Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) 2021 consolidated financial statements and audit report
catalogue
Content page
audit report
Consolidated balance sheet 1-2 as of December 31, 2021
Balance sheet 3-4 of the company as of December 31, 2021
Consolidated income statement for 2021 5
Profit statement of the company in 2021 6
Consolidated cash flow statement for 2021 7
Cash flow statement of the company in 2021 8
Consolidated statement of changes in owner's equity in 2021 9-10
Statement of changes in owner's equity of the company in 202111-12
Notes to financial statements 13-147
Audit report
Zhong Shen Zi (2022) No. 04041 Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) all shareholders:
1、 Unable to express an opinion
We are entrusted to audit the financial statements of Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) (hereinafter referred to as "Yu diamond company" or "the company"), 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 statement of changes in owner's equity, statement of changes in owner's equity and notes to financial statements in 2021.
We do not express an audit opinion on the attached financial statements of Yu diamond company. Due to the importance and universality 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 expressing an audit opinion on the financial statements.
2、 Form a basis on which opinions cannot be expressed
(I) unable to obtain audit evidence related to the balance of the company's main assets
For example, note XII to the financial statements and other important matters (2) Disclosure: Yu diamond company was investigated by China Securities Regulatory Commission on suspicion of illegal information disclosure. In 2020, China Securities Regulatory Commission reported the investigation of information disclosure violation cases of Yu diamond company, and issued the prior notice of administrative punishment and market Prohibition (hereinafter referred to as the notice) on August 9, 2021. The alleged illegal facts disclosed in the notice are as follows:
1. From 2017 to 2019, the amount of falsely increased revenue and profit through various businesses is as follows:
Business type 20172018 2019 subtotal
Jewelry revenue 2255509145810825847202125490753134635846191
Jewelry revenue profit 265890881232712310564058121746335952042
Non jewelry income 881643274410413640598271733025121947403593
Non jewelry revenue profit 282742847724391944182944127295561035624
Profit from equity transfer 3176625180
2. By the end of 2019, the falsely increased inventories, fixed assets and non current assets are as follows:
December 31, 2019
Inflated inventory 62813325258
Inflated fixed assets 40645000000
Inflated other non current assets 82141813145
Total 185 China Cyts Tours Holding Co.Ltd(600138) 403
3. From 2016 to 2019, the original actual controller of Yu diamond company and its related parties formed non operating Occupied Funds of 13733179314 yuan, China Shenhua Energy Company Limited(601088) 15411 yuan, 216208525084 yuan and 26898082345 yuan respectively for the listed company, totaling 316948602154 yuan.
The original management of the company is unable to provide the composition details of non operating occupied funds and possible repayment details, and the company has not corrected the error of the opening balance on the suspected illegal facts mentioned in the above advance notice. Based on the close mutual confirmation relationship between the above matters, we are unable to check the amount involved in the suspected illegal facts with the company's financial book records. As the above matters involve multiple statement subjects and the amount is significant, they have a significant impact on the balance at the end of 2021 and are extensive. As of the date of issuance of the audit report, we were unable to obtain sufficient and appropriate audit evidence to judge the impact of the above suspected illegal facts on the main statement items in the consolidated and company's balance sheet of Yu diamond company on December 31, 2021, such as accounts receivable, other accounts receivable, inventory, fixed assets, construction in progress and other non current assets, including existence, integrity Recognition of multiple financial statements such as valuation and presentation.
(II) significant and wide-ranging uncertainties related to the ability to continue as a going concern
As of December 31, 2021, based on illegal guarantees and litigation matters, most bank accounts, land compensation receivable and interest receivable on financial products, operating land, office and production plants, machinery and equipment and foreign investment equity of Yu diamond company have been frozen and sealed up due to litigation matters, bank loans and financial leases have been overdue and seriously insolvent; The management of the company still prepares the financial statements of 2021 in accordance with the assumption of sustainable operation and records them in note XII to the financial statements and other important matters. 3 (1) Relevant measures to improve the ability to continue as a going concern have been disclosed, but we are still unable to obtain sufficient and appropriate audit evidence related to the realizability of the above-mentioned relevant measures. Therefore, we are unable to determine whether the financial statements prepared by Yu diamond company based on the assumption of going concern are fair.
