Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) audit report and financial statements for the year 2021
Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-6 II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner’s equity and parent company statement of changes in owner’s equity 9-12 notes to financial statements 1-92
audit report
Xin Hui Shi Bao Zi [2022] No. za11216 Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) (hereinafter referred to as Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) ), 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 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 the consolidated and parent company as of December 31, 2021 and the operating results and cash flow of the consolidated and 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) , 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) the revenue recognition of architectural design business is detailed in note III (XXV) accounting and evaluation of revenue recognition. The audit procedures related to revenue recognition include: policy summary and note V (xxx) relevant revenue disclosure information. 1. Understand and test the policies, procedures, methods and relevant internal control of the signing and change of architectural design contract and the operating income of Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) consolidated financial statements in 2021;
341231500 yuan. 2. For the key internal control operation related to the company’s revenue recognition, the revenue in the reporting period mainly comes from architectural design, and the effectiveness of design performance schedule is evaluated and tested; Based on the external written documents such as the client’s confirmation letter, when the company 3. Selects the samples of architectural design projects for detail test, checks the work requirements of the industry at each stage, and its work results are confirmed and confirmed by the client corresponding to the key terms of the business contract and the completion progress, and the right to obtain the consideration is likely to be recovered, the confirmation letter shall be issued in stages to verify whether the completion progress of the project is correct; Income. Because the company may confirm the design in advance or later because of the customer. 4. The project name, project progress and cumulative results on the balance sheet date, so that the architectural design income is not confirmed, invoiced and received within the appropriate period; Therefore, we determine the revenue recognition of architectural design business. 5. The deadline for the revenue recognition before and after the balance sheet date is regarded as the key audit matter. Try.
(II) see note III (x) of the financial statements for details of bad debt reserves of accounts receivable. The audit procedures related to the impairment of accounts receivable include: summary of accounting policies and relevant disclosure materials in note V (IV). 1. Test the management’s key internal control related to the daily management and recoverability evaluation of accounts receivable and the estimation of accounts receivable in the company’s consolidated financial statements on December 31, 2021;
The original value was 462816 million yuan and the bad debt provision was 521399 million yuan. 2. Review the relevant examination of the impairment test of the management on the accounts receivable. The management evaluates whether the management properly identifies the accounts receivable or the combination of accounts receivable based on the credit risk characteristics of all accounts receivable and individual considerations and objective evidence, according to the credit risk characteristics equivalent to the whole accounts receivable; The amount of expected credit loss during the duration shall be used to measure the loss reserve. 3. For the accounts receivable that measure the expected credit loss on a single basis and the accounts receivable that measure the expected credit loss on a single basis, manage the funds, review the management’s management of the expected future cash flow, and comprehensively consider the basis and rationality of relevant past events, current conditions and future estimates; Estimate the expected collection based on the reasonable and reliable information predicted by the economic situation. 4. For the cash flow of accounts receivable that measures the expected credit loss on the basis of portfolio, determine the bad debt provision that should be withdrawn accordingly; For the accounts receivable that measure the expected credit loss based on the reasonable combination of the combination divided by the management according to the characteristics of credit risk, the management is satisfied; According to the historical credit portfolio with similar credit risk characteristics, the portfolio is divided based on the aging. Referring to the historical credit loss experience, the loss experience and the prediction of future economic conditions, the management is evaluated to prepare the comparison table between the aging and expected credit loss rate of accounts receivable and the comparison table between the aging and expected credit loss rate of accounts receivable in combination with the current situation and the prediction of future economic conditions, so as to determine the rationality of accounts receivable; Test the data used by the management (including bad debt reserves withdrawn from accounts receivable).
As the amount of accounts receivable is significant, the accuracy and completeness of receivable age, migration rate, etc.) and the impairment of accounts receivable involve significant management judgment, we will determine whether the calculation of accounts receivable minus bad debt provision is accurate;
Value is determined as key audit matters. 5. Check the post period collection of accounts receivable and evaluate the rationality of the management’s provision for bad debts of accounts receivable.
(III) for the recognition and measurement of goodwill, see note V (XIV) and note VI (I) of the financial statements. The audit procedures related to the recognition and measurement of goodwill include
Relevant disclosure information. 1. We evaluated and tested Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) related to business merger
2021 Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) the effectiveness of the design and implementation of internal control system through business combination not under the same control; Merged Shanghai Lixiang architectural design firm (general partnership) / Shanghai 2. Recheck the process and results of Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) determining Lixiang / hope planning and qianxu Yu’s purchase of rihope architectural planning and Design Co., Ltd. (hereinafter referred to as “Lixiang / hope planning fair value of identifiable net assets”) and Shanghai qianxu Engineering Project Management Co., Ltd. (hereinafter referred to as “qianxu”;
The merger increased the goodwill of the company respectively. 3. Evaluate the competence of the external valuation experts hired by Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) company
4315007635 yuan and 1055106593 yuan. And independence;
The accuracy of the recognition, measurement and presentation of goodwill has an important impact on the financial statements. 4. Discuss with Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) management and valuation experts to meet the identifiable important impact. Therefore, we recognize the recognition and measurement of goodwill as the scope, classification and valuation technology of intangible assets to evaluate intangible assets
Key audit matters. Whether the asset recognition is complete and whether the fair value valuation is reasonable.
(IV) see note V (XIV) and note VI (I) of the financial statements for details of goodwill impairment test. The audit procedures related to goodwill impairment test include:
Relevant disclosure information. 1. We evaluated and tested Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) and asset impairment test
The effectiveness of the design and implementation of the internal control system related to the amount of goodwill in Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) consolidated financial statements in 2021;
5370114228 yuan. 2. Evaluate the competence and independence of the valuation experts Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) hired
The management needs to conduct impairment test on goodwill every year and based on the testability of impairment;
Adjust the book value of goodwill according to the trial results. 3. Discuss goodwill impairment measurement with Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) management and valuation experts
The results of goodwill impairment test largely depend on the methods tried by the management, including the identification of asset groups related to goodwill
The estimates made and assumptions adopted, such as the key assumptions and methods used in the current goodwill impairment test of the asset group in the future; Estimation of cash flow and discount rate. These estimates are affected by the basic data on which the management has not 4. Reviewed the impairment test of the management, including the market and the judgment of the economic environment. The calculation and assumption of using the assumptions such as the future predicted income and cash flow discount rate of different asset groups will have a significant impact on the recoverable amount of goodwill. Due to the judgment and estimation of rationality and the profitability of the asset group;
Therefore, we recognize the goodwill impairment test as a key audit event. 5. Review the recognition and measurement of goodwill impairment reserves determined by the management
And the accuracy of presentation.
4、 Other information
Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) 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 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 assessing Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) ‘s ability to continue as a going concern, disclosing matters related to going concern and applying the assumption of going concern, unless it plans to liquidate, terminate operations or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) .
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 Shanghai Hyp-Arch Architectural Design Consultant Co.Ltd(301024) going concern ability. as
