Beijing Orient Landscape & Environment Co.Ltd(002310)
Consolidated and parent company financial statements in 2021
Audit report
Zhongxinghua Certified Public Accountants (special general partnership)
Zhongxinghua certified publicaccountants LLP address: 20 / F, tower sohob, Lize, No. 20, Lize Road, Fengtai District, Beijing zip code: 100073 Tel: (010) 51423818 Fax: (010) 51423816
catalogue
1、 Audit report II. Attachment of audit report
1. Consolidated balance sheet 2 Consolidated income statement 3 Consolidated cash flow statement 4 Consolidated statement of changes in shareholders' equity 5 Balance sheet of parent company Income statement of parent company 7 Cash flow statement of parent company 8 Statement of changes in shareholders' equity of the parent company 9 Note III to the financial statements and Annex 1 to the audit report Copy of business license of zhongxinghua Certified Public Accountants (special general partnership) 2 Copy of practicing certificate of zhongxinghua Certified Public Accountants (special general partnership) 3 Copy of certified public accountant's practice certificate
Beijing Institute of Certified Public Accountants
Business report unified coding reporting system
Unified code for business reporting: 11000167202127004668
Beijing Orient Landscape & Environment Co.Ltd(002310) 2021 annual report name:
Audit report on consolidated and parent company's financial statements
Report No.: zths Zi (2022) No. 470151
Name of audited (inspected) unit: Beijing Orient Landscape & Environment Co.Ltd(002310)
Name of accounting firm: zhongxinghua accounting firm (special general partnership)
Business type: financial statement audit
Report opinion type: unqualified opinion
Report date: April 26, 2022
Filing date: April 25, 2022
Yan Hongjiang (110101410032),
Signed by:
Cui yabing (110001630281)
(information can be queried by scanning QR code or logging into the official website of Beijing injection Association)
Note: this filing information only proves that the report has been filed with the Beijing Institute of certified public accountants, and does not mean that the Beijing Institute of Certified Public Accountants makes any form of guarantee for the content of the report in any sense.
Zhongxinghua Certified Public Accountants (special general partnership) Z ho N G x i n g h u a c e r t i f i e d p u b l i c a c o n t a n t s l p address (l o c a t i o n): 20 / F, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, No. 20 Lize Road, Fengtai District, Beijing, Beijing PR China Tel (t e l): 0 1 0 - 5 1 4 2 3 8 1 8 fax (f a x): 0 1 0 - 5 1 4 2 3 8 1 6 Audit Report
ZTE Huashen Zi (2022) No. 470151 Beijing Orient Landscape & Environment Co.Ltd(002310) all shareholders:
1、 Audit opinion
We have audited the financial statements of Beijing Orient Landscape & Environment Co.Ltd(002310) (hereinafter referred to as " Beijing Orient Landscape & Environment Co.Ltd(002310) "), 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 accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Beijing Orient Landscape & Environment Co.Ltd(002310) the consolidated and parent company as of December 31, 2021, and the operating results and cash flows of the consolidated and 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Beijing Orient Landscape & Environment Co.Ltd(002310) , 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 opinions. We will not express separate opinions on these matters. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) recognition of engineering business income
1. Item description
As stated in note IV and 33 "revenue" of the financial statements, Beijing Orient Landscape & Environment Co.Ltd(002310) engineering business mainly belongs to the performance obligations performed within a certain period of time, and the revenue is recognized according to the performance progress determined by the input method during the contract period Beijing Orient Landscape & Environment Co.Ltd(002310) Management (hereinafter referred to as "management") makes reasonable estimates of the estimated total contract revenue and the estimated total contract cost according to the engineering contract at the beginning of the contract to determine the performance progress of the contract, and continuously evaluates and revises the contract during the execution of the contract, which involves the management's use of significant accounting estimates and judgments. As the project income is important to the overall financial statements, we recognize it as a key audit matter.
2. Audit response
Our audit procedures for the recognition of engineering business income include:
(1) Understand and evaluate the management's design of internal control related to project revenue and cost accounting, and test the effectiveness of key control implementation.
(2) Obtain the project contract account, select samples, review whether the management's judgment on identifying contracts, identifying individual performance obligations and determining transaction prices is accurate, recalculate the completion percentage of construction contract in the project contract account, and obtain the completion progress confirmed by Party A for comparison to verify its accuracy.
(3) Select the sample of engineering contract, check the construction contract and cost budget data on which the management's estimated total revenue and estimated total cost are based, and evaluate whether the management's estimation is reasonable and sufficient.
(4) Select samples to test the contract performance costs incurred in this year.
(5) Select contract samples, check the image progress of the project on site, ask the project management department, compare with the book records, and evaluate the rationality of the performance progress.
