Simulated consolidation and parent company financial statements of Chongqing construction industry (Group) Co., Ltd
Audit report
Zhongxinghua Certified Public Accountants (special general partnership)
ZHONGXINGHUA CERTIFIED PUBLIC ACCOUNTANTS LLP
Address: 20th floor, sohob tower, Lize, No. 20 Lize Road, Fengtai District, Beijing zip code: 100073 Tel: (010) 51423818 Fax: (010) 51423816
catalogue
1、 Audit report II. Attachment of audit report 1 Simulated consolidated balance sheet 2 Simulated consolidated income statement 3 Simulated consolidated cash flow statement 4 Simulated consolidated statement of changes in owner’s equity 5 Simulated parent company balance sheet 6 Simulated parent company income statement 7 Simulated cash flow statement of parent company 8 9. Statement of changes in owner’s equity of simulated parent company Note III to the simulated financial statements and Annex 1 to the audit report Copy of business license of zhongxinghua Certified Public Accountants (special general partnership) 2 Copy of practicing certificate of zhongxinghua Certified Public Accountants (special general partnership) 3 Copy of certified public accountant’s practice certificate
Beijing Institute of Certified Public Accountants
Business report unified coding reporting system
Unified code of business reporting: 1100016720217507073
Name of simulation report of Chongqing construction industry (Group) Co., Ltd.:
Audit report of consolidated and parent company’s financial statements
Report No.: zxhzzz (2022) No. 010357
Name of auditee: Chongqing construction industry (Group) Co., Ltd
Name of accounting firm: zhongxinghua accounting firm (special general partnership)
Business type: special audit
Report opinion type: unqualified opinion
Report date: May 23, 2022
Filing date: May 21, 2022
Zhang Wenxue (420003204575),
Signed by:
Zhang Zhen (110100100002)
(information can be queried by scanning QR code or logging into the official website of Beijing injection Association)
Note: this filing information only proves that the report has been filed with the Beijing Institute of certified public accountants, and does not mean that the Beijing Institute of Certified Public Accountants makes any form of guarantee for the content of the report in any sense.
Zhongxinghua Certified Public Accountants (special general partnership) Z ho N G x i n g h u a c e r t i f i e d p u b l i c a c o n t a n t s l p address: 20 / F, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, No. 20 Lize Road, Fengtai District, Beijing, Beijing PR China Tel (t e l): 0 1 0 – 5 1 4 2 3 8 1 8 fax (f a x): 0 1 0 – 5 1 4 2 3 8 1 6 Audit Report
Zhongxinghuazhuanzi (2022) No. 010357 Chongqing construction industry (Group) Co., Ltd.:
1、 Audit opinion
We have audited the simulated financial statements of Chongqing construction industry (Group) Co., Ltd. (hereinafter referred to as your company), including the simulated consolidated and simulated parent company’s balance sheets on December 31, 2020, December 31, 2021 and March 31, 2022, the simulated consolidated and simulated parent company’s income statement, simulated consolidated and simulated parent company’s cash flow statement in 2020, 2021 and January March 2022 Simulated consolidation and simulated statement of changes in owner’s equity of the parent company and notes to relevant financial statements.
In our opinion, the attached simulated financial statements are prepared on the basis described in Note 2 to the simulated financial statements in all material aspects, and fairly reflect the simulated consolidated and simulated financial position of the parent company as of December 31, 2020, December 31, 2021 and March 31, 2022, as well as the simulated consolidated and simulated operating results and cash flow of the parent company in 2020, 2021 and January March 2022.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The “responsibilities of certified public accountants for the audit of financial statements” in the audit report further expounds our responsibilities under these standards. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of your company and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
3、 Responsibilities of management and governance for financial statements
The management of your company (hereinafter referred to as the management) is responsible for preparing the simulated financial statements according to the preparation basis described in Note 2 to the simulated financial statements to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the simulated financial statements are free from material misstatement due to fraud or error.
When preparing the simulated financial statements, the management is responsible for assessing the company’s ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless it plans to liquidate, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of your company.
Zhongxinghua Certified Public Accountants (special general partnership)
4、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the simulated financial statements are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions.
Reasonable assurance is a high-level assurance, but it does not guarantee that the audit performed in accordance with the audit standards will always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the simulated financial statements based on the simulated financial statements, the misstatement is generally considered to be significant.
