Suya Jincheng Certified Public Accountants (pute Tong Heshu partnership) Suya Shen [2022] No. 724
Audit report
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) all shareholders:
1、 Audit opinion
We have audited the financial statements of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (hereinafter referred to as Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company), including the consolidated balance sheet and balance sheet as of December 31, 2021, the consolidated income statement and income statement, consolidated cash flow statement and cash flow statement, consolidated statement of changes in owner's equity and 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 Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company as of December 31, 2021 and the operating results and cash flow 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 Suzhou Chunxing Precision Mechanical Co.Ltd(002547) 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、 Highlight matters
We remind users of the financial statements that, as stated in note 13 (1) to the financial statements, in 2018, the company indirectly sold calient technologies by transferring 100% equity of Huizhou Zehong Technology Co., Ltd. (hereinafter referred to as Huizhou Zehong) and 100% equity of its wholly-owned subsidiary Chunxing Holdings (USA) Ltd, 25.5% equity of Inc. (hereinafter referred to as calient) is transferred to Suzhou Industrial Park kahnliant Technology Co., Ltd. (hereinafter referred to as kahnliant), and the equity transfer prices are 120 million yuan and 329.65 million yuan respectively. Mr. Sun Jiexiao, the controlling shareholder and actual controller of the listed company, is the actual controller of the transferee Kahn Liante and provides joint and several guarantee liabilities for the above transactions.
After deliberation at the sixth extraordinary meeting of the Fifth Board of directors and the fifth extraordinary general meeting of shareholders in 2021, the payment period of the above equity transfer fee and interest is extended to one year after the expiration of the original payment period. Mr. Sun Jiexiao plans to use his disposable assets to offset the principal of the remaining unpaid equity transfer and the corresponding interest continuously generated up to the date of principal repayment. As of the issuance date of this report, the specific debt settlement plan is still in progress.
As of December 31, 2021, the company has received the equity transfer payment of 55 million yuan from Kahn Liante, the remaining 394.65 million yuan of equity transfer principal and corresponding interest have not been paid, and the company has accrued the bad debt provision of 197325 million yuan.
The contents of this paragraph shall not affect the issued audit opinion.
4、 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. 1. For revenue recognition, please refer to the accounting policies described in note 25 of "important accounting policies and accounting estimates" in note 3 of the financial statements and note 44 of "notes to main items of consolidated financial statements" in note 5.
Key audit matters how to deal with them in the audit
The audit procedures related to revenue recognition mainly include:
Understand and evaluate the internal control system related to sales and collection. In 2021, the effectiveness of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company's operating revenue design and test the effectiveness of key control operation of 26732953 million yuan, because revenue is the key.
One of the performance indicators, the management may be
In order to achieve specific or expected performance indicators, falsely select the sales contract for inspection, identify the inherent performance obligations of each organization's revenue contained in the contract or manipulate the revenue recognition time point, and confirm and evaluate the performance risk of the performance obligations. Therefore, we regard the recognition point of revenue and evaluate whether the sales revenue recognition policy is in line with enterprise accounting as the key audit matters. Provisions of the code.
Combined with the product type, analyze the income, cost, whether they are matched and the fluctuation of gross profit, and judge the sales income and gross profit
Rationality of profit and loss changes.
Select transaction samples and check the supporting documents related to revenue recognition. For domestic sales revenue, check sales related contracts or orders, sales invoices, product transportation documents, customer receipt documents and other materials; For export revenue, check the sales related contracts or orders, customs declaration, bill of lading, logistics records and other materials according to different international trade settlement terms; Evaluate the authenticity of sales revenue recognition.
In combination with monetary capital audit, check the collection records of large amounts of goods, check whether the collection unit is consistent with the records of sales customers, and check the authenticity and accuracy of sales revenue in combination with the procedures of accounts receivable correspondence.
Understand the cooperation mode between the company and customers, query the industrial and commercial registration information such as the ownership structure and main business scope of main customers through open channels, analyze whether their business and scale match the company's transactions, and whether the business has reasonable business reasons, Whether there is a potential relationship with the company.
Select a sample to check the transaction records before and after the balance sheet date, check the supporting documents related to revenue recognition, and evaluate whether the revenue recognition is recorded in the appropriate accounting period.
2. For the provision for bad debts of accounts receivable, please refer to the accounting policies described in note 9 of "important accounting policies and accounting estimates" in note 3 of the financial statements and note 5 of "notes to main items of consolidated financial statements" in note 5.
Key audit matters how to deal with them in the audit
The audit procedures related to the provision for bad debts of accounts receivable mainly include as of December 31, 2021, Suzhou Chunxing Precision Mechanical Co.Ltd(002547) including:
The balance of accounts receivable of the company is 1284959500 yuan. Understand and evaluate the internal yuan related to the withdrawal of bad debt reserves of accounts receivable, and the balance of bad debt reserves is 375048900 yuan. The Department controls the effectiveness of the design and tests the effectiveness of the provision for bad debts of accounts receivable due to the key control operation.
The subjective judgment of the management has inherent uncertainty. Therefore, we recognize the bad debt of accounts receivable, understand the bad debt accrual policy of accounts receivable, calculate and analyze the accrual of accounts receivable reserves as key audit matters. The ratio of bad debt provision for accounts receivable to the balance of accounts receivable, considering the situation of business, industry and customers, and combined with the actual accounts receivable of previous years
The amount and situation of bad debts of accounts receivable, and analyze whether there are major abnormalities in the aging, turnover rate and other indicators of accounts receivable.
Analyze the rationality of the accounting estimation of bad debt provision for accounts receivable, measure the accounts receivable with expected credit loss on a single basis, and obtain and review the management's advance payment for the expected cash flow
Measure and evaluate the rationality of the key assumptions used in the prediction and the accuracy of the data; For accounts receivable that measure expected credit loss based on portfolio, evaluate the rationality of the management's division of portfolio according to credit risk characteristics, and evaluate the expected credit loss determined by the management based on historical credit loss experience and forward-looking estimation
Rationality of loss rate; Obtain samples of major sales contracts, understand the business model and customer credit policies, and review the accuracy of overdue aging of accounts receivable.
Implement the letter confirmation procedure for the ending balance of accounts receivable of major customers, check the collection after the period, and evaluate the authenticity of accounts receivable and the rationality of bad debt provision.
Recheck the accuracy of the amount of bad debt provision by performing recalculation and other procedures.
5、 Other information
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) the management of the company (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company, 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.
6、 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 evaluating the going concern ability of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company, disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) company.
7、 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
