Suya Jincheng Certified Public Accountants (puttong Heshu partnership) Suya zhuanshen [2022] No. 115
Special note on Issuing unqualified audit report with highlights for Suzhou Chunxing Precision Mechanical Co.Ltd(002547) 2021 annual financial statements Suzhou Chunxing Precision Mechanical Co.Ltd(002547) all shareholders:
We have audited the consolidated balance sheet and balance sheet of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (hereinafter referred to as Suzhou Chunxing Precision Mechanical Co.Ltd(002547) ) 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, On April 24, 2022, the company issued an unqualified opinion audit report with highlighted items in suashen [2022] No. 724.
In accordance with the relevant requirements of the rules for the preparation and reporting of information disclosure of companies offering securities to the public No. 14 - handling of non-standard audit opinions and matters involved, the guidelines for the application of regulatory rules - Audit No. 1 and the stock listing rules of Shenzhen Stock Exchange, the relevant matters are explained as follows:
1、 Highlight the main contents involved in the matter paragraph
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.
2、 Treatment of matters covered in the previous paragraph
On April 28, 2021, ZTE caiguanghua Certified Public Accountants (special general partnership) issued an unqualified audit report with highlights on the financial statements of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) 2020 (ZTE caiguanghua Hui Zi (2021) No. 304291). The treatment of highlights in this period is as follows:
(I) litigation with Huizhou Anton Hardware Plastic Electronics Co., Ltd
As mentioned in note XIII. 4 (2) of the financial report, Huizhou Anton Hardware Plastic Electronics Co., Ltd. (hereinafter referred to as Huizhou Anton) filed a lawsuit with Huizhou intermediate people's Court on July 28, 2020, requesting the court to order Suzhou Chunxing Precision Mechanical Co.Ltd(002547) and its subsidiary Huizhou Suzhou Chunxing Precision Mechanical Co.Ltd(002547) Co., Ltd. (hereinafter referred to as Huizhou Chunxing) to return the real estate located in Yugui lake, group 9, GONGTING village, Longxi Town, BOLUO county, And pay the occupation fee of relevant real estate from April 19, 2016.
In December 2021, Suzhou Chunxing Precision Mechanical Co.Ltd(002547) received the civil judgment ((2020) Yue 13 min Chu No. 315) from Huizhou intermediate people's Court of Guangdong Province, which ruled that Suzhou Chunxing Precision Mechanical Co.Ltd(002547) and Huizhou Chunxing should return the land (except the open space without buildings on the west side of phase II plant) and aboveground buildings to Huizhou Anton within 30 days from the date of legal effect of the judgment; And pay the land and aboveground building occupation and use fee from October 1, 2016 to the date of actual removal to Huizhou Anton within 10 days from the date of legal effect of the judgment.
According to the above judgment, as of December 31, 2021, Suzhou Chunxing Precision Mechanical Co.Ltd(002547) accumulated real estate occupation fee of 604869 million yuan, scrapped houses and buildings in Chunxing, Huizhou 985751 million yuan, scrapped long-term deferred expenses and decoration expenses of 1.0907 million yuan.
(II) matters concerning China Securities Co.Ltd(601066) arbitration
As mentioned in note 13.4 (3) of the financial report, on April 8, 2021, the people's Government of Xianyou County organized a special meeting to study and discuss the application to Fujian strait bank for reduction of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) , liquidated damages and fruits of Xianyou Xiancai state owned assets investment and Operation Co., Ltd. (hereinafter referred to as Xiancai Guotou) and Xianyou Derun Investment Co., Ltd, Form the minutes of the special meeting on coordinating the reduction and exemption of liquidated damages and fruits of Fujian strait bank. According to the special meeting minutes, after Suzhou Chunxing Precision Mechanical Co.Ltd(002547) pays 500000 yuan of liquidated damages, the rest of the liquidated damages shall be exempted by Fujian strait bank.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) held the 34th interim meeting of the Fourth Board of directors on May 8, 2021 and the 2020 annual general meeting of shareholders on May 21, 2021, and approved the company to sign the supplementary agreement on investment of yuanshengzhihui industrial project and other relevant agreements with all parties on solving the debt problem of (2020) rongzhongpuce No. 5 award, Since Xiancai Guotou is jointly and severally liable for the debts involved in the above arbitration, the company entrusts Xiancai Guotou to implement the arbitration decision first, and Xiancai Guotou and China Securities Co.Ltd(601066) sign the settlement agreement.
