Shenzhen Changfang Group Co.Ltd(300301)
Issue a special description of the matters involved that cannot express opinions
Dahuhezi [2022] 008317
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Shenzhen Changfang Group Co.Ltd(300301)
Issue a special description of the matters involved that cannot express opinions
Table of contents page 1. Issue special instructions on matters involving which opinions cannot be expressed 1-2
Dahua Certified Public Accountants (special general partnership) 12 / F, building 7, No. 16 courtyard, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa com. Issue a special description of matters involved in which opinions cannot be expressed. Dahuhezi [2022] No. 008317 Shenzhen Changfang Group Co.Ltd(300301) all shareholders:
We have accepted the entrustment and have completed the audit of the 2021 financial statements of Shenzhen Changfang Group Co.Ltd(300301) (hereinafter referred to as Shenzhen Changfang Group Co.Ltd(300301) ) and issued the audit report of dhsz [2022] 0011571 on April 28, 2022.
In accordance with the provisions of China Securities Regulatory Commission's No. 14 rules for the preparation and reporting of information disclosure of companies offering securities to the public - handling of non-standard audit opinions and matters involved, guidelines for the application of regulatory rules - Audit No. 1 and Shenzhen Stock Exchange GEM Listing Rules, the matters involved in non-standard audit opinions are described as follows:
1、 Contents of non-standard audit opinions
(I) form a basis on which opinions cannot be expressed
1. Impairment of goodwill
As shown in note VI / Note 13 of the financial statements, as of December 31, 2021, the original book value of goodwill formed by Shenzhen Changfang Group Co.Ltd(300301) acquisition of kangmingsheng was 383378500 yuan, and the amount of goodwill impairment provision was 383378500 yuan Shenzhen Changfang Group Co.Ltd(300301) conducted an impairment test on goodwill at the end of 2021 and accrued the amount of goodwill impairment of 148839000 yuan. As the "confirmation of sales rebate, inventory management and customers' collection through the third party" in the event that the cost report cannot express opinions has a significant impact on kangmingsheng's financial statements, we cannot judge whether the amount of goodwill impairment in 3 Guangdong Dongpeng Holdings Co.Ltd(003012) 021 is reasonable.
2. Confirmation of sales rebate
On April 23, 2022, kangmingsheng, a Shenzhen Changfang Group Co.Ltd(300301) subsidiary, found that there were unrecorded sales rebates in its financial statements in 2021, involving a rebate amount of 1682732 million yuan. Due to the failure to obtain sufficient and appropriate audit evidence to prove the authenticity and commercial rationality of the above sales rebate contract, we are unable to judge the impact of the above matters on Shenzhen Changfang Group Co.Ltd(300301) financial statements.
3. Inventory management
Shenzhen Changfang Group Co.Ltd(300301) subsidiary kangmingsheng had a closing inventory book balance of 191112500 yuan and a closing inventory falling price reserve balance of 19537400 yuan. The project team found a large number of dead goods in the process of annual audit and supervision, and asked the company to provide a true and complete list of dead goods and relevant materials forming the dead process. According to the list of dead goods provided by Kang Mingsheng, as of December 31, 2021, the book balance of inventory in the list of dead goods was 17.938 million yuan. Due to the failure to further obtain sufficient and appropriate audit evidence to prove the completeness and formation time of the relevant list of dead goods, we are unable to judge the rationality of the overall amount of dead goods and the provision for falling price. 4. The customer collects the payment through a third party
Kangmingsheng, a Shenzhen Changfang Group Co.Ltd(300301) subsidiary, adopts the sales mode of combining dealers and traders. Domestic sales are mainly in the mode of dealers, most of whom are individuals, and there is a situation of third-party payment collection. Due to the influence of foreign exchange management policies, exchange rate fluctuations and other factors of the country where the overseas sales are located, there is a situation of third-party payment collection. The third-party collection amount involving domestic and overseas sales accounts for a high proportion of the amount of tax included income in this year. Due to the failure to obtain sufficient and appropriate audit evidence to prove the source of the third-party payment, we cannot judge the authenticity and rationality of the third-party payment. 5. Internal control failure
As stated in "confirmation of sales rebate and inventory management" in the matters that cannot be expressed in this report, it indicates that Shenzhen Changfang Group Co.Ltd(300301) has major defects in the management of subsidiaries, seal management, authority management, asset management and information system management. Due to the above-mentioned major defects, the company failed to maintain the effectiveness of internal control, and we are unable to judge the impact of relevant internal control defects on the financial statements.
(III) highlights
We remind users of the financial statements to pay attention, such as note Xi / (V) 13 to the financial statements According to the commitments of related parties, kangmingsheng has completed 80.83% of the promised performance from 2018 to 2020. As of the date of the audit report, the company has not made progress with the original 29 shareholders of kangmingsheng on performance commitment compensation. The contents of this paragraph shall not affect the issued audit opinion.
(III) highlights
We remind users of the financial statements to pay attention, such as note Xi / (V) 13 to the financial statements According to the commitments of related parties, kangmingsheng has completed 80.83% of the promised performance from 2018 to 2020. As of the date of the audit report, the company has not made progress with the original 29 shareholders of kangmingsheng on performance commitment compensation.
The contents of this paragraph shall not affect the issued audit opinion.
2、 Reasons and basis for issuing opinions that cannot be expressed
According to Article 7 of the auditing standards for Chinese certified public accountants No. 1502 - issuing unqualified opinions in audit reports, but in case of failure to obtain sufficient and appropriate audit evidence and to conclude that there is no material misstatement in the financial statements as a whole, the certified public accountant shall express unqualified opinions in the audit report. In addition, according to Article 10, if sufficient and appropriate audit evidence cannot be obtained as the basis for forming audit opinions, but it is considered that the undetected misstatement may have a significant and extensive impact on the financial statements, the certified public accountant shall express an opinion. We believe that the above matters may have a significant and extensive impact on the financial statements, so we issue an audit report that cannot express an opinion. 3、 It is impossible to express the impact of the matters involved in the audit opinion on the company's financial position, operating results and cash flow during the reporting period
At present, we are unable to judge the impact of the above matters on the financial position of your company as of December 31, 2021 and the operating results and cash flow of your company in 2021. 4、 Whether the matters involved in the audit report obviously violate the accounting standards and relevant normative provisions on information disclosure
We are unable to obtain sufficient and appropriate audit evidence to express our opinions on the basis of forming audit opinions; Without sufficient and appropriate audit evidence, we cannot judge whether it is in obvious violation of accounting standards for business enterprises, systems and relevant normative provisions on information disclosure.
This special instruction is issued by the exchange in accordance with the relevant provisions of the CSRC and shall not be used for other purposes. The consequences caused by improper use have nothing to do with the accounting firm and certified public accountant performing the business. Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
Xie Jiawei, Beijing, China Certified Public Accountant:
Owens April 29, 2002
