Ningbo Color Master Batch Co.Ltd(301019) audit report and financial statements for the year 2021
Ningbo Color Master Batch Co.Ltd(301019)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-4 II. Financial statements
Balance sheet 1-2 income statement 3 cash flow statement 4 statement of changes in owner’s equity 5-6 notes to financial statements 1-74
Audit report
Xin Hui Shi Bao Zi [2022] No. zf10473 Ningbo Color Master Batch Co.Ltd(301019) all shareholders:
1、 Audit opinion
We have audited the financial statements of Ningbo Color Master Batch Co.Ltd(301019) (hereinafter referred to as Ningbo Color Master Batch Co.Ltd(301019) ), including the balance sheet as of December 31, 2021, the income statement, cash flow statement, 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 financial position of Ningbo Color Master Batch Co.Ltd(301019) December 31, 2021 and the operating results and cash flows of 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 Ningbo Color Master Batch Co.Ltd(301019) , 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. We shall not express an opinion on these matters based on the overall audit of the financial statements.
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 Ningbo Color Master Batch Co.Ltd(301019) is mainly engaged in the R & D and production of color masterbatch. The main audit procedures we perform for the revenue recognition of Ningbo Color Master Batch Co.Ltd(301019) sales products include: production and sales business, main business revenue in 2021 (1) understand and test the internal control system related to sales and collection, and the revenue is 487394700 yuan, because the revenue is the design and implementation of Ningbo accounting system; As one of the key performance indicators of Color Masterbatch, there are two problems: (2) select samples to check the sales contract, conduct “five step” Analysis on the contract, judge the time point when the management manipulates the composition of performance obligations and the transfer of control in order to achieve specific goals or expectations, and then evaluate the inherent risk of the company’s sales revenue at the time point of revenue recognition. We will determine whether the Ningbo recognition policy meets the requirements of the new revenue standard; The revenue recognition of color masterbatch is identified as a key audit matter. (3) Implement analytical procedures, including analyzing whether the structure of product sales and price changes are abnormal; Calculate the gross profit margin of main products in the current period, compare the same period of last year, and check whether there are abnormalities and major fluctuations;
(4) Perform detail test, check invoice, sales contract, delivery order, receipt and other relevant customer signing documents, and verify the authenticity of sales revenue;
(5) Combined with the audit of accounts receivable, select the sales volume of letters from major customers, check the collection of accounts receivable after the period, and check with the bank flow;
(6) Select major customers to check the authenticity of the transaction, evaluate the payment ability of customers, query the industrial and commercial registration data of customers, and check whether there is a related party relationship between customers and Ningbo Color Master Batch Co.Ltd(301019) grain;
(7) A sampling test is conducted on the sales revenue recognized before and after the balance sheet date to evaluate whether the sales revenue is recognized in an appropriate period.
4、 Other information
Ningbo Color Master Batch Co.Ltd(301019) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information contained in the annual report of Ningbo Color Master Batch Co.Ltd(301019) 2021, 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 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, whether due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating Ningbo Color Master Batch Co.Ltd(301019) the ability of going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, 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 Ningbo Color Master Batch Co.Ltd(301019) .
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 Ningbo Color Master Batch Co.Ltd(301019) going concern 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 Ningbo Color Master Batch Co.Ltd(301019) 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.
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 accountant of Lixin certified public accountants: Chen Xiaojin (special general partnership) (project partner)
Chinese certified public accountant: Li Dan
Shanghai, China April 22, 2002
Ningbo Color Master Batch Co.Ltd(301019)
Balance sheet
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets closing balance of last year
Current assets:
Monetary capital (I) 548 Haima Automobile Co.Ltd(000572) 919415735387
Trading financial assets (II) 20000000000
Derivative financial assets
Notes receivable (III) 233030910518657293
Accounts receivable (IV) 98942961399057555089
Receivables financing (V) 50785557846470486288
Prepayment (VI) 8747997321366946786
Other receivables (VII) 2973982441143555
Inventory (Ⅷ) 67136729929681615314
Contract assets
Assets held for sale
Non current assets due within one year
Other current assets (IX) 140281417
Total current assets