As of May 21, 2021, xcgti has paid a total of 255669900 yuan of transfer money, fruits and liquidated damages to China Securities Co.Ltd(601066) in accordance with the requirements of the award [(2020) rongzhongpuzheng No. 5] and the settlement agreement. The repayment obligations agreed in the above award have been fulfilled.
3、 Reasons and basis for issuing an unqualified opinion with emphasis paragraph
According to Article 9 of the auditing standards for Chinese certified public accountants No. 1503 - adding emphasis and other matters to the audit report, if it is considered necessary to remind the users of the financial statements to pay attention to the matters that have been reported or disclosed in the financial statements and that are considered to be important for the users of the financial statements to understand the financial statements according to professional judgment, when the following conditions are met at the same time, A certified public accountant shall add an emphasis paragraph to the audit report: (1) in accordance with the provisions of the auditing standards for Chinese certified public accountants No. 1502 - issuing a non unqualified opinion in the audit report, this matter will not cause the certified public accountant to issue a non unqualified opinion; （2） When the auditing standards for Chinese certified public accountants No. 1504 - Communication of key audit matters in the audit report is applicable, the matter is not identified as the key audit matter communicated in the audit report.
In the first (I) "examples of situations where it is necessary to add an emphasis paragraph" of the application guide of China Auditing Standards for certified public accountants No. 1503 - adding an emphasis paragraph and other matters paragraph to the audit report, it is clear that the certified public accountant may think it is necessary to add an emphasis paragraph: including matters such as the uncertainty of the future results of abnormal litigation or regulatory actions.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) has disclosed relevant matters in the notes to the financial statements. In view of the fact that the relevant matters will not lead to the unqualified opinion of the certified public accountant and are not identified as the key audit matters communicated in the audit report, but we believe that it is very important for the users of the financial statements to understand the financial statements according to our professional judgment, we have added an emphasis on matters paragraph in the audit report to remind the users of the financial statements to pay attention to these matters disclosed in the financial statements.
4、 Overall importance level of consolidated financial statements
The overall importance of the 2021 consolidated financial statements used in our audit is as follows:
Selected benchmark: operating income; The operating income of the company fluctuates greatly in recent three years, so it is selected as the benchmark;
Percentage used: 1.00% of operating revenue;
Selection basis: the profit of the company fluctuates greatly in recent three years, and 1.00% of operating revenue is selected as the benchmark;
Overall importance of financial statements: 26.733 million yuan.
5、 Impact of matters involved in non-standard audit opinions on financial status and operating results during the reporting period
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) the matters involved in this year's non-standard audit opinion are emphasized matters, which have been disclosed by Suzhou Chunxing Precision Mechanical Co.Ltd(002547) in the notes to the 2021 financial statements. Adding the emphasized matters section will help the users of the financial report better understand the financial report.
6、 Whether the matters involved in the unqualified audit opinion with emphasis on matters are in obvious violation of accounting standards, systems and relevant information disclosure norms
As of the date of issuance of this special note, we have not found any obvious violation of the accounting standards system and relevant information disclosure norms on the matters involved in the unqualified audit opinion with emphasis.
This special instruction is only for the purpose of disclosure of Suzhou Chunxing Precision Mechanical Co.Ltd(002547) 2021 annual report, and shall not be used for other purposes without the written consent of our firm.
Suya Jincheng certified public accountants, Chinese Certified Public Accountants:
(special general partnership)
Chinese certified public accountant:
Nanjing, China April 24, 2002
