Western Regions Tourism Development Co.Ltd(300859) audit report and financial statements for the year 2021
Western Regions Tourism Development Co.Ltd(300859)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-4 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 1-98
Audit report
Xin Hui Shi Bao Zi [2022] No. za11628 Western Regions Tourism Development Co.Ltd(300859) all shareholders:
1、 Audit opinion
We have audited the financial statements of Western Regions Tourism Development Co.Ltd(300859) (hereinafter referred to as Xiyu Tourism), 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 consolidated and parent company’s financial position as of December 31, 2021 and the consolidated and parent company’s operating results and cash flow 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of western tourism 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) recognition of income
Our main audit procedures for revenue recognition include:
1. Understand and evaluate the effectiveness of the design and operation of internal control related to operating revenue recognition.
2. Review whether the accounting policies and specific methods for revenue recognition are correct, and refer to consolidated financial statements for details of accounting policies and revenue analysis for revenue recognition and consistent application. Note 3 of “III. important accounting policies and accounting estimates” in the notes to the financial statements 3. Analyze the operating income and gross profit in combination with the type of income. The accounting policies described in 21 and “v. project review of the consolidated financial statements to judge whether there is abnormal fluctuation in the amount of income in the current period. Note 33”. 4. Obtain the business system data and check with the revenue data confirmed by the financial system. The operating revenue of western tourism mainly includes tourism passenger transport revenue and cableway transportation to confirm whether it is consistent. Income, cruise income and travel agency income. As revenue is one of the key performance indicators of western region tourism 5. For tourism passenger revenue, cableway transportation revenue and cruise ship revenue, there is an inherent risk that the management will recognize the revenue according to the number and regulatory objectives of vehicles, cableways and cruise ships in the company’s fixed assets or expected manipulation, we will calculate the scale of passengers by western region tourism, Revenue recognition with book revenue is recognized as a key audit event. Compare and analyze the rationality of carrying personnel.
6. Select samples from the operating income records to conduct sampling tests and check whether the supporting documents are complete.
7. Conduct income cut-off test and pay attention to whether there are significant intertemporal situations.
4、 Other information
The Western Tourism Management (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Xiyu tourism, 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 sustainable operation ability of western tourism, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless it plans to liquidate, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of western tourism.
6、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. 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 the sustainable operation ability of western tourism. 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 lead to the unsustainable operation of western tourism.
(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 western tourism to express an audit opinion on the consolidated financial statements. We are fully responsible for the audit, guidance and implementation of the audit opinions of the group.
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.
Chinese Certified Public Accountants of Lixin certified public accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Shanghai, China April 26, 2002
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets closing balance of last year
Current assets:
Monetary capital (I) 2593440563717276602170
Provision for settlement
Lending funds
Trading financial assets (Ⅱ) 8024657534
Derivative financial assets
Notes receivable
Accounts receivable (III) 182848377199473538
Receivables financing
Prepayment (IV) 124520599180805927
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables (V) 4687018522078846
Purchase of resale financial assets
Inventory (VI) 101380419105221708
Contract assets
Assets held for sale
Non current assets due within one year
Other current assets (VII) 384206723399874643
Total current assets 2677423194026208714366
Non current assets:
Loans and advances
Debt investment
