Shanghai Hongda New Material Co.Ltd(002211)
Special note on the audit report of non-standard opinions in 2021
Lianda Certified Public Accountants (special general partnership) issued an audit report with non-standard opinions on the 2021 annual financial report of Shanghai Hongda New Material Co.Ltd(002211) (hereinafter referred to as "the company" or " Shanghai Hongda New Material Co.Ltd(002211) ). According to the relevant requirements of China Securities Regulatory Commission and Shenzhen Stock Exchange, the board of directors of the company explained the matters involved in the audit report as follows: I. contents of qualified opinions in the audit report (I) qualified accountants believe that:
1. Shanghai Hongda New Material Co.Ltd(002211) affiliated subsidiaries Shanghai Hongzhu Information Technology Co., Ltd. (hereinafter referred to as "Shanghai Hongzhu") and Shanghai GuanFeng Information Technology Co., Ltd. (hereinafter referred to as "Shanghai Guanfeng") introduced and led the private network communication business by Yang Xin, the former actual controller and chairman of the company. In August 2021, the company announced that Yang Xin lost contact and was suspected to be filed for investigation by Guilin Public Security Bureau. At present, the company's private network communication business has stalled, employees have resigned, key production equipment is being sold, and many litigation disputes have occurred with upstream and downstream customers. In 2021, the company made a large amount of expected credit loss and inventory falling price reserves for assets related to private network communication business. As the case involved by Yang Xin has not been closed, it is unclear whether the company has any responsibility in the case. We cannot judge whether the event has an impact on the current financial statements and the comparative data of the previous year.
2. Due to the covid-19 pneumonia epidemic, we failed to arrive at the Shanghai Hongda New Material Co.Ltd(002211) headquarters in Shanghai and the two subsidiaries of Shanghai Hongzhu and Shanghai Guanfeng to carry out on-site audit. Although we have carried out some remote audit procedures in accordance with the guidance of China Institute of Certified Public Accountants on Audit under covid-19 pneumonia epidemic, we have not fully completed the correspondence of bank deposits and accounts receivable, nor have we carried out key audit procedures such as on-site inventory of inventory and fixed assets and checking the authenticity and integrity of original bookkeeping vouchers, After deducting the part that can be confirmed through the implementation of remote audit procedures and alternative audit procedures, the total assets that failed to implement key audit procedures were 296748 million yuan, accounting for 5.74% of the total assets at the end of the period; The operating income is 172761 million yuan, accounting for 3.05% of the total operating income.
3. As mentioned in notes VI and 3 of the annual audit report in 2021, Shanghai Hongda New Material Co.Ltd(002211) for five accounts receivable related to private network communication business, such as Zhonghong Zhengyi Energy Holding Co., Ltd. and Jiangsu hongcui Development Co., Ltd., based on the expected credit loss of 7.3643 million yuan calculated and withdrawn according to the aging combination at the beginning of the period, the expected credit loss of 1195526 million yuan was fully withdrawn for the remaining part in 2021. We checked the operation status of these units by querying the public information, as well as the audit report, reply to the inquiry letter and the public information of the company in previous years. We failed to obtain sufficient and appropriate audit evidence on the rationality of the above full provision of expected credit loss and its impact on the company's financial status and operating results. (II) basis and reasons for issuing the qualified audit report. The accountant believes that:
After necessary analysis and full discussion of the above matters, it is impossible to obtain further audit evidence for the opening balance and comparative data of Shanghai Hongda New Material Co.Ltd(002211) 2021 annual report and the unfinished audit procedures, so as to reasonably determine its impact on Shanghai Hongda New Material Co.Ltd(002211) financial statements.
