Shenzhen Jame Technology Corp.Ltd(300868)
Audit report
Dxsz [2022] No. 500176
Daxin Certified Public Accountants (special general partnership)
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 22nd floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
audit report
Dxsz [2022] No. 500176 Shenzhen Jame Technology Corp.Ltd(300868) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shenzhen Jame Technology Corp.Ltd(300868) (hereinafter referred to as "the 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 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 your company as of December 31, 2021 and the operating results and cash flows of your company and the parent 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. We are independent of the code of ethics of your company and perform other professional responsibilities in accordance with the code of ethics of your company.
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.
The key audit matters identified in our audit are summarized as follows:
(I) revenue recognition
1. Item description
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 22nd floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
As stated in the operating income in note V (36) to the financial statements, the operating income recognized by your company for selling intelligent terminal accessories in 2021 is 71499383544 yuan. As the amount of revenue is significant, we recognize the revenue recognition of your company as a key audit matter.
2. Audit response
(1) Understand and evaluate whether the design of key internal control related to revenue recognition of the management is reasonable, and test whether the operation is effective;
(2) Check the sales contracts of major customers, identify the contract terms related to the transfer of commodity control, evaluate whether the revenue recognition time point of the company meets the requirements of the accounting standards for business enterprises, and review whether the relevant accounting policies are consistently applied;
(3) Combined with the audit of accounts receivable, select the letter sales volume of main customers;
(4) Implement analysis procedures for operating revenue, analyze the changes of gross profit margin in each period, and review the rationality of revenue recognition; (5) For sales business in China, check the vouchers related to revenue recognition, such as contracts or orders, shipping orders and countersignature orders, by sampling;
(6) For export sales business, check the shipping note, customs declaration form, packing list, etc. by sampling to check the authenticity of business income;
(7) Perform a cut-off test on operating revenue to confirm whether the revenue is recorded in the correct accounting period.
(8) Carry out post period payment collection inspection for major customers.
(II) inventory
1. Item description
As stated in note V (VII) of the financial statements, the book balance of your company's inventory on December 31, 2021 is 12635303906 yuan, and the inventory falling price reserve is 1945822391 yuan; As the amount of inventory is significant and the provision for inventory falling price reserves involves important judgment of the management, we determine the inventory of your company as a key audit event.
2. Audit response
(1) Understand and evaluate whether the design of key internal control related to inventory management is reasonable, and test whether the operation is effective;
(2) Obtain the inventory list, implement the inventory supervision procedure, and check the quantity and status of the inventory;
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 22nd floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
(3) Obtain the inventory age list at the end of the period, and analyze and review the inventory with a long age to evaluate the rationality of the provision for inventory falling price;
(4) Analyze the changes of inventories in each period, and perform valuation test on major inventories to check the accuracy of inventory carrying forward operating costs;
(5) Combined with the audit of accounts payable, select major suppliers to confirm the purchase amount of each period;
(6) Check and analyze the price changes of the company's products and raw materials;
(7) Obtain the inventory falling price reserve accrual table, review the net realizable value of inventory and the amount of inventory falling price reserve accrual determined by the company's management, and check whether the accrual method is implemented in accordance with accounting policies.
4、 Other information
The management of your company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in your 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 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.
In preparing the financial statements, the management is responsible for assessing the company's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate the company, terminate the operation or has no other realistic choice.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558
Xueyuan International Tower, 15 / F, No. 1, Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668
No.1zhichun Road, Haidian dist, 22nd floor, College International Building. Website: www.daxincpa com. cn.
Postal Code: Beijing, China 100083
The management is responsible for supervising the financial reporting process of your 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:
(I) 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.
(II) understand the internal control related to audit to design appropriate audit procedures.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management's use of the going concern assumption. 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 your 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 your company to be unable to continue its business. (V) evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in your 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.
Wuyige certified public accountants LLP telephone: + 86 (10) 82330558 Xueyuan International Tower, 15 / F, No. 1 Zhichun Road, Haidian District, Beijing Fax: + 86 (10) 82327668 no.1zhichun Road, Haidian dist, 22nd floor, College International Building. Website: Internet: www.daxincpa com. cn. Postal Code: Beijing, China 100083
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 statements to the management on compliance with the professional ethics requirements related to independence, and it may be reasonable to communicate with the management
