Jiangxi Haiyuan composite material technology Co., Ltd
Audit report
Xikuaishan Zi (2022) No. 0881
catalogue
1、 Audit report (1-5) II. Financial statements
(I) consolidated financial statements
1. Consolidated balance sheet （6-7）
2. Consolidated income statement （8）
3. Consolidated cash flow statement （9）
4. Consolidated statement of changes in shareholders' equity （10-11）
(II) financial statements of the parent company
1. Balance sheet of parent company （12-13）
2. Income statement of the parent company （14）
3. Cash flow statement of the parent company （15）
4. Statement of changes in shareholders' equity of the parent company （16-17）
3、 Notes to the financial statements (18-109) IV. copy of certificate
(I) certified public accountant qualification certificate
(II) business license of accounting firm
(III) practice certificate of accounting firm
Xigma CPA (special general partnership)
Xikuaishan Zi (2022) No. 0881
Audit report
All shareholders of Jiangxi Haiyuan composite material technology Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Jiangxi Haiyuan composite material technology Co., Ltd. (hereinafter referred to as your company), 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 shareholders' 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 your company as of December 31, 2021 and the operating results and cash flows of your company and the 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 your 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、 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.
Main business income
(I) item description
As stated in "v. (36) operating revenue and operating costs" in the notes to the financial statements, the company recognized the main business revenue of 23076812418 yuan in 2021. Your company's main business revenue includes the sales revenue of press equipment and accessories, building formwork and accessories, auto parts and Cecep Solar Energy Co.Ltd(000591) photovoltaic modules.
As one of the important performance indicators of your company, there may be inherent risks for your company's management (hereinafter referred to as the management) to achieve specific goals or expectations through inappropriate revenue recognition. Therefore, we identified revenue recognition as a key audit matter.
(II) audit response
1. Understand the key internal controls related to revenue recognition, evaluate the design of these controls, determine whether they are effective and implemented, and test the effectiveness of the operation of relevant internal controls;
2. Understand and evaluate whether the selection and implementation of policies related to revenue recognition by the management meet the requirements of accounting standards for business enterprises;
3. Check the sales contract, identify the contract performance obligations and terms related to the transfer of commodity control, discuss the essence of the transaction, the recognition time and method of revenue with the management, and evaluate whether the revenue recognition method is appropriate;
4. Implement analysis procedures for operating income and gross profit margin by year, product, etc., identify whether there are significant or abnormal fluctuations, and find out the causes of fluctuations;
5. For domestic sales revenue, check the supporting documents related to revenue recognition by sampling, including sales contract, order, sales invoice, delivery order, customer signing record and bank receipt; For export income, obtain the customs declaration and shipping records and check them with the book, and check the sales contract, export declaration, bank foreign exchange settlement statement, sales proforma invoice and other supporting documents by sampling;
6. Combined with the letter of accounts receivable, confirm the current sales volume and the ending balance of current accounts to the main customers by sampling;
7. Check the collection after the period;
8. Conduct a cut-off test on the operating income recognized before and after the balance sheet date to check whether the operating income is recognized in an appropriate period;
9. Check whether the information related to operating income has been properly presented and disclosed in the financial statements. 4、 Other information
The management of your company is responsible for other information. Other information includes the information covered in your 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.
In preparing the financial statements, the management is responsible for assessing the company's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate the company, terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of your company.
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 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 the sustainable operation ability of your company. 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 your company to be unable to continue its business.
(V) evaluate the overall presentation, 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 your company to express audit opinions on the 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 most important for the audit of the consolidated financial statements of the current period, 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.
Sigmar Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner)
Chinese certified public accountant in Xi'an, China:
April 25, 2022
Consolidated balance sheet
Huihe form 01 prepared by: Jiangxi Haiyuan Composite Technology Co., Ltd
December 31, 2021 monetary unit: RMB yuan Co., Ltd
Closing balance of project notes closing balance of last year
Current assets:
Monetary capital V (I) 25334076269969902543
Trading financial assets
Derivative financial assets
Notes receivable V (II) 45055443754058233340
Accounts receivable V (III) 1033175751810216845469
Receivables financing V (IV) 48376956723393427
Prepayment V (V) 25208409612243790669
Other receivables V (VI) 497756127211972664416
Inventory V (VII) 1983726334222782676630
Contract assets
Assets held for sale
Non current assets due within one year
Other current assets V (VIII) 5127144301404835206
Total current assets 4570285909162672341700
Non current assets:
Debt investment
Other debt investment
Long term receivables V (IX) 250096000
Long term equity investment V (x) 6542938981462079456
Investment in other equity instruments
Other non current financial assets V (XI) 583643439888006980
Investment real estate
Fixed assets V (XII) 4056151916443462466294
Construction in progress V (XIII) 64104
