audit report
Rong Cheng Shen Zi [2021] No. 110z0096
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 audit report 1-5
2 balance sheet 6
3 income statement 7
4 cash flow statement 8
5 statement of changes in owner’s equity 9 – 10
6 notes to the financial statements 11 – 104
Rong Cheng Shen Zi [2021] No. 110z0096 audit report
Kingsemi Co.Ltd(688037) all shareholders:
1、 Audit opinion
We have audited the financial statements of Kingsemi Co.Ltd(688037) (hereinafter referred to as Kingsemi Co.Ltd(688037) ), including the balance sheet as of December 31, 2020, the income statement, cash flow statement, statement of changes in owner’s equity and notes to relevant financial statements in 2020.
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 Kingsemi Co.Ltd(688037) as of December 31, 2020 and the operating results and cash flow in 2020.
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 Kingsemi Co.Ltd(688037) 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 do not express separate opinions on these matters.
(I) recognition of operating income
1. Event description
See notes III, 22 and V, 31 to the financial statements.
Kingsemi Co.Ltd(688037) mainly engaged in the R & D, production and sales of semiconductor special equipment. According to the contract, Kingsemi Co.Ltd(688037) the revenue shall be recognized after the products are handed over to the customer, the installation and commissioning are completed, and the acceptance is qualified. Kingsemi Co.Ltd(688037) the operating revenue in 2020 is 328.9002 million yuan.
Due to the large amount of operating revenue and one of the important financial indicators of Kingsemi Co.Ltd(688037) , there is an inherent risk that Kingsemi Co.Ltd(688037) Management (hereinafter referred to as management) achieves specific objectives or expectations through inappropriate revenue recognition. Therefore, we identify the recognition of operating revenue as a key audit matter.
2. Audit response
Our main audit procedures for the recognition of operating revenue include:
(1) Understand, evaluate and test the internal control related to the recognition of operating revenue, and review the rationality of relevant internal control design and the effectiveness of implementation.
(2) Perform analysis procedures for operating income, including comparative analysis of changes in annual, main products, comprehensive gross profit margin and gross profit margin of Listed Companies in the same industry during the reporting period.
(3) Select samples from the accounting records of operating revenue, check the sales contract, acceptance report, invoice and other information related to the sales, and confirm the authenticity and accuracy of the recorded revenue in combination with the letter of confirmation procedure.
(4) In view of the possible integrity risk, take the product delivery order as the starting point, randomly select the delivery order, continue the business chain, check the relevant vouchers, and finally check the bookkeeping vouchers to confirm whether the products have been issued without records.
(5) Execute the cut-off test procedure and select the revenue transaction samples recorded before and after the balance sheet date. Domestic sales, focusing on the product acceptance report issued by the customer and the payment collection after the period; For overseas sales, check with the data recorded in the customs declaration system, pay attention to the customs declaration date, settlement method, acceptance report and subsequent payment collection, so as to verify whether the operating revenue is recorded in the appropriate accounting period.
By performing the above audit procedures, we believe that the management’s recognition of operating revenue is appropriate.
4、 Other information
The management is responsible for other information. Other information includes the information covered in the Kingsemi Co.Ltd(688037) 2020 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 do 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 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 Kingsemi Co.Ltd(688037) , disclosing matters related to going concern and applying the going concern assumption, unless the management plans to liquidate Kingsemi Co.Ltd(688037) , terminate the operation or has no other realistic choice.
The Kingsemi Co.Ltd(688037) governance layer (hereinafter referred to as the governance layer) is responsible for supervising the financial reporting process of Kingsemi Co.Ltd(688037) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement due to fraud or error, and to issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that an audit performed in accordance with audit standards can 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 performing audit work in accordance with 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. As fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failure to find material misstatement caused by fraud is higher than that caused by 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 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 is significant uncertainty in the matters or circumstances that may lead to major doubts about Kingsemi Co.Ltd(688037) 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 result in Kingsemi Co.Ltd(688037) being unable to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
We communicate with the management on the planned audit scope, schedule and major audit findings, including the noteworthy internal control defects 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 to 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.
(there is no text on this page, which is the signature and seal page of report Kingsemi Co.Ltd(688037) Rong Cheng Shen Zi [2021] No. 11 0z0096)
China certified public accountant of Rongcheng Certified Public Accountants (project partner):
(special general partnership)
Beijing, China Certified Public Accountant:
Chinese certified public accountant:
March 19, 2021
Balance sheet
December 31, 2020
Prepared by: Kingsemi Co.Ltd(688037) unit: RMB currency: RMB
Notes to assets December 31, 2020 December 31, 2019 notes to liabilities and owner’s equity December 31, 2020 December 31, 2019
Current assets: current liabilities:
Monetary capital v. 1 442414302.78 330061939.46 short term loan v. 17 21851914.52
Trading financial assets v. 2 120000000.00 trading financial liabilities
Derivative financial assets derivative financial liabilities
Notes receivable v. 3 5844222.70 13867047.65 notes payable v. 18 91039828.76 14307435.56
Accounts receivable V, 4 84307944.47 54848913.77 accounts payable V, 19 127069712.42 58415920.51
Receivables financing v. 5 4066914.70 8396788.24 advance receipts v. 20 57163926.42
Prepayment v. 6 49091721.54 8992565.20 contract liabilities v. 21 132377198.56 not applicable
Other receivables v. 7 5573891.65 4950478.85 payroll payable v. 22 13384166.00 6488125.00
Including: interest receivable
