audit report
Shenzhen Increase Technology Co.Ltd(300713)
Rong Cheng Shen Zi [2022] No. 518z0239
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 audit report 1-6
2 consolidated balance sheet 7
3 consolidated income statement 8
4 consolidated cash flow statement 9
5 consolidated statement of changes in owner's equity 10-11
6 balance sheet of parent company 12
7. Income statement of the parent company 13
8 cash flow statement of parent company 14
9. Statement of changes in owner's equity of the parent company 15-16
Notes to financial statements 10-17
Audit report
Rong Cheng Shen Zi [2022] No. 518z0239 Shenzhen Increase Technology Co.Ltd(300713) all shareholders:
1、 Audit opinion
We have audited the financial statements of Shenzhen Increase Technology Co.Ltd(300713) (hereinafter referred to as Shenzhen Increase Technology Co.Ltd(300713) ), 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 accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Shenzhen Increase Technology Co.Ltd(300713) 2021 as of December 31, 2021 and the operating results and cash flows of Shenzhen Increase Technology Co.Ltd(300713) 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 Shenzhen Increase Technology Co.Ltd(300713) , 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.
(I) impairment of accounts receivable
1. Item description
See notes III, 10 financial instruments and notes V and 4 accounts receivable to the financial statements.
As of December 31, 2021, the book balance of accounts receivable in Shenzhen Increase Technology Co.Ltd(300713) consolidated financial statements is 19092187196 yuan, the bad debt provision is 2340192071 yuan, and the book value is 16751995125 yuan, accounting for 16.95% of the total assets.
Shenzhen Increase Technology Co.Ltd(300713) Management (hereinafter referred to as the management) measures its loss reserves according to the expected credit loss amount in the whole duration based on the credit risk characteristics of various accounts receivable and the combination of individual accounts receivable or accounts receivable. For the accounts receivable with objective evidence indicating impairment and other accounts receivable applicable to single evaluation, the impairment test shall be conducted separately, the expected credit loss shall be recognized, and the single impairment provision shall be withdrawn; For the accounts receivable without objective evidence of impairment, the accounts receivable are divided into several combinations according to the characteristics of credit risk, and the expected credit loss is calculated on the basis of the combination.
Due to the significant amount of accounts receivable, the amount of impairment has a significant impact on the financial statements and involves the significant judgment and estimation of the management, we identify the impairment of accounts receivable as a key audit event.
2. Audit response
The relevant procedures for the implementation of impairment of accounts receivable mainly include:
(1) Understand and test the design and operation of the management's key internal control related to the impairment of accounts receivable, and evaluate its effectiveness.
(2) For accounts receivable for which bad debts are individually accrued, evaluate whether the basis for individual accrual by the management is sufficient in combination with the customer's operation, court litigation and execution, lawyer's reply, etc; For accounts receivable with bad debt withdrawn by portfolio, evaluate whether the management's division of portfolio is appropriate and whether the estimation of expected credit loss of each portfolio is reasonable.
(3) Review the key parameters affecting the bad debt calculation (such as the aging of accounts receivable) and the accuracy of the management's calculation of the bad debt amount of accounts receivable.
(4) Check the post period collection of accounts receivable and evaluate the rationality of the management's provision for bad debts of accounts receivable.
(5) Review whether the information related to the impairment of accounts receivable has been properly presented in the notes to the financial statements.
(II) revenue recognition
1. Item description
See note III, 26 revenue recognition principles and measurement methods, and note V, 36 operating revenue and operating costs of the financial statements.
In 2021, the company's consolidated operating income was 255 million yuan. The recognition mode of the company's product sales revenue is: after the company's products are transported to the designated place, for the products that are explicitly required to be provided with acceptance basis by the customer in the contract, the revenue is recognized after the customer passes the acceptance and provides relevant acceptance basis; For products that are not explicitly required in the contract to require the customer to issue the acceptance basis, if the customer does not raise a written objection within the acceptance period, it shall be deemed as qualified, and the company shall recognize the revenue after checking with the customer.
As revenue is one of the company's key performance indicators, there is an inherent risk that the management manipulates the time point of revenue recognition in order to achieve specific goals or expectations. Therefore, we identify revenue recognition as a key audit matter. 2. Audit response
(1) Understand and test the design and operation of key internal control related to revenue recognition of the management, and evaluate its effectiveness.
(2) Implement analysis procedures for income and cost, including: analysis of monthly income, cost and gross profit margin fluctuations in the reporting period, comparative analysis of income, cost and gross profit margin of main products in the reporting period, and evaluate the rationality of changes in income related indicators.
(3) Select samples from the accounting records and delivery records of sales revenue, and check the contract order, delivery note, receipt / acceptance note, invoice and other information related to the sales.
(4) According to the transaction amount and transaction balance of customers, select samples to implement the letter confirmation procedure and evaluate the authenticity and integrity of revenue recognition.
(5) For the income transactions recorded before and after the balance sheet date, select samples, check the receipt / acceptance form and other supporting documents, and evaluate whether the income is recorded in the appropriate accounting period.
4、 Other information
The management is responsible for other information. Other information includes the information covered in Shenzhen Increase Technology Co.Ltd(300713) 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 the going concern ability of Shenzhen Increase Technology Co.Ltd(300713) , disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Shenzhen Increase Technology Co.Ltd(300713) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Shenzhen Increase Technology Co.Ltd(300713) .
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:
(1) 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.
(2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(4) Draw conclusions on the appropriateness of management's use of going concern assumptions. 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 Shenzhen Increase Technology Co.Ltd(300713) 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 Shenzhen Increase Technology Co.Ltd(300713) unable to continue operation.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Shenzhen Increase Technology Co.Ltd(300713) to express an audit opinion 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 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.
(this page is the signature and seal page of Shenzhen Increase Technology Co.Ltd(300713) Rong Cheng Shen Zi [2022] No. 518z0239 report.)
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Pan Xinhua (project partner) Chinese certified public accountant:
Zi Qiang Wang
Beijing, China Certified Public Accountant:
Shi Xiaojun
April 22, 2022
financial statements
The unit of the statement in the financial notes is: yuan 1. The preparation unit of the consolidated balance sheet is Shenzhen Increase Technology Co.Ltd(300713)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 1435072546413356190483
Provision for settlement
Lending funds
Trading financial assets