In the process of carrying out the audit work in accordance with the audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(I) identify and evaluate the risks of material misstatement of simulated financial statements caused by fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failing to find major misstatement caused by fraud is higher than that caused by error.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures. (IV) draw a conclusion on the appropriateness of the management’s use of the going concern assumption. At the same time, according to the audit evidence obtained, draw a conclusion on whether there are major uncertainties in the matters or circumstances that may lead to major doubts about the sustainable operation ability of your company. If we conclude that there is significant uncertainty, the auditing standards require us to draw the attention of statement users to the relevant disclosures in the financial statements in the audit report; If the disclosure is insufficient, we should express a non unqualified opinion. Our conclusions are based on the information available as of the date of the audit report. However, future events or circumstances may cause your company to be unable to continue its business.
(V) evaluate the overall presentation (including disclosure), structure and content of the simulated financial statements, and evaluate whether the simulated financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in your company to express audit opinions on the simulated consolidated financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
We communicated with the management on the planned audit scope, schedule and major audit findings, including the internal control defects that we identified in the audit.
Chongqing construction industry (Group) Co., Ltd
Notes to simulated financial statements
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company
1. Company profile
Chongqing construction industry (Group) Co., Ltd. (hereinafter referred to as “the company” or “the company”) is a newly established wholly state-owned company separated from the original construction industry (Group) Co., Ltd. in accordance with the requirements of [2003] No. 1039 document of the Commission of science, technology and Industry for national defense. It is invested and established by China Ordnance Equipment Group Co., Ltd. (hereinafter referred to as “Ordnance Group”). On December 28, 2005, he received the business license of enterprise legal person with the unified social credit code of 915 Shenzhen Quanxinhao Co.Ltd(000007) 842028302 from Chongqing Administration for Industry and commerce. His registered address is No. 1 Jianshe Avenue, Huaxi Industrial Park, Banan District, Chongqing, with the original registered capital of 120 million yuan. According to the decision on the merger of Chongqing construction industry (Group) Co., Ltd. and Chongqing Changfeng Machinery Co., Ltd. (bingzhuang Ji [2014] No. 364) of Ordnance Group, the company absorbed and merged Chongqing Changfeng Machinery Co., Ltd. (hereinafter referred to as “Chongqing Changfeng Machinery”), Chongqing Changfeng Machinery was cancelled, and the company fully completed the inheritance of all assets and liabilities of Chongqing Changfeng Machinery in January 2015, The registered capital of the company was changed to RMB 20115587666 on April 23, 2015, and the changed business license of enterprise legal person was obtained. The headquarters address of the company is Chongqing, and the legal representative is Che Lianfu.
2. Scope of simulated consolidated financial statements
See note VIII “equity in other entities” for relevant information of the company’s subsidiaries.
See note VII “change of consolidation scope” for the change of consolidation scope during the reporting period.
2、 Preparation basis of simulated financial statements
1. Preparation basis
On the basis of continuous operation, the company prepares simulated financial statements based on the actual transactions and events, and in accordance with the accounting standards for business enterprises – Basic Standards and various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions (hereinafter collectively referred to as “accounting standards for business enterprises”).
The simulated financial statements prepared by the company are prepared based on the following conditions:
(1) The company and its subsidiaries Sichuan Huaqing Machinery Co., Ltd., Chongqing Construction Transmission Technology Co., Ltd. and Chongqing changfengjiquan Machinery Co., Ltd. were stripped of some assets and liabilities through the resolution of the second board of directors of the sixth board of directors of the company. The stripped assets and liabilities mainly involve assets such as allocated land use rights and aboveground buildings that have nothing to do with the company’s main business and do not meet the conditions for being placed in a listed company Current liabilities and other liabilities are regarded as related assets and liabilities, which are stripped at the beginning of the period.
Related treatment of divested assets and liabilities: referring to the relevant provisions of “accounting treatment of free allocation of subsidiaries between wholly state-owned or wholly-owned enterprises” in the notice on printing and distributing the provisions on accounting treatment of relevant businesses of “three deletions, one reduction and one subsidy” (CK [2016] No. 17), when preparing individual financial statements, the units involved in asset and liability divestiture will reduce assets and liabilities according to the book value of divested assets and liabilities, The capital reserve (capital premium) shall be offset. If the capital reserve (capital premium) is insufficient, the surplus reserve and undistributed profit shall be offset in turn.
(2) Referring to the relevant provisions of listed companies, the company implemented the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 23 – transfer of financial assets, accounting standards for Business Enterprises No. 24 – hedge accounting and accounting standards for Business Enterprises No. 37 – presentation of financial instruments revised by the Ministry of Finance in 2017 in 2019; The accounting standards for Business Enterprises No. 14 – Revenue revised by the Ministry of Finance in 2017 will be implemented from January 1, 2020.
2. Going concern
The financial statements are prepared on the basis of going concern.
3、 Statement of compliance with accounting standards for business enterprises
The simulated financial statements meet the requirements of the accounting standards for business enterprises issued by the Ministry of Finance and the preparation basis described in Note 2, and are true and complete
