Funeng Oriental Equipment Technology Co.Ltd(300173)
Audit report and financial statements for the year 2 Yunnan Yuntou Ecology And Environment Technology Co.Ltd(002200) 1
catalogue
Content page
1、 Audit report 1-9
2、 Audited financial statements
1. Consolidated balance sheet 10-11
2. Balance sheet of parent company 12-13
3. Consolidated income statement 14
4. Income statement of the parent company 15
5. Consolidated cash flow statement 16
6. Cash flow statement of the parent company 17
7. Consolidated statement of changes in shareholders' equity 18-19
8. Statement of changes in shareholders' equity of the parent company 20-21
3、 Notes to financial statements 1-182
Audit report of Guangdong chenganxin certified public accountants LLP (special general partnership)
Chengxin Shen [2022] No. 0665 Funeng Oriental Equipment Technology Co.Ltd(300173) all shareholders:
1、 Audit opinion
We have audited the financial statements of Funeng Oriental Equipment Technology Co.Ltd(300173) (hereinafter referred to as Funeng Oriental Equipment Technology Co.Ltd(300173) 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 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 parent company's financial position of Funeng Oriental Equipment Technology Co.Ltd(300173) company as of December 31, 2021 and the consolidated and parent company's operating results and cash flow 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 Funeng Oriental Equipment Technology Co.Ltd(300173) 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.
We confirm that the following matters are the key audit matters that need to be communicated in the audit report:
(I) revenue recognition
1. In 2021, the consolidated operating income of Funeng Oriental Equipment Technology Co.Ltd(300173) company was 116442600 yuan, and there may be potential misstatement in the authenticity and cut-off of the operating income of Funeng Oriental Equipment Technology Co.Ltd(300173) company. Therefore, we determine the recognition of revenue as a key audit matter. For the disclosure of income categories, see note III (27) and note V (42).
2. Our audit procedures for this key audit matter mainly include:
(1) Understand and evaluate the design of internal control in the sales process of Funeng Oriental Equipment Technology Co.Ltd(300173) company from the approval of sales orders to the entry of operating revenue, and test the effectiveness of the implementation of relevant key internal control.
(2) Sample sales contracts and interview with management, analyze the time point of commodity control transfer, and evaluate the rationality of revenue recognition accounting policies of Funeng Oriental Equipment Technology Co.Ltd(300173) company.
(3) Carry out analytical review procedures for operating income and gross profit to judge the rationality of changes in operating income and gross profit margin in the current period.
(4) Check whether the customer is associated with Funeng Oriental Equipment Technology Co.Ltd(300173) company through the information of Hithink Royalflush Information Network Co.Ltd(300033) , enterprise check, Tianyan check and other public websites.
(5) The following procedures shall be implemented for the operating income by sampling:
① Select samples to check the original documents confirming the operating revenue and verify the authenticity of the operating revenue. At the same time, select some original documents to check with the book records to verify the integrity of operating income. ② To verify the authenticity of Funeng Oriental Equipment Technology Co.Ltd(300173) company's operating revenue, we will send letters to major customers and make on-site visits to customers with large sales volume and visit their business premises.
③ Perform a cut-off test on operating income to assess whether operating income has been included in the appropriate accounting period.
(II) impairment of accounts receivable
1. As of December 31, 2021, the book balance of accounts receivable of Funeng Oriental Equipment Technology Co.Ltd(300173) company is
5072098 million yuan, 1027822 million yuan of bad debt provision and 4044276 million yuan of book value. (VI) see "accounting policies and accounting methods for impairment of accounts receivable" in "notes to financial statements" (V) for details of accounting policies and accounting treatment methods for impairment of accounts receivable ".
According to the credit risk characteristics of various accounts receivable, the management measures its loss reserves according to the expected credit loss amount equivalent to the whole duration based on individual accounts receivable or combination of accounts receivable. For accounts receivable whose expected credit loss is measured on a single basis, the management comprehensively considers the reasonable and reliable information about past events, current situation and future economic situation forecast, estimates the expected cash flow received, and determines the bad debt provision to be withdrawn accordingly; For the accounts receivable whose expected credit loss is measured on the basis of portfolio, the management divides the portfolio based on the aging, refers to the historical credit loss experience, and adjusts it according to the forward-looking estimation, and prepares the comparison table between the aging of accounts receivable and the expected credit loss rate, so as to determine the accrued bad debt reserves.
As the amount of accounts receivable is significant and the impairment test of accounts receivable involves significant management judgment, we determine the impairment of accounts receivable as a key audit event.
2. Our main audit procedures include:
(1) Understand the key internal controls related to the impairment of accounts receivable, evaluate the design of these controls, determine whether they have been implemented, and test the operation effectiveness of relevant internal controls;
(2) Review the subsequent actual write off or reversal of accounts receivable for which bad debt reserves have been accrued in previous years, and evaluate the accuracy of previous forecasts of the management;
(3) Review the relevant considerations and objective evidence of the management's credit risk assessment of accounts receivable, and evaluate whether the management has properly identified the credit risk characteristics of various accounts receivable;
(4) For accounts receivable that measure the expected credit loss on a single basis, obtain and check the management's prediction of the expected cash flow received, evaluate the rationality of the key assumptions used in the prediction and the accuracy of the data, and check with the obtained external evidence;
(5) For accounts receivable whose expected credit loss is measured on the basis of portfolio, evaluate the rationality of the management's division of portfolio according to the characteristics of credit risk; Evaluate the rationality of the comparison table between the aging of accounts receivable and the expected credit loss rate determined by the management based on historical credit loss experience and forward-looking estimation; Test the accuracy and completeness of the data used by the management (including accounts receivable aging, historical loss rate, migration rate, etc.) and whether the calculation of bad debt reserves is accurate;
(6) Check the post period collection of accounts receivable and evaluate the rationality of the management's provision for bad debts of accounts receivable;
(7) Check whether the information related to the impairment of accounts receivable has been properly presented in the financial statements.
