Shenzhen Changfang Group Co.Ltd(300301)
audit report
Dhsz [2022] 0011571
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Shenzhen Changfang Group Co.Ltd(300301)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page I. audit report 1-4 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3 consolidated cash flow statement 4 consolidated statement of changes in shareholders' equity 5-6 parent company balance sheet 7-8 parent company income statement 9 parent company cash flow statement 10. Statement of changes in shareholders' equity of the parent company 11-12 notes to financial statements 1-97
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. Audit report
Dhsz [2022] 0011571 Shenzhen Changfang Group Co.Ltd(300301) all shareholders:
1、 Unable to express an opinion
We have audited the financial statements of Shenzhen Changfang Group Co.Ltd(300301) (hereinafter referred to as Shenzhen Changfang Group Co.Ltd(300301) ), 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 shareholders' equity and relevant notes to financial statements in 2021.
We do not express an audit opinion on the attached financial statements. Due to the importance of the matters described in the section "forming the basis for unable to express an opinion", we are unable to obtain sufficient and appropriate audit evidence as the basis for forming the audit opinion on the financial statements.
2、 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. Since the cost report cannot express opinions on the "recognition of sales rebate" in the event, we cannot judge whether the event has an impact on the amount of goodwill impairment at the beginning of the reporting period and the current period.
2. 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. 3. 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, with 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.
4. Confirmation of sales rebate
For example, in note 14 / (V) to the financial statements, on April 22, 2022, kangmingsheng, a Shenzhen Changfang Group Co.Ltd(300301) subsidiary, found that there were unrecorded sales rebates in its financial statements in 2021 through the company's self-examination. Due to the failure to obtain sufficient and appropriate audit evidence to prove the authenticity, integrity 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.
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 and the inventory management, sales and collection management and information system management of kangmingsheng company. 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.
3、 Highlight matters
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.
4、 Responsibilities of management and governance for financial statements
Shenzhen Changfang Group Co.Ltd(300301) the management of the company 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 due to fraud or error.
When preparing the financial statements, the management of Shenzhen Changfang Group Co.Ltd(300301) company is responsible for evaluating the sustainable operation ability of Shenzhen Changfang Group Co.Ltd(300301) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Shenzhen Changfang Group Co.Ltd(300301) company, terminate operation or have no other realistic choice.
The management is responsible for supervising the financial reporting process of Shenzhen Changfang Group Co.Ltd(300301) company.
5、 Responsibilities of certified public accountants for the audit of financial statements
Our responsibility is to audit the financial statements of Shenzhen Changfang Group Co.Ltd(300301) company 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.
According to the code of professional ethics for Chinese certified public accountants, we are independent of Shenzhen Changfang Group Co.Ltd(300301) company and have fulfilled other responsibilities in terms of professional ethics. (no text below)
(there is no text on this page, which is the signature and seal page of Dahua Shenzi [2022] 0011571 audit report) Dahua Certified Public Accountants (special general partnership) Chinese Certified Public Accountants:
(project partner) Xie Jiawei, Beijing, China Certified Public Accountant:
Owens April 29, 2002
Consolidated balance sheet
December 31, 2021
Prepared by: Shenzhen Changfang Group Co.Ltd(300301) (unless otherwise specified, the amount unit is RMB) asset note VI closing balance opening balance closing balance of last period current assets:
Notes to monetary funds 1211303416442403943673324039436733 trading financial assets derivative financial assets
Notes receivable note 2167923704543367479694336747969 notes receivable note 3498376943986060458534960604585349 accounts receivable financing
Prepayment note 428732 Harbin Gloria Pharmaceuticals Co.Ltd(002437) 4639176374639176 other receivables note 5145766900111750349871175034987 inventory Note 6193456444452013364889720133648897 non current assets due within one year of contract assets held for sale Movable assets
Notes to other current assets 7422744563469455276469455276 total current assets 94160651120111133548387111133548387 non current assets: debt investment other debt investment
Notes to long-term receivables 868970224218152647341815264734 long term equity investment other equity instruments investment other non current financial assets
Investment real estate note 975479543585512163165955121631659 fixed assets note 10530811937366384944398163849443981 construction in progress note 1129198840010317342751031734275 productive biological assets oil and gas assets use right assets
intangible assets
