the enterprise. 2. Accounting period
The accounting period of the company is divided into annual and interim periods. The fiscal year starts from January 1 to December 31 of the Gregorian calendar. Shorter than one accounting year is the interim accounting period, which includes monthly, quarterly and semi annual. 3. Business cycle
The normal business cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents. The company takes one year (12 months) as its normal business cycle. 4. Recording currency
The company takes RMB as the bookkeeping base currency. The Australian subsidiary and the U.S. subsidiary are engaged in overseas operations, and the currencies of Australian dollar and US dollar in the main economic environment in which they operate are respectively selected as the bookkeeping base currency. The preparation amount of this financial statement is in RMB. 5. Accounting treatment methods for business combinations under the same control and not under the same control
1) Business combination under the same control:
For a business combination under the same control, if the combining party takes the payment of cash, the transfer of non cash assets or the assumption of liabilities as the combination consideration, the share of the book value of the owner's equity of the combined party in the consolidated financial statements of the final controller shall be taken as the initial investment cost of the long-term equity investment on the combination date. The capital reserve shall be adjusted for the difference between the initial investment cost of long-term equity investment and the book value of cash paid, non cash assets transferred and debts assumed; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
If the combining party takes the issuance of equity securities as the merger consideration, the share of the book value of the owner's equity of the combined party in the consolidated financial statements of the final controller shall be taken as the initial investment cost of the long-term equity investment on the merger date. According to the total par value of the issued shares as the share capital, the capital reserve shall be adjusted for the difference between the initial investment cost of long-term equity investment and the total par value of the issued shares; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
All directly related expenses incurred by the combining party for business combination,