(III) goodwill impairment
1. As of December 31, 2021, the book balance of goodwill in the consolidated balance sheet of Funeng Oriental Equipment Technology Co.Ltd(300173) company was 11219419 million yuan, and the provision for impairment of goodwill was 7221039 million yuan. Including: (1) the book balance of goodwill formed by the acquisition of Shenzhen Daewoo precision carving technology Co., Ltd. (hereinafter referred to as Shenzhen Daewoo) is 7293481 million yuan, and the provision for impairment of goodwill is 717688 million yuan; (2) The book balance of goodwill formed by the acquisition of Shenzhen Yinhao automation equipment Co., Ltd. (hereinafter referred to as Shenzhen Yinhao) is 8.1174 million yuan, and the provision for goodwill impairment is 4.4159 million yuan; (3) The book balance of goodwill formed by the acquisition of Dongguan chaoye precision equipment Co., Ltd. (hereinafter referred to as Dongguan chaoye) was 384476500 yuan, and there was no impairment of goodwill. According to the accounting standards for business enterprises, the goodwill formed by business combination shall be tested for impairment at least at the end of each year. The impairment test requires to estimate the recoverable amount of the relevant asset group including goodwill, that is, the higher of the net amount of the fair value of the relevant asset group minus the disposal expenses and the present value of the estimated future cash flow of the relevant asset group. When determining the present value of the estimated future cash flow of the relevant asset group, the management needs to properly predict the long-term average growth rate of the future cash flow of the relevant asset group and reasonably determine the discount rate used to calculate the present value of the estimated future cash flow of the relevant asset group, which involves the management using major accounting estimates and judgments, and considering the importance of goodwill to the overall financial statements, Therefore, we regard goodwill impairment as a key audit matter. See note V (XIX) to the financial statements for relevant information disclosure.
2. Our audit procedures for this key audit matter mainly include:
(1) Analyze the management's judgment on whether the asset group including goodwill may be impaired at the end of the year, and check whether the key assumptions such as the revenue growth rate predicted by the management when evaluating the recoverable amount of the asset group are reasonable compared with the company's budget and the company's long-term strategic development plan, and whether they are reasonable compared with the industry development and economic environment.
(2) Involving the use of experts by the management, we use our valuation experts to evaluate the competence, professional ability and objectivity of the external valuation experts appointed by the management, and review the evaluation results of their management experts.
(3) Check whether the disclosure of goodwill impairment assessment in the financial notes meets the requirements of the accounting standards for business enterprises.
(IV) inventory accounting matters
1. As of December 31, 2021, Funeng Oriental Equipment Technology Co.Ltd(300173) company has 1947633 million yuan of inventory book balance, 994735 million yuan of inventory falling price reserves and 18481595 million yuan of inventory book value in the consolidated balance sheet. The book values of special equipment automation production line, lithium battery equipment and precision functional structural parts are 99.809 million yuan, 1720725 million yuan and 276255 million yuan respectively. Inventory accounts for 38.48% of the total assets, and some inventories have a long age, which may have impairment risk. Therefore, we believe that this matter is a key audit matter. See note III (XII) and note V (VIII) of the financial statements for relevant information disclosure.
2. Our audit procedures for this key audit matter mainly include:
(1) Obtain the inventory management system of Funeng Oriental Equipment Technology Co.Ltd(300173) company, understand its inventory storage management, and test and evaluate the effectiveness of relevant internal control design and operation.
(2) Combined with the distribution of the company's inventory, select the inventory in the warehouse to implement the inventory supervision procedure, so as to understand the quantity and status of the inventory at the end of the period.
(3) Understand the policies and methods of inventory falling price reserves and evaluate their rationality. Obtain the calculation table of inventory falling price reserves, and verify the accuracy of inventory falling price reserves through recalculation.
(4) Involving the use of experts by the management, we use our valuation experts to evaluate the competence, professional ability and objectivity of the external valuation experts appointed by the management, and review the evaluation results of their management experts.
(5) Obtain and check the inventory age details of Funeng Oriental Equipment Technology Co.Ltd(300173) company, and analyze whether the inventory falling price reserves are reasonable according to the sales of similar products and the age of various inventories.
(6) Review the accounting treatment of inventory and inventory falling price reserves, as well as the presentation in the financial report.
4、 Other information
The management of Funeng Oriental Equipment Technology Co.Ltd(300173) company is responsible for other information. Other information includes the information covered in the 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
Funeng Oriental Equipment Technology Co.Ltd(300173) 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 sustainable operation ability of Funeng Oriental Equipment Technology Co.Ltd(300173) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, 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 Funeng Oriental Equipment Technology Co.Ltd(300173) 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 accordance with the auditing standards
