China Dive Company Limited(300526)
Special note of the board of directors on the company's 2021 non-standard opinion audit report
China Dive Company Limited(300526) (hereinafter referred to as "the company" and " China Dive Company Limited(300526) ") hired Asia Pacific (Group) accounting firm (special general partnership) (hereinafter referred to as "Asia Pacific Institute") as the auditor of the company's 2021 annual financial report. Asia Pacific (Group) accounting firm (special general partnership) audited the company's consolidated and parent company's balance sheet on December 31, 2021 and the consolidated and parent company's income statement in 2021 The financial statements with significant uncertainties and the notes to the statement of continuing equity are submitted to the shareholders. In accordance with the relevant provisions of the rules for the preparation and reporting of information disclosure of companies offering securities to the public No. 14 - handling of non-standard audit opinions and matters involved (revised in 2020) of the China Securities Regulatory Commission, the board of directors of the company made special explanations on the relevant matters involved in the audit report as follows: I. main contents involved in non-standard audit opinions
(I) contents of qualified opinions in the audit report
Due to the lack of relevant business documents for the recognition of sales revenue of RMB 197121 million in the company's operating revenue in 2020, the accountant of the company's 2020 annual report failed to implement corresponding audit procedures to obtain sufficient and appropriate audit evidence for the authenticity and accuracy of such revenue, and issued a qualified audit report on the company's 2020 financial statements.
In this year's audit, AsiaPacific Institute carried out inspection, confirmation, visit and other audit procedures for the elimination or change of reserved matters in the previous period. Due to the impact of limited audit scope, the Asia Pacific Institute failed to implement corresponding audit procedures for the recognition basis of sales revenue of RMB 123978 million, so as to obtain sufficient and appropriate audit evidence to confirm the authenticity and accuracy of such revenue. This matter has or may have an impact on the comparability of current data and corresponding data.
(II) contents of the significant uncertainty of going concern in the audit report
The net loss of the company in 2021 was 1428877 million yuan. As of December 31, 2021, China Dive Company Limited(300526) current liabilities were higher than current assets by 855501 million yuan. These events or circumstances indicate that there are major uncertainties that may lead to major doubts about the company's ability to continue as a going concern. This matter does not affect the audit opinion issued.
2、 Reasons and basis for issuing qualified opinions with paragraphs with significant uncertainty of going concern
(I) detailed reasons and basis for issuing qualified opinion audit report
According to Article 8 of the auditing standards of China for certified public accountants No. 1502 - issuing unqualified opinions in audit reports, certified public accountants shall express qualified opinions in case of any of the following circumstances: (I) after obtaining sufficient and appropriate audit evidence, the certified public accountants believe that the misstatement alone or combined has a significant impact on the financial statements, but it is not extensive; (II) certified public accountants are unable to obtain sufficient and appropriate audit evidence as the basis for forming audit opinions, but believe that the undetected misstatement (if any) may have a significant impact on the financial statements, but it is not extensive.
Due to the lack of relevant business documents for the recognition of sales revenue of RMB 197121 million in the company's operating revenue in 2020, China Dive Company Limited(300526) 2020 annual report accountants failed to implement corresponding audit procedures to obtain sufficient and appropriate audit evidence for the authenticity and accuracy of such revenue, and issued a qualified audit report on the company's financial statements in 2020. For this matter, the Asia Pacific Institute has implemented inspection, letter confirmation, visit and other audit procedures in the audit of the current financial statements. Due to the lack of shipping documents, receipt documents and limited audit procedures, the Asia Pacific Institute failed to implement corresponding audit procedures for the recognition basis of sales revenue of RMB 123978 million, so as to obtain sufficient and appropriate audit evidence to confirm the authenticity and accuracy of such revenue. Asia Pacific Institute is unable to obtain sufficient and appropriate audit evidence to judge the authenticity and accuracy of the sales revenue of RMB 123978 million in the operating revenue in 2020, so it is unable to determine the possible impact of the above matters on China Dive Company Limited(300526) financial status, operating results and cash flow. Asia Pacific Research Institute believes that the above misstatements, if any, will have a significant impact on the financial statements, but only limited to certain elements, accounts or projects, and are not a major part of the financial statements. Such misstatements will not affect China Dive Company Limited(300526) China Dive Company Limited(300526) delisting indicators and risk warning indicators, and will not lead to changes in the nature of the company's profits and losses. Therefore, they are not extensive. According to the provisions of the auditing standards, the Asia Pacific exchange has expressed reservations on these matters.
(II) detailed reasons and basis for issuing the audit report with significant uncertainty of going concern
According to Article 21 of auditing standards for Chinese certified public accountants No. 1324 - going concern: "if the assumption of going concern is appropriate, but there is significant uncertainty, and the financial statements have fully disclosed the significant uncertainty, the certified public accountant shall express an unqualified opinion and add a separate part under the title of" significant uncertainty related to going concern "to the audit report, Remind the users of the financial statements to pay attention to the disclosure of relevant matters in the notes to the financial statements, explain that these matters or circumstances indicate that there are major uncertainties that may lead to major doubts about the going concern ability of the audited entity, and explain that the matter does not affect the audit opinion ".
Asia Pacific Institute believes that there are significant uncertainties in the company's continuing operation, and the financial statements have fully disclosed the significant uncertainties. Therefore, the paragraph of significant uncertainties related to continuing operation is added in the 2021 audit report of the company where Asia Pacific is located, in order to draw the users of the financial statements to pay attention to the relevant disclosures in the notes to the financial statements.
3、 Opinions of the board of directors
The board of directors of the company believes that it understands and recognizes the qualified opinion audit report with significant uncertainty of going concern issued by Asia Pacific (Group) accounting firm (special general partnership), and draws the attention of investors to investment risks. The above emphasized matters are mainly to remind the users of financial statements that they are not in obvious violation of accounting standards, systems and relevant information disclosure norms.
The board of directors and management of the company will actively take effective measures to maintain the sustainable, stable and healthy development of the company and effectively safeguard the rights and interests of all shareholders and investors.
China Dive Company Limited(300526) board of directors April 22, 2022
