Songcheng Performance Development Co.Ltd(300144)
Annual financial report for 2021
April 2022
Annual financial report for 2021
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: April 22, 2022
Name of audit institution: Lixin Certified Public Accountants (special general partnership)
Name: Wang Yibin, certified public accountant
Body of audit report
Xin Hui Shi Bao Zi [2022] No. za11425 Songcheng Performance Development Co.Ltd(300144) all shareholders:
1、 Audit opinion
We have audited the financial statements of Songcheng Performance Development Co.Ltd(300144)
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 Songcheng Performance Development Co.Ltd(300144) , 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) revenue recognition the company implements the accounting standards for Business Enterprises No. 14 - Revenue (hereinafter referred to as "new revenue". The main audit procedures we implement for revenue recognition include: entry standards ") Songcheng Performance Development Co.Ltd(300144) 's operating income is mainly from on-site performance of culture and art. 1. Understand and evaluate the design and operation effectiveness of internal control related to revenue recognition of the company; Income. 2. Check the contracts signed by the company, identify the contract terms and articles related to the recognition of operating income, and evaluate whether the recognition of the company's income meets the requirements of the new income standard according to the confirmation of the income from on-site performance of culture and art as shown in note V (27) of the financial report; The specific principles of recognition are as follows: the company provides scenic spot play and on-site performance services. 3. Implement the letter confirmation procedure to verify the authenticity of the balance of accounts receivable and the amount of sales revenue, and the scenic spot formulates different ticket prices according to the types of tourists, so that tourists can buy the integrity of the door; After the ticket is checked through the gate and enters the park, the owner has the right to watch the live performance in the scenic spot. 4. Verify the current right of the company's income by checking the order record data of the business system or the third-party platform. When the ticket amount has been collected or the right to receive payment has been obtained, confirm the accuracy and integrity;
Revenue realization. 5. Analyze the operating income in combination with the amount of operating income, cash flow and tax
In 2021, the income from on-site performance of culture and art was 960863700 yuan, accounting for the logical rationality of income recognition judged by the Consolidated Fund; Compare the company's revenue in the same period and analyze 81.09% of the total revenue. As income is one of the key performance indicators of the company, it often changes; It is possible that the management manipulates the revenue confirmation in order to achieve specific goals or expectations. 6. By sampling, we check the supporting documents related to revenue recognition, including the inherent risks recognized systematically. Therefore, we regard revenue recognition as a key audit matter. Order, entry form, collection voucher, gate record, ticket delivery record, etc. to evaluate the occurrence, authenticity and deadline of operating revenue.
(II) impairment test of long-term equity investment of Huafang Group Inc. (formerly: Beijing Huafang Technology Co., Ltd.)
As listed in note VII (8) to the consolidated financial statements, as of 2021, our audit procedures for impairment test of long-term equity investment mainly include:
On December 31, the effectiveness of the original book value of long-term equity investment of Huafang Group Inc. (formerly: Beijing huafangke 1. Understand and evaluate the design and Operation Technology Co., Ltd. of the company's internal control related to the impairment of long-term equity investment) was 3505666700; Yuan, the provision for impairment of long-term equity investment has been withdrawn, and the book value is 1861297300 yuan. 2. Understand and evaluate the operating results and financial status of the invested enterprise, and discuss with the management, with a value of 1644369400 yuan. The methods used in evaluating the impairment test of long-term equity investment include predicting future income, we believe that the amount of impairment of long-term equity investment has a significant impact on the financial statements, the rationality of assumptions such as cash flow discount rate, and the judgment and evaluation of the profitability of components; And the evaluation and testing require the management to make significant judgments, so we recognize this 3. Understanding and evaluating the competence and professional quality of the external evaluation experts employed by the management and the impairment evaluation of the assets as key audit matters. Objectivity;
4. We hired external appraisers to assist us in the review of impairment test. We considered the competence, professional quality and objectivity of the reviewers;
5. We evaluate whether the evaluation method of impairment test of long-term equity investment is reasonable;
6. We evaluate whether the key assumptions of the impairment test of long-term equity investment are appropriate;
7. We evaluate whether the calculation process of the predicted future net cash flow and the calculation model of the discount rate in the calculation process of the impairment test of long-term equity investment are reasonable.
4、 Other information
Songcheng Performance Development Co.Ltd(300144) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Songcheng Performance Development Co.Ltd(300144) 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.
When preparing the financial statements, the management is responsible for assessing the going concern ability of Songcheng Performance Development Co.Ltd(300144) the company, disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The management is responsible for supervising the financial reporting process of Songcheng Performance Development Co.Ltd(300144) .
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 in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(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 Songcheng Performance Development Co.Ltd(300144) sustainable operation ability. 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 Songcheng Performance Development Co.Ltd(300144) unable to continue to operate.
(V) evaluate the overall presentation (including disclosure), 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 Songcheng Performance Development Co.Ltd(300144) to express audit opinions on the consolidated 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 (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.
Chinese Certified Public Accountants of Lixin certified public accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Shanghai, China April 22, 2002
2、 The unit of the statement in the financial notes to the financial statements is: yuan 1. The preparation unit of the consolidated balance sheet is Songcheng Performance Development Co.Ltd(300144)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