According to Article 8 of the auditing standards for Chinese certified public accountants No. 1502 - issuing unqualified opinions in audit reports: "certified public accountants shall express qualified opinions in case of any of the following circumstances: Certified Public Accountants cannot obtain sufficient and appropriate audit evidence as the basis for forming audit opinions, but believe that the undetected misstatement may have a significant impact on the financial statements, but it is not extensive." 。 We are unable to obtain further audit evidence for the opening balance and comparative data of Shanghai Hongda New Material Co.Ltd(002211) 2021 annual report and the unfinished audit procedures, so as to reasonably determine its impact on Shanghai Hongda New Material Co.Ltd(002211) financial statements. Therefore, we have issued a qualified audit report on the Shanghai Hongda New Material Co.Ltd(002211) financial statements. 2、 The contents of the highlighted paragraphs in the audit report (I) the contents of the highlighted paragraphs. The accountant believes that:
The CSRC is still concerned about the information disclosed in the financial statements No. 211 issued by the CSRC notice on the 12th day of 2021 and notice 2022 was still filed due to the issuance of the financial statements notice issued by the CSRC No. 211 on the 12th day of 2022, The opinions that have not been received by the CSRC or the opinions that have not been issued on the matters that have not been filed in this paragraph will not affect the audit conclusions. (II) reasons and basis for issuing paragraphs with emphasized matters. The accountant believes that:
According to Article 9 of the auditing standards for Chinese certified public accountants No. 1503 - adding emphasized matters and other matters to the audit report: if it is considered necessary to remind the users of the financial statements to pay attention to the matters that have been reported or disclosed in the financial statements and are considered to be important for the users of the financial statements to understand the financial statements according to professional judgment, when the following conditions are met at the same time, A certified public accountant shall add an emphasis paragraph to the audit report:
1. According to the provisions of auditing standards for Chinese certified public accountants No. 1502 - issuing unqualified opinions in audit reports, this matter will not lead to the issuance of unqualified opinions by certified public accountants;
2. When the auditing standards for Chinese certified public accountants No. 1504 - Communication of key audit matters in the audit report is applicable, the matter is not identified as the key audit matter communicated in the audit report.
The contents of the above paragraphs with emphasized matters comply with the relevant provisions of the auditing standards, but they are not matters that lead to qualified opinions. On the basis of qualified opinions, we remind the users of the statements to pay attention to Shanghai Hongda New Material Co.Ltd(002211) the major uncertainties related to the above pending litigation. 3、 The qualified opinion refers to the impact of relevant matters on the company's financial position, operating results and cash flow during the reporting period. The accountant believes that:
Since it is impossible to obtain further audit evidence for the opening balance and comparative data of Shanghai Hongda New Material Co.Ltd(002211) 2021 annual report and the unfinished audit procedures to reasonably determine its impact on Shanghai Hongda New Material Co.Ltd(002211) financial statements, it is impossible to determine the specific amount of the impact of the matters involved in the qualified opinion on Shanghai Hongda New Material Co.Ltd(002211) financial status and operating results in the reporting period. 4、 Notes of the board of directors on matters involved in the audit report with non-standard opinions
We believe that Lianda Certified Public Accountants (special general partnership) has issued an audit report with non-standard opinions based on relevant conditions and in the principle of strictness and prudence. We have no objection to the audit report.
We attach great importance to the impact of the matters involved in the non-standard opinions on the company's reporting period, will continue to pay attention to the progress of the above matters, timely fulfill the obligation of information disclosure in accordance with relevant regulations, and urge the company's management to actively promote relevant measures to safeguard the interests of the company and all shareholders. 5、 Opinions of independent directors on matters involved in the audit report
Based on the special opinions of the board of directors and the non professional auditors of the partnership company, we fully respect the special opinions of the board of directors on the audit matters of the partnership company in 2021. We will urge the board of directors and management of the company to continue to pay attention to the matters involved in the non-standard audit opinion, eliminate the impact of the matter on the company as soon as possible, timely perform the relevant information disclosure obligations, and effectively safeguard the interests of the company and all shareholders.
6、 Opinions of the board of supervisors on matters involved in the audit report
Lianda Certified Public Accountants (special general partnership) issued an audit report with non-standard opinions on the company's 2021 financial report based on the principle of strictness and prudence. We respect the professional opinions of accountants and agree with the special instructions of the board of directors on the audit report with non-standard opinions. The board of supervisors of the company will actively cooperate with the work of the board of directors of the company, continue to pay attention to the development of relevant work of the board of directors and management, and earnestly safeguard the legitimate rights and interests of the company and all shareholders. At the same time, the board of supervisors will actively urge the board of directors and management to implement specific measures to eliminate the impact of relevant matters, timely perform relevant information disclosure obligations, and effectively safeguard the legitimate rights and interests of listed companies and all investors. 7、 Specific measures to eliminate the matter and its impact
1. The company continued to strengthen the study and training of directors, supervisors, senior managers and all employees of the company on relevant laws, regulations and systems, improve the awareness of standardization and ensure the effective implementation of various rules and regulations.
2. The company continues to strengthen the improvement of the internal control evaluation mechanism, establish and improve the corporate governance structure, and strengthen the company's risk prevention ability.
3. In 2022, the company will further clarify the company's service and product positioning, strengthen market development, extend to the high-end of the industrial chain and value chain, and achieve high-quality development to meet the long-term development plan.
4. The company mainly adopts the mode of setting production by sales to reduce the company's inventory reserves, avoid the risk of asset impairment loss caused by product backlog or slow-moving, and through asset light operation, the company's overall production and operation flexibility is high and its anti risk ability is improved.
Board of directors of Shanghai Shanghai Hongda New Material Co.Ltd(002211) Material Co., Ltd. April 30, 2022
