Annual financial report for 2021
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: April 27, 2022
Name of audit institution: Rongcheng Certified Public Accountants (special general partnership)
Audit Report No.: Rongcheng Shenzi [2022] No. 518z0149
Names of Certified Public Accountants pan Xinhua, Huang Huijun and Deng Ruifei
Body of audit report
Audit report
Rong Cheng Shen Zi [2022] No. 518z0149 Tongyu Communication Inc(002792) all shareholders:
1、 Audit opinion
We have audited the financial statements of Tongyu Communication Inc(002792) (hereinafter referred to as " Tongyu Communication Inc(002792) "), 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 provisions of 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Tongyu Communication Inc(002792) , 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. (I) revenue recognition
1. Item description
See notes III, 26, V and 39 to the financial statements.
As the consolidated operating income of Tongyu Communication Inc(002792) 2021 is 1386729200 yuan, which is an important part of Tongyu Communication Inc(002792) consolidated income statement. There may be potential misstatement in the authenticity and cut-off of operating income, so we determine the revenue recognition as a key audit matter.
2. Audit response
Our relevant procedures for revenue recognition mainly include:
(1) Understand and evaluate the design of internal control in the sales process of Tongyu Communication Inc(002792) management from the approval of sales orders to the entry of operating revenue, and test the effectiveness of the implementation of relevant key internal control.
(2) Sample sales contracts and interview Tongyu Communication Inc(002792) management to analyze the time point of control transfer related to operating revenue recognition, and then evaluate the rationality of the management's operating revenue recognition policy.
(3) Carry out analytical review procedures for operating income and gross profit, and judge the rationality of changes in operating income and gross profit margin this year.
(4) The following sampling procedures are adopted for business income:
① Select samples to check the original documents confirming the operating revenue and verify the authenticity of the operating revenue. At the same time, select some original documents to check with the book records to verify the integrity of operating income.
② According to the characteristics and nature of customer transactions, select samples to implement letter of confirmation procedures to confirm the balance of accounts receivable and the amount of sales revenue.
③ Perform a cut-off test on operating income to assess whether operating income has been included in the appropriate accounting period. (II) provision for bad debts of accounts receivable
1. Item description
See notes III, 10, V and 4 to the financial statements.
As of December 31, 2021, the book value of Tongyu Communication Inc(002792) accounts receivable was RMB 574780500, which is an important component of Tongyu Communication Inc(002792) consolidated balance sheet.
Tongyu Communication Inc(002792) the management (hereinafter referred to as the management) shall regularly evaluate the bad debt reserves of accounts receivable. The calculation of bad debt provision for accounts receivable is based on the management's estimation of expected credit loss. The estimation needs to consider the past default, the repayment records of customers, the aging of accounts receivable in the balance sheet and the latest financial situation of customers, as well as other relevant situations of some customers and the prediction of future economic conditions. Due to the inherent subjectivity in the estimation of expected credit loss, the determination of bad debt provision for accounts receivable requires significant judgment and estimation by the management. Therefore, we determine the withdrawal of bad debt provision for accounts receivable as a key audit event.
2. Audit response
The relevant procedures for the provision of bad debt reserves for accounts receivable mainly include:
(1) Evaluate and test the design and operation effectiveness of management's credit policy and internal control related to accounts receivable management. (2) Evaluate the rationality of the management's expected credit loss of accounts receivable, and specifically consider the customer's historical credit situation, macroeconomic environment, default or delayed payment, etc. after correction based on forward-looking factors.
(3) For accounts receivable for which bad debt provision is withdrawn according to aging combination, select samples to check the accuracy of accounts receivable aging analysis table prepared by management; Analyze the aging of accounts receivable and customer reputation, implement the letter of confirmation procedure of accounts receivable and the collection after the inspection period, and evaluate the rationality of the provision for bad debts of accounts receivable.
(4) For accounts receivable with single provision for bad debts, select samples to check the basis for the management's estimation of the expected future recoverable amount, including customer credit records, capital status or delayed payment records and the actual repayment after the period, and review its rationality. (III) provision for inventory falling price reserves
1. Item description
See notes III, 12, V and 8 to the financial statements.
As of December 31, 2021, the book value of Tongyu Communication Inc(002792) inventory is RMB 526727900, which is an important component of Tongyu Communication Inc(002792) consolidated balance sheet.
The withdrawal of inventory falling price reserves depends on the management's estimation of the net realizable value of inventories.
The determination of the net realizable value of inventories requires the management to estimate the selling price of inventories, the costs to be incurred by the time of completion, the sales expenses and the amount of relevant taxes. Since the determination of the book value of inventories at the end of the year 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's use of significant accounting estimates and judgments, we determine the provision for inventory falling price reserves as a key audit event.
2. Audit response
The relevant procedures for the provision of inventory falling price reserves mainly include:
(1) Evaluate and test the design and operation effectiveness of internal control related to inventory falling price reserves of the management.
(2) Implement supervision and confirmation procedures for inventory, and spot check the quantity and status of inventory.
(3) Obtain the year-end inventory age list of inventory, compare the sales price on the balance sheet date or after the period in combination with the product market situation, analyze and review the inventory with long inventory age, and evaluate whether the inventory falling price reserve is reasonable.
(4) Obtain the calculation table of inventory falling price reserves, review the process of inventory impairment test, spot check whether it is implemented in accordance with Tongyu Communication Inc(002792) relevant accounting policies, check the changes of inventory falling price accrued in previous years in this year, and verify whether the provision of inventory falling price reserves is sufficient.
4、 Other information
The management is responsible for other information. Other information includes the information covered in the annual report of Tongyu Communication Inc(002792) 2021, 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 evaluating the going concern ability of Tongyu Communication Inc(002792) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Tongyu Communication Inc(002792) , terminate the operation or has no other realistic choice.
Tongyu Communication Inc(002792) governance layer (hereinafter referred to as governance layer) is responsible for supervising the financial reporting process of Tongyu Communication Inc(002792) .
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:
(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. 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.
(2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(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 Tongyu Communication Inc(002792) 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 Tongyu Communication Inc(002792) inability 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.
(6) Obtain sufficient and appropriate audit evidence on the financial information of the entity or business activities in Tongyu Communication Inc(002792) to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
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.
(there is no text on this page, which is the signature and seal page of Tongyu Communication Inc(002792) Rongcheng Shenzi [2022] No. 518z0149 report.)
Rongcheng certified public accountants China Certified Public Accountants:
(special general partnership) Pan Xinhua (project partner)
Chinese certified public accountant:
Huang Huijun
Beijing, China Certified Public Accountant:
Deng Ruifei
April 27, 2022
2、 The unit of the statement in the notes to the financial statements is: yuan
1. Consolidated balance sheet prepared by: Tongyu Communication Inc(002792)
April 27, 2022
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary Fund
