China Audit Asia Pacific Certified Public Accountants LLP
Audit report
AUDIT REPORT
Mengshi new energy technology (Henan) Co., Ltd
Audit of financial statements in 2021
Beijing, China
BEIJING CHINA
catalogue
1、 Audit report 1 II. Audited financial statements
1. Consolidated balance sheet 4 2. Consolidated income statement 6 3. Consolidated cash flow statement 7 4. Consolidated statement of changes in shareholders’ equity 8 5. Balance sheet 10 6. Income statement 12 7. Cash flow statement 13 8. Statement of changes in shareholders’ equity 14 9. Notes to financial statements 16
China Audit Asia Pacific Certified Public Accountants LLP
audit report
All shareholders of Lion New Energy Technology (Henan) Co., Ltd. (zsapssz (2022) No. Haima Automobile Co.Ltd(000572) ):
1、 Unable to express an opinion
We are entrusted to audit the financial statements of Lion New Energy Technology (Henan) Co., Ltd. (hereinafter referred to as “lion technology”), including the consolidated and company balance sheet as of December 31, 2021, the consolidated and company income statement, consolidated and company cash flow statement, consolidated and company statement of changes in shareholders’ equity and notes to relevant financial statements in 2021.
We do not express an audit opinion on the attached financial statements of lion technology. Due to the importance of the matters described in the section “forming the basis of unable to express an opinion”, we are unable to obtain sufficient and appropriate audit evidence as the basis for issuing an audit opinion on the financial statements.
2、 Form a basis on which opinions cannot be expressed
(I) debt forgiveness
As stated in note 6.52 of the financial statements, the investment income from the debt restructuring of lion technology in 2021 was RMB 2140487000, of which the investment income from the debt exemption of creditors to lion technology in December 2021 was RMB 2082521700. Mengshi technology and its subsidiaries received the debt exemption notice and debt exemption letter issued by creditors in December 2021. The amount of creditor’s rights involved in the debt exemption notice and debt exemption letter (base date: November 30, 2021) was 4030278100 yuan, with a total amount of 3404198500 yuan. Among them, the amount of creditor’s rights exempted as a shareholder of the listed company was 1321676800 yuan, and the amount of creditor’s rights exempted by other creditors was 2082521700 yuan.
Due to the failure to obtain sufficient and appropriate audit evidence for the creditor’s debt exemption of lion technology, we are unable to judge the authenticity and commercial rationality of the debt exemption made by other creditors except the creditor who is a shareholder of the listed company.
(II) it is impossible to judge whether the financial statements prepared by the company on the assumption of going concern are appropriate
China Audit Asia Pacific Certified Public Accountants LLP
As stated in notes 2.2 to the financial statements, continuous operation and 13.2 contingencies, Mengshi technology has suffered operating losses for many years. After deducting non recurring profits and losses, the net profit attributable to the shareholders of the listed company this year was -1117578400 yuan. Of the short-term loans of 1243593600 yuan at the end of the period, 1173493000 yuan was overdue, there were many litigation matters, and some assets were sealed up and frozen by the court, These circumstances indicate that there are significant uncertainties that may lead to major doubts about the going concern ability of lion technology. Lion technology has disclosed the management’s analysis and improvement measures for going concern, but we still cannot judge whether it is appropriate for lion technology’s management to use the assumption of going concern to prepare the financial statements of 2021.
(III) the financial information of durion energy AG, an overseas subsidiary, is incomplete
As of December 31, 2021, durion energy Ag (registered address of the company is didingen, Switzerland), a holding subsidiary of lion technology with a shareholding ratio of 55%, had net assets equivalent to -7.3421 million yuan and net profit equivalent to -2.1252 million yuan in 2021. As of the date of issuance of this audit report, the overseas intermediary employed by lion technology failed to provide complete financial information and audit reports of durion energy Ag for 2020 and 2021, and we were unable to obtain sufficient and appropriate audit evidence to judge durion energy AG Whether the presentation of the financial statements is correct, so it is impossible to judge the impact of the event on the financial statements.
3、 Responsibilities of management and governance for financial statements
The management of lion Technology (hereinafter referred to as 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.
In preparing the financial statements, the management is responsible for evaluating the going concern ability of lion technology, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate lion technology, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of lion technology.
4、 Responsibilities of certified public accountants for the audit of financial statements
Our responsibility is to audit the financial statements of lion technology in accordance with the auditing standards for Chinese certified public accountants, so as to issue the audit report. However, due to the matters described in the section “forming the basis for unable to express opinions”, we are unable to obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions.
In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of lion technology and have fulfilled other responsibilities in terms of professional ethics.
China Audit Asia Pacific Certified Public Accountants LLP
(there is no text on this page, which is the signature and seal page of the 2021 annual audit report of Lion New Energy Technology (Henan) Co., Ltd. (Report No.: zsapssz (2022) Haima Automobile Co.Ltd(000572) ))
China certified public accountant of China Audit Asia Pacific Certified Public Accountants: Li Yansheng (project partner) (special general partnership)
Chinese certified public accountant: Chen Chunlei
Beijing, China April 29, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Lion New Energy Technology (Henan) Co., Ltd. monetary unit: RMB
End of year balance note
Current assets:
Monetary Fund 6.1566967643 88208710960
Trading financial assets 6.251160000
Notes receivable of derivative financial assets
Accounts receivable 6.3 607,24 1,4 64.921212, 97 Zanyu Technology Group Co.Ltd(002637)
Receivables financing 6.44325506668973, 142.15
Prepayment 6.5512787433 35106242949
Other receivables 6.6 364,80 1,3 01.48 436,27 5,7 00.41
Including: interest receivable 6.6
Dividends receivable
Inventory 6.7 358,16 9,0 17.69 575,61 8,3 86.54
Contract assets 6.837753484053309, 244.76
Assets held for sale
Non current assets due within one year: 6.9, 396870998, 2136, 281.37
Other current assets 6.10 227,06 3,8 89.34 263,58 0,7 33.51
Total current assets 1711, 8104818, 3 2636, 01305420
Non current assets: debt investment and other debt investment
Long term receivables 6.116702487111991182179
Long term equity investment 6.12207646824 02037026059
Investment in other equity instruments 6.132988 February 2005 23647699433
Other non current financial assets 6.142287402542276, 728.82
Investment real estate 6.15 152,31 6,0 49.239142608618
fixed assets
