Konfoong Materials International Co.Ltd(300666) audit report and financial statements for the year 2021
Konfoong Materials International Co.Ltd(300666)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-5 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 1-114
Audit report
Xin Hui Shi Bao Zi [2022] No. zf10586 Konfoong Materials International Co.Ltd(300666) all shareholders:
1、 Audit opinion
We have audited the financial statements of Konfoong Materials International Co.Ltd(300666) (hereinafter referred to as Konfoong Materials International Co.Ltd(300666) ), 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 Konfoong Materials International Co.Ltd(300666) 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 Konfoong Materials International Co.Ltd(300666) , 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. For the accounting policies of revenue recognition, please refer to “III. (XXIV) 1. Evaluated the design and implementation of Konfoong Materials International Co.Ltd(300666) revenue related internal control;
Income “. 2. Evaluate whether the recognition time point of the company’s sales revenue complies with the provisions of the accounting standards for business enterprises, obtain the customer’s signature sheet of “v. (39) operating revenue and operating cost” in the notes to the financial statements, the basis for online settlement, etc., and review whether the recognition time point of the company’s revenue is accurate;
As mentioned above, Konfoong Materials International Co.Ltd(300666) the consolidated operating revenue in 2021 is 3. Implement analytical procedures for the revenue and evaluate the rationality of sales revenue and gross profit margin;
159391265291 yuan, a year-on-year increase of 36.64%. 4. Select a sample of transactions recorded before and after the balance sheet date, and check that the delivery note, bill of lading and operating income are the main sources of profit and affect the company’s key performance indicators. The integrity, authenticity, accuracy and completeness of revenue recognition are evaluated in combination with accounts receivable letters, which have a great impact on profits. And whether it is included in the appropriate accounting period;
Therefore, we regard revenue recognition as a key audit matter. 5. Perform detailed test on the occurrence of revenue, view the sales contract, invoice, delivery and shipment records, documents and collection vouchers, analyze the balance of accounts receivable, and perform letter of confirmation and post period collection test to evaluate the authenticity of revenue recognition;
6. Obtain the bank statement, conduct two-way check between the bank flow and book records of large amount payment recovery, and confirm that the payer of sales collection is consistent with the sales customer.
(II) for the accounting policy of ending value of inventory and inventory recognition, see “III. (x) inventory” in the notes to the financial statements. 1. Evaluated the design and implementation of internal control related to Konfoong Materials International Co.Ltd(300666) inventory;
Goods “. 2. Supervise the goods stored in the factory, stored in the Taiwan free trade warehouse and stored in the main end customers at the end of the period, as described in “v. (VI) inventory” in the notes to the financial statements, Konfoong Materials International Co.Ltd(300666) cut off the delivered goods, and check the quantity and condition of the inventory; As of December 31, 2021, the book balance of inventory is 60756526342 yuan (3. Understand the inventory accounting method, obtain the production process of main products, review the amount of goods issued in the cost plan of 7167362558 yuan), the balance sheet of inventory falling price reserve, and check whether the inventory carry forward is accurate; 1889654987 yuan.
As the inventory balance is significant and the inventory falling price reserves are 4. Obtain the company’s inventory receipt, delivery and inventory, carry out valuation test, and check the accurate measurement of inventory balance valuation at the end of the period, which involves the significant judgment and estimation of the management, so we classify the inventory as periodic;
End value as a key audit matter. 5. Trace the purchase of large amount materials to relevant purchase contracts, invoices, import declaration forms and delivery notes, review the correctness of purchase costs, and spot check relevant purchase application forms, warehousing forms and other materials; Confirmed the current purchase amount to the main suppliers and the current processing fee and the balance of entrusted processing materials to the main outsourcing processors;
6. Obtain the calculation table of inventory falling price reserves, perform inventory impairment test, and analyze whether the provision of inventory falling price reserves is sufficient.
4、 Other information
Konfoong Materials International Co.Ltd(300666) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Konfoong Materials International Co.Ltd(300666) 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 Konfoong Materials International Co.Ltd(300666) ‘s ability to continue as a 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 Konfoong Materials International Co.Ltd(300666) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Whether the overall audit report contains material errors due to fraud or assurance, and whether the audit report contains material errors. 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 Konfoong Materials International Co.Ltd(300666) 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 Konfoong Materials International Co.Ltd(300666) unable to continue its business.
(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 Konfoong Materials International Co.Ltd(300666) 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.
China certified public accountant of Lixin certified public accountants: Ling Yan
(special general partnership) (project partner)
Chinese certified public accountant: Chen Sihua Chinese certified public accountant: Mei Junfeng Shanghai, China April 25, 2002
Konfoong Materials International Co.Ltd(300666)
Consolidated balance sheet
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets last year
