Body of audit report
Yksz (2022) No. 0139006 Shenzhen Sunwin Intelligent Co.Ltd(300044) all shareholders:
audit opinion
We have audited the financial statements of Shenzhen Sunwin Intelligent Co.Ltd(300044) (hereinafter referred to as "saiweizhi"), including the consolidated and company's balance sheet as of December 31, 2021, the consolidated and company's income statement, consolidated and company's cash flow statement, consolidated and 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 provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Saiwei intelligent as of December 31, 2021 and the operating results and cash flow of the company in 2021.
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 Saiwei intelligence 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.
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:
（1） Goodwill impairment
1. Event description
As of December 31, 2021, as described in note VI and (XX) of Saiwei intelligent consolidated financial statements, the original book value of goodwill in Saiwei intelligent consolidated financial statements is 1008901900 yuan, the accrued provision for goodwill impairment is 993751200 yuan, and the book value is 15150800 yuan. The amount of goodwill impairment accrued by Saiwei intelligent in the current period is relatively high, which is mainly due to the goodwill impairment formed by Saiwei intelligent accrual of happy person information. Saiwei intelligent management conducts impairment test on goodwill at the end of each year and adjusts the book value of goodwill according to the results of impairment test. The results of goodwill impairment test largely depend on the estimates made and assumptions adopted by the management, such as the estimation of the expected future cash flow and discount rate of the asset group. These estimates are affected by the management's judgment on the future market and the economic environment. Adopting different estimates and assumptions will have a great impact on the recoverable value of the assessed goodwill. Therefore, we identify the assessment of goodwill impairment provision as a key audit matter.
2. Audit response
Our audit procedures mainly include reviewing the recognition of the asset group and the allocation method of goodwill by the management; Understand the historical performance and development plan of each asset group, as well as the development trend of macro economy and its industry; Evaluate the assumptions and methods adopted by the management in estimating the recoverable value of assets; Review the reasonableness of the cash flow forecast level and discount rate adopted in the appraisal report, including the expected sales revenue, future sales growth rate, expected gross profit margin and related expenses of the asset group, and compare and analyze with the historical data and industry level of the relevant asset group; And review the disclosure related to goodwill impairment assessment in the financial statements.
（2） Revenue recognition
1. Event description
As described in notes v. (29) and VI. (43) to the financial statements of Saiwei smart, the operating revenue of Saiwei smart in 2021 is 1032394700 yuan, mainly including construction contract revenue, online game revenue and education and medical service revenue. Whether the recognition of operating revenue is appropriate has a great impact on the operating results of Saiwei intelligent. We pay attention to the recognition of construction contract revenue, online game revenue and education and medical service revenue. (1) Saiwei intelligent adopts the percentage of completion method to recognize the business income of construction contract, and determines the completion schedule based on the proportion of the cost incurred in the estimated total cost. Calculating the estimated total cost of the contract involves significant accounting estimates and judgments, including unforeseen expenses that exist or may occur before completion. Relevant accounting involves significant accounting estimates and judgments. (2) The happy man information of Saiwei intelligent subsidiary mainly adopts the income recognized when game players use virtual currency to buy virtual props, which involves complex information technology systems and estimation. The occurrence and integrity of income have a significant impact on the completion performance of happy man information of the subsidiary, gambling commitment and the overall operating results of Saiwei intelligent. (3) The occurrence and accuracy of education and medical service income will have a great impact on the results of Saiwei intelligent business; Therefore, we identified the correct collection of the actual cost of the construction contract and the rationality of the estimated total cost, the occurrence and completeness of online game revenue, and the occurrence and accuracy of education and medical service revenue as key audit matters.
2. Audit response
(1) For the correct collection of construction contract revenue and actual cost and the rationality of the estimated total cost, the main audit procedures we performed are as follows: (1) understand and evaluate the internal control design related to the recording of construction contract business revenue and cost by the management, and test the effectiveness of the implementation of key controls, including the internal control related to the actual project cost and the estimated total contract cost; Implement analytical review procedures and analyze the rationality of the gross profit margin of the company's sales revenue in combination with the industry situation; Select the sample of construction contract, check the contract, invoice, material receipt and distribution sheet, settlement sheet and other supporting documents of the actual project cost, evaluate the correct collection of the actual cost, adopt the sampling method, compare and analyze the estimated total cost of unfinished projects with the historical actual cost of similar completed projects, and evaluate the experience and ability of the management to make this judgment and estimation; Take the sampling method to check the preparation basis of the estimated total cost of Saiwei intelligence and evaluate the rationality of the estimated total cost; By sampling, the cost of the completed project entrusted by Saiwei intelligent is reviewed by experts, checked with the actual settlement price, and evaluated the rationality of the settlement amount of the completed project; Complete the survey of the construction site by sampling; Combined with the audit of accounts receivable, the settlement amount of important customers this year is confirmed by letter to evaluate the authenticity and integrity of sales revenue. (2) For the occurrence and integrity of online game revenue, the main audit procedures we perform are as follows: evaluate the manual and automatic control measures of the subsidiary's happy person information on the online game revenue recognition procedure; Check the vouchers reviewed by the management and test the authenticity and integrity of the game background data; Analyze the life cycle of online game revenue, etc. (3) For the occurrence and accuracy of education and medical service income, the main audit procedures we perform are as follows: evaluate the design and implementation of internal control related to the income of Saiwei intelligent education and medical service; Take the sampling method to check the sales contract, sales invoice, collection account, allocation account, transportation and acceptance form and other documents related to the education and medical service revenue of Saiwei intelligence, and evaluate the occurrence and accuracy of product sales revenue.
