Tibet Summit Resources Co.Ltd(600338) 2021 annual financial statements and audit report contents
Content page
Audit report 1-4
Consolidated and company balance sheet 5-6
Consolidated and corporate income statement 7
Consolidated and company cash flow statement 8
Consolidated statement of changes in owner’s equity 9
Statement of changes in owner’s equity of the company 10
Notes to financial statements 11-98
audit report
Zhong Hui Zi (2022) No. 03947 Tibet Summit Resources Co.Ltd(600338) all shareholders:
1、 Audit opinion
We have audited the financial statements of Tibet Summit Resources Co.Ltd(600338) (hereinafter referred to as Tibet Summit Resources Co.Ltd(600338) company), including the consolidated and company’s balance sheet as of December 31, 2021, the consolidated and company’s income statement, consolidated and company’s cash flow statement, consolidated statement of changes in owner’s equity, 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 financial position of Tibet Summit Resources Co.Ltd(600338) company as of December 31, 2021 and the consolidated and operating results and cash flow of the company 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 Tibet Summit Resources Co.Ltd(600338) 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.
3、 Key audit matters (Continued)
Revenue recognition
Item description
Tibet Summit Resources Co.Ltd(600338) company mainly sells zinc concentrate powder, lead concentrate powder and copper concentrate powder (hereinafter referred to as “metal concentrate powder”). As described in note 5.37 of the financial statements, Tibet Summit Resources Co.Ltd(600338) company realized an operating income of 204862910539 yuan in 2021. As also described in note 3.25 of the financial statements, Tibet Summit Resources Co.Ltd(600338) company recognized the sales income of metal concentrate powder after the control of goods was transferred to customers, For those with price adjustment clauses in the sales contract, the company will adjust the income amount according to the fair price of metal refined powder at the end of the reporting period.
Since operating revenue is the main driving indicator of the net profit of Tibet Summit Resources Co.Ltd(600338) company, there is an inherent risk that the management of Tibet Summit Resources Co.Ltd(600338) company manipulates the time point of revenue recognition in order to achieve specific goals or expectations. Therefore, we identify the recognition of operating revenue as a key audit matter.
Audit response
Our audit procedures for revenue recognition mainly include:
Understand and evaluate the design and operation effectiveness of key internal controls related to revenue recognition;
Check the sales contract, identify the contract terms and conditions related to the transfer of commodity control, and evaluate whether the revenue recognition time point of Tibet Summit Resources Co.Ltd(600338) company meets the requirements of accounting standards for business enterprises;
Select a sample of the revenue transactions recorded in this year, check the delivery note, transportation document and customs declaration form, and evaluate whether the relevant revenue recognition complies with the accounting policies of Tibet Summit Resources Co.Ltd(600338) company for revenue recognition;
Select samples for the mining warehousing volume recorded in this year and check whether the mining volume recorded in the book is consistent with the mining record account;
Select samples for the beneficiation volume recorded in this year and check whether the beneficiation volume recorded in the book is consistent with the beneficiation record account;
For the sales price confirmed by Tibet Summit Resources Co.Ltd(600338) company this year, select the sample to compare with the base metal quotation of LME (London Metal Exchange) in the same period, and check whether there is any significant deviation between them;
Check whether there are sales that have not been subject to price adjustment at the end of the reporting period. If there are the above situations, review whether the pricing of these sales revenue is fair;
Combined with the inventory supervision procedure, select samples for the revenue transactions recorded before the balance sheet date, and check the date of transportation documents to evaluate whether the revenue is recorded in the appropriate accounting period.
Tibet Summit Resources Co.Ltd(600338) company management is responsible for other information. Other information includes the information covered in the 2021 annual report of Tibet Summit Resources Co.Ltd(600338) company, 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
Tibet Summit Resources Co.Ltd(600338) the management of the company (hereinafter referred to as 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 Tibet Summit Resources Co.Ltd(600338) company, disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Tibet Summit Resources Co.Ltd(600338) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Tibet Summit Resources Co.Ltd(600338) 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.
6、 Responsibilities of certified public accountants for the audit of financial statements (Continued)
(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 Tibet Summit Resources Co.Ltd(600338) 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 Tibet Summit Resources Co.Ltd(600338) 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 for the financial information of entities or business activities in Tibet Summit Resources Co.Ltd(600338) company 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.
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.
Zhonghua Certified Public Accountants (special general partnership) Chinese certified public accountant
(project partner)
Chinese certified public accountant
Shanghai, China April 18, 2022
Tibet Summit Resources Co.Ltd(600338) 2021 consolidated and balance sheet of the company (unless otherwise specified, the amount unit is RMB)
Closing balance opening balance closing balance opening balance
Notes to assets
Consolidated company
current assets
Monetary capital 5.11044285211229388036954555252525713413652675
Trading financial assets 5.2112296116 —
Derivative financial assets 5.3 – 20826587 —
Notes receivable-
