Safbon Water Service (Holding) Inc.Shanghai(300262) special audit report on correction of accounting errors in the early stage
Safbon Water Service (Holding) Inc.Shanghai(300262)
Description of correction of accounting errors in the previous period
Special audit report
Zhong Hui Zi (2022) No. 04351 Safbon Water Service (Holding) Inc.Shanghai(300262) all shareholders:
Notes on the preparation of our accounting matters (hereinafter referred to as “notes on the preparation of our accounting matters”).
1、 Responsibilities of management
Provide true, legal and complete relevant materials, and prepare event statements in accordance with the accounting standards for Business Enterprises No. 28 – changes in accounting policies and accounting estimates and error correction, the rules for the preparation of information disclosure of companies offering securities to the public No. 19 – correction and related disclosure of financial information (revised 2020) of the China Securities Regulatory Commission, and the relevant format guidelines of Shenzhen Stock Exchange, It is the responsibility of Safbon Water Service (Holding) Inc.Shanghai(300262) management to ensure that its contents are true, accurate and complete without false records, misleading statements or major omissions. 2、 Responsibilities of Certified Public Accountants
Our responsibility is to express audit opinions on the description of matters on the basis of the implementation of audit work.
3、 Job overview
We have carried out the audit business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 – assurance business other than audit or review of historical financial information. The standard requires us to plan and implement the audit to obtain reasonable assurance about whether there is no material misstatement in the description of the matter. During the audit process, we implemented procedures including understanding, inquiry, inspection, recalculation and other procedures that we considered necessary. We believe that our audit work provides a reasonable basis for expressing opinions.
4、 Assurance conclusion
In our opinion, Safbon Water Service (Holding) Inc.Shanghai(300262) the statement of events is prepared in accordance with the accounting standards for Business Enterprises No. 28 – changes in accounting policies and accounting estimates and correction of errors, the rules for the preparation of information disclosure of companies offering securities to the public No. 19 – correction and related disclosure of financial information (revised in 2020) of China Securities Regulatory Commission, and the relevant format guidelines of Shenzhen Stock Exchange, It fairly reflects the correction of accounting errors in Safbon Water Service (Holding) Inc.Shanghai(300262) earlier period.
5、 Restrictions on users and purposes
This special audit report is only for the purpose of Safbon Water Service (Holding) Inc.Shanghai(300262) disclosing the correction of accounting errors in the previous period in accordance with relevant regulations. It shall not be used for any other purpose without the written consent of the firm.
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Zhonghua Certified Public Accountants (special general partnership) Chinese certified public accountant
(project partner)
Chinese certified public accountant
Shanghai, China, April 27, 2022
Safbon Water Service (Holding) Inc.Shanghai(300262)
Description of correction of accounting errors in the previous period
(unless otherwise specified, the monetary unit is RMB)
In accordance with the accounting standards for Business Enterprises No. 28 – changes in accounting policies and accounting estimates and correction of errors, the rules for the preparation of information disclosure by companies offering securities to the public No. 19 – correction and related disclosure of financial information (revised in 2020) of the China Securities Regulatory Commission, and the relevant format guidelines of Shenzhen Stock Exchange, Safbon Water Service (Holding) Inc.Shanghai(300262) (hereinafter referred to as “the company” or “the company”) the correction of accounting errors in the early stage of preparation is described as follows.
1、 Summary of the correction of accounting errors in the previous period
In 2019 and 2020, the company mistakenly adopted the financial accounting method of BOT for the project of Dongying District solid waste disposal center invested and constructed. This early accounting error correction involves 2020 and 2019. In 2020, inventories should be reduced by 1714824340 yuan, construction in progress should be increased by 12769965613 yuan, intangible assets should be reduced by 18283242069 yuan, and undistributed profits should be reduced by 7228100796 yuan; In 2019, the inventory should be reduced by 1714824340 yuan, the construction in progress should be increased by 11580767453 yuan, the intangible assets should be reduced by 17094043909 yuan, and the undistributed profit should be reduced by 7228100796 yuan; The operating income shall be reduced by 16711937869 yuan and the operating cost shall be reduced by 94837073 yuan.
2、 The impact of the correction of previous accounting errors on the company
The company adopts the retrospective restatement method to correct the above previous accounting errors, and makes retrospective adjustments to the consolidated financial statements of 2020 and 2019 accordingly. The impact of the retrospective adjustment on the relevant subjects of the consolidated financial statements is as follows:
Year 2020
Affected comparison period report item name amount before restatement cumulative affected amount amount after restatement
Intangible assets under construction -1259434728473.28474 million -170944 million.387 million -109347 million.387 million.387 million -109347 million.387 million
2019
Affected comparison period report item name amount before restatement cumulative affected amount amount after restatement
Inventory 66371748385 -171482434064656924045 construction in progress 25367431961276996561315306708809
Undistributed profit 67919685553 -722810079660691584757 operating income 95897078177 -1671193786979185140308 operating cost 62333927638 -9483707352850090565
3、 Description of the change in the nature of profit and loss of the company’s disclosed reporting year after retroactive adjustment
This retroactive adjustment reduced the 2019 operating income by 16711937869 yuan and the operating cost by 9483837073 yuan, affecting the 2019 net profit by -7228100796 yuan.
Before this retrospective adjustment, the company’s net profit attributable to shareholders of listed companies and net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2019 were 8052536393 yuan and 3642314294 yuan respectively. After this retroactive adjustment, the company’s net profit attributable to shareholders of listed companies and net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2019 were 824435597 yuan and -3585786502 yuan respectively.
4、 Approval procedures for correction of accounting errors
The correction of accounting errors was reviewed and approved at the 36th meeting of the Fourth Board of directors on April 27, 2022 Safbon Water Service (Holding) Inc.Shanghai(300262) date: April 27, 2022