(III) illegal external guarantee and litigation matters
As of December 31, 2021, as described in note x, commitments and contingencies to the financial statements, Yu diamond company has been involved in 92 lawsuits due to loans, illegal guarantees and other major commitments. Although we have great doubts about the integrity of the estimated liabilities accrued by Yu diamond company, we are unable to obtain sufficient and appropriate audit evidence to determine the integrity of the company's illegal external guarantee and litigation matters and the accuracy of the provision of estimated liabilities.
(IV) the impact of non unqualified opinions in previous annual audit reports has not been eliminated in the current period
The current situation of "account write off and asset impairment" and "related parties and related transactions" in the "basis for forming qualified opinions" paragraph of the 2019 audit report of Yu diamond company and the "impact of early-stage problems on financial statements" in the "basis for forming unqualified opinions" paragraph of the 2020 audit report are as follows:
As stated in note XIII (3) inventories and note V (11) fixed assets of the financial statements, the closing balance of the parent company of Yu diamond and other inventories is 1443068400 yuan, and the accumulated provision for falling price is 62878800 yuan; In the fixed assets of Yu diamond company, the original value of houses, buildings and machinery and equipment is 4088252800 yuan, and the accumulated depreciation is 1122769100 yuan. Only the accumulated impairment provision of machinery and equipment is 472011800 yuan. We are unable to obtain sufficient and appropriate audit evidence to determine the commercial rationality of the above previous transactions, the initial measurement amount and the accuracy of subsequent impairment provision.
As stated in note 12 to the financial statements and other important matters 3 (3), (4) and (7), the opening balance of the house purchase payment of the accelerator Industrial Park in advance was 2226048 million yuan, and 6.6909 million yuan was added in the current period. The court enforced the auction of real estate funds. In the current period, the physical handover or property right transfer procedures were not completed, and the company has transferred other receivables and fully accrued bad debt reserves; The prepaid equity transfer payment of 500 million yuan and the current arrears of Huajing precision of 1119511 million yuan have not been recovered in the current period, and the company has transferred into other receivables and made full provision for bad debts Bank Of Zhengzhou Co.Ltd(002936) Jinshui East Road sub branch deducted 223.39 million yuan, which has not been recovered in the current period. The company has transferred into other receivables and withdrawn bad debt reserves in full. We have doubts about the authenticity and commercial substance of the transactions forming the above assets, the accuracy of the provision of expected credit losses, and whether it constitutes the occupation of non operating funds. We are unable to obtain sufficient and appropriate audit evidence to determine the authenticity and commercial rationality of the transactions, the accuracy of the valuation of the above other receivables and bad debt reserves, and the fairness of the presentation of the financial statements.
As stated in note IX to the financial statements, related parties and related transactions, Yu diamond company has identified and disclosed related parties and related transactions, and we have implemented procedures such as inquiry, inspection, correspondence and interview, but we still can not eliminate our doubts about the identification of the relationship between related parties of the original management, and we can not obtain sufficient Appropriate audit evidence to determine the completeness and accuracy of the disclosure of related party relationships and related transactions by Yu diamond company.
The non unqualified matters disclosed in the above previous annual audit reports have not been eliminated, and the impact on the financial statements continues to the current period. We are unable to obtain sufficient and appropriate audit evidence to determine the impact of the above matters on the financial statements and corresponding data of the current period.
3、 Responsibilities of management and governance for the consolidated financial statements
The management of Yu diamond 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 caused by fraud or error.
When preparing the consolidated financial statements, the management is responsible for evaluating the sustainable operation ability of Yu diamond company, disclosing matters related to sustainable operation, and using the assumption of sustainable operation, unless the management plans to liquidate, terminate operation or has no other realistic choice.
The management layer is responsible for supervising the financial reporting process of Yu diamond company.
4、 Responsibilities of certified public accountants for the audit of consolidated financial statements
Our responsibility is to audit the consolidated financial statements of Yu diamond 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.
In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of Yu diamond company and have fulfilled other responsibilities in terms of professional ethics.
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Zhonghua Certified Public Accountants (special general partnership) Chinese certified public accountant (project partner) Yang Ge Chinese certified public accountant Zhong zhangkui, Shanghai, China, April 29, 2022
Zhengzhou Sino-Crystal Diamond Co.Ltd(300064)
Consolidated balance sheet as of December 31, 2021
(amount in RMB)
Project notes current assets as of December 31, 2021 and 2020:
Monetary capital v. 11041547076716102990410 settlement provision
Lending funds
Trading financial assets
Financial assets measured at fair value through profit or loss
Derivative financial assets
Notes receivable