（3） Bad debt provision for accounts receivable and notes receivable
1. Event description
As described in notes VI (III) and VI (IV) of Saiwei intelligent financial statements, as of December 31, 2021, the book balance of notes receivable of the company was RMB 10118589 million, and the balance of bad debt provision for notes receivable was RMB 1285375 million. The book balance of the company's accounts receivable is 9556069 million yuan, and the balance of bad debt reserves of accounts receivable is 6587453 million yuan. The determination of the year-end book value of notes receivable and accounts receivable requires the management to identify the items and objective evidence that have been impaired, evaluate the expected future available cash flow and determine its present value, which involves the management to use significant accounting estimates and judgments, and if the notes receivable and accounts receivable are recovered on schedule or cannot be recovered, the bad debt loss will have a significant impact on the financial statements. Therefore, We identified notes receivable and bad debt provision for accounts receivable as key audit matters.
2. Audit response
(1) Understand, evaluate and test the effectiveness of internal control design and operation related to notes receivable and bad debt provision for accounts receivable; (2) The review competition is whether the grouping method of notes receivable and accounts receivable customers by the intelligent management in calculating the expected credit loss is consistent with the disclosure of accounting policies; (3) Understand and evaluate the accounting policies and calculation process of Saiwei intelligent management on the bad debt provision of notes receivable and accounts receivable, combined with the historical default data, and evaluate the rationality of the adjustment of historical data considering the current economic situation and forward-looking information, so as to evaluate the rationality of the management's estimation of bad debt provision; (4) Obtain the aging details of accounts receivable and the expected credit loss accrual table prepared by Saiwei intelligent management, recalculate and evaluate the rationality of the expected credit loss accrual of accounts receivable by analyzing the aging of accounts receivable, customer settlement period, reputation and combined with the expected credit loss accrual method; (5) Select samples to implement letter of credit procedures for notes receivable and accounts receivable, sample and inspect the collection after the period, and further evaluate the rationality of the provision of expected credit loss of accounts receivable by the management; (6) Check the compliance of relevant transaction contracts, credit terms and actual credit terms
Situation; (7) Check the implementation of the project and interview customers; (8) Check whether the presentation and disclosure of information related to bad debt provision of accounts receivable in the financial statements are sufficient and appropriate.
Other matters
1. The balance sheet as of December 31, 2020, the income statement, cash flow statement, statement of changes in shareholders' equity and notes to relevant financial statements in 2020 were audited by Zhonghui Certified Public Accountants (special general partnership), and the audit report of no opinion of Zhonghui kuaishan [2021] No. 2231 was issued on April 22, 2021.
On April 26, 2022, Saiwei smart issued the special instructions for the correction of major accounting errors in the early stage, corrected and comprehensively retroactively restated the financial statements of 2018, 2019 and 2020, and issued the audit report on the special instructions for the correction of major accounting errors in the early stage of Shenzhen Saiwei smart Co., Ltd. (Yahui zhuanshen Zi (2022) No. 0139004).
2. Because the actual situation of some capital expenditure of Saiwei intelligent is inconsistent with that disclosed in the 2020 semi annual report and 2020 annual report, the capital collection of some accounts receivable in 2020 of Shenzhen Qianhai Boyi Technology Development Co., Ltd., a wholly-owned subsidiary, ultimately comes from the company, which constitutes the collection of fictitious accounts receivable. On May 10, 2021, Shenzhen regulatory bureau of China Securities Regulatory Commission has issued a decision on administrative supervision measures.
Other information
Saiwei intelligent management (hereinafter referred to as "management") is responsible for other information. Other information includes the information covered in the 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.
Responsibilities of management and governance for financial statements
Saiwei intelligent management (hereinafter referred to as "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 evaluating the going concern ability of Saiwei intelligent, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Saiwei intelligent, terminate operation or has no other realistic choice.
The governance layer is responsible for overseeing Saiwei's intelligent financial reporting process.
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 to design appropriate audit procedures.
(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 Saiwei's intelligent 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 Saiwei intelligence to be unable to continue its business.
(V) evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events. (VI) obtain sufficient financial information for the entity or business activity in the smart game