(II) impairment of accounts receivable and contract assets
1. Item description
As stated in Notes 6 and 4 "accounts receivable" and Notes 6 and 9 "contract assets" of the financial statements, as of December 31, 2021, the original book value of accounts receivable in Beijing Orient Landscape & Environment Co.Ltd(002310) consolidated statements was 9741938200 yuan, the bad debt provision was 2754447400 yuan, the original value of contract assets was 1634164200 yuan, and the impairment was 270506100 yuan.
On the basis of expected credit loss, the management conducts impairment accounting treatment for accounts receivable and contract assets and recognizes loss reserves. The management considers all available reasonable and based information to evaluate the expected credit loss, which involves the management's use of significant accounting estimates and judgments. Therefore, we recognize the impairment of accounts receivable and contract assets as key audit matters.
2. Audit response
Our audit procedures for the impairment of accounts receivable and contract assets include:
(1) Test the internal control of the management on the daily management of accounts receivable and contract assets and the impairment test at the end of the period;
(2) Review the relevant considerations and objective evidence of the management's impairment test on accounts receivable and contract assets, and pay attention to whether the management has fully identified the items that have been impaired;
(3) Select samples of accounts receivable and contract assets for which credit losses are separately accrued, and review the basis and rationality of the management's estimation of the expected future cash flow;
(4) For the accounts receivable and contract assets for which the management calculates and withdraws the expected credit loss according to the combination of credit risk characteristics, combined with the historical actual loss rate and forward-looking information, evaluate the rationality of the expected credit loss rate determined by the management;
(5) Select samples to check the post period collection of accounts receivable and post period settlement of contract assets.
(III) impairment of goodwill
1. Item description
As stated in note VI and 22 "goodwill" to the financial statements, as of December 31, 2021, Beijing Orient Landscape & Environment Co.Ltd(002310) consolidated statement, the original book value of goodwill was 2228583 million yuan and the provision for impairment was 4397308 million yuan. Because significant management judgment and estimation were involved in determining whether the impairment of goodwill should be accrued, especially in predicting future cash flow The long-term average growth rate and profit margin, as well as the key assumptions for determining the appropriate discount rate, which are inherently uncertain and may be affected by the bias of management. Therefore, we recognize the impairment of goodwill in the consolidated financial statements as a key audit event.
2. Audit response
Our audit procedures for goodwill impairment test include:
(1) Understand and evaluate the effectiveness of management's internal control design and operation related to goodwill impairment test. (2) Analyze the management's identification of the asset group to which the company's goodwill belongs and the key assumptions and methods used in the goodwill impairment test, test the basic data on which the impairment test of the management is based, understand and evaluate the work of the management using its valuation experts, analyze and check the appropriateness of the assumptions adopted by the management and the rationality of relevant assumptions and methods.
(3) Evaluate the competence, professional quality and objectivity of external valuation experts appointed by the management.
(4) Review and evaluate the key parameters used in the management's forecast: compare and analyze the revenue growth rate in the forecast period with the historical revenue growth rate; Compare the predicted gross profit margin with the historical gross profit margin, and consider the market trend; The discount rate adopted by the management is analyzed.
(5) Evaluate the appropriateness of the valuation methods used by the management in cash flow forecasting; In particular, the cash flow forecast prepared by the management adopts the discount model of estimated future cash flow to calculate the appropriateness of the present value of estimated future cash flow of relevant assets and asset groups.
(6) Verify the calculation accuracy of goodwill impairment test model.
4、 Other information
The management is responsible for other information. Other information includes the information covered in Beijing Orient Landscape & Environment Co.Ltd(002310) 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 Beijing Orient Landscape & Environment Co.Ltd(002310) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Beijing Orient Landscape & Environment Co.Ltd(002310) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Beijing Orient Landscape & Environment Co.Ltd(002310) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Whether the overall audit report is found to be fraudulently or inaccurately based on a reasonable level of assurance, and whether the audit report can not be implemented in accordance with a reasonable level of assurance, and whether the audit report is found to contain a material error, which may be caused by the audit standard, If the misstatement is reasonably expected to affect the economic decisions made by the users of the financial statements based on the financial statements, it is generally considered to be significant.
In the process of auditing in accordance with the auditing standards, we applied professional judgment and maintained professional doubt. At the same time, we also performed the following work:
1. Identify and assess the risks of material misstatement of financial statements caused by 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, false statement or override of internal control, The risk of failing to find material misstatement due to fraud is higher than that of failing to find material misstatement due to error.
2. Understand the internal control related to audit to design appropriate audit procedures.
3. Evaluate the appropriateness of accounting policies selected by the management and make accounting estimates and relevant disclosures
