Beijing Compass Technology Development Co.Ltd(300803) year 2021
audit report
Zhitong Certified Public Accountants (special general partnership)
catalogue
Audit report 1-6
Consolidated and company balance sheet 1-2
Consolidated and corporate income statement 3
Consolidated and company cash flow statement 4
Consolidated and statement of changes in shareholders' equity 5-8
Notes to financial statements 9-81
Zhitong Certified Public Accountants (special general partnership)
22 Jianguomenwai street, Chaoyang District, Beijing, China
5th floor, set square, 100004
Tel. + 86 10 8566 5588
Fax + 86 10 8566 5120
www.grantthornton. cn.
audit report
Zhi Tong Shen Zi (2022) No. 110a000087 Beijing Compass Technology Development Co.Ltd(300803) all shareholders:
1、 Audit opinion
We have audited the financial statements of Beijing Compass Technology Development Co.Ltd(300803) (hereinafter referred to as Beijing Beijing Compass Technology Development Co.Ltd(300803) 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 and company's statement of changes in shareholders' equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects and fairly reflect the consolidated and financial position of Beijing Beijing Compass Technology Development Co.Ltd(300803) company as of December 31, 2021 and the consolidated and operating results and cash flow of the company in 2021.
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 Beijing Beijing Compass Technology Development Co.Ltd(300803) 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、 Key audit matters
The key audit matters are the most important matters that we consider to audit the current financial statements according to our professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We will not express separate opinions on these matters.
(I) recognition of financial information service revenue
See notes III, 24 and V, 31 of the financial statements for relevant information disclosure.
1. Item description
The income types of Beijing Beijing Compass Technology Development Co.Ltd(300803) company include financial information service income, advertising income and insurance brokerage income. The business income of financial information services in this period was 858611900 yuan, accounting for 92.08% of the total operating income of Beijing Beijing Compass Technology Development Co.Ltd(300803) company.
Beijing Beijing Compass Technology Development Co.Ltd(300803) company is mainly engaged in financial information service business, which takes the Internet as the platform, obtains free customers through online advertising, and provides financial data analysis and securities investment consulting services to investors after customer service personnel guide free customers to buy paid products. The financial information service business of Beijing Beijing Compass Technology Development Co.Ltd(300803) company is mainly for a large number of natural person customers. The customer's payment method and product use behavior are complex, and advance collection settlement is adopted. The customer's initialization fee and subsequent maintenance and operation fee with different service period are collected in advance at one time. Among them, the initialization fee is recognized as revenue at one time after the customer obtains authorization, The subsequent maintenance and operation fee shall be recognized in installments within the service period. This business relies on the control of the information system and generates financial data through the automatic interface of the information system. The income from financial information service business has a significant impact on the financial statements. There are inherent control risks and major misstatement risks that the management of Beijing Beijing Compass Technology Development Co.Ltd(300803) company (hereinafter referred to as the management) manipulates the revenue recognition in order to achieve specific goals or expectations. Therefore, we identify the authenticity and integrity of the income from financial information service business as key audit matters.
2. Audit response
Our audit procedures for this key audit matter mainly include:
(1) Understand and evaluate the effectiveness of the internal control design of Beijing Beijing Compass Technology Development Co.Ltd(300803) company related to financial information service revenue recognition and advertising, and test the effectiveness of the operation of key control processes.
(2) Select the sample of financial information service business, analyze and evaluate the time point of control transfer related to the recognition of financial information service business income, and then evaluate whether the recognition policy of financial information service business income is in line with the provisions of accounting standards for business enterprises and industry practices.
(3) Our information system testing team conducted general control test and application control test on the information system of Beijing Beijing Compass Technology Development Co.Ltd(300803) company, and conducted cut-off test on the income of financial information service business.
(4) Check the main partners, delivery channels, pricing mechanism and promotion methods of advertising business, and analyze whether the change reasons match the development trend of the industry; Implement substantive test procedures such as contract inspection, letter confirmation, capital flow verification and industrial and commercial information verification for major advertising suppliers, and check the online advertising products of Beijing Beijing Compass Technology Development Co.Ltd(300803) company through the network.
(5) The authenticity of the customer's identity information is verified by means of letter verification procedures for securities companies engaged in business cooperation with Beijing Beijing Compass Technology Development Co.Ltd(300803) .
(6) Compare the sales collection of financial information service business recorded in the book with the collection amount recorded in the bank account and the third-party payment platform to verify the authenticity of the flow of sales collection funds.
(7) get the name and ID number of employees of Beijing Beijing Compass Technology Development Co.Ltd(300803) company, and match the next single person and remittance of the financial information service business order, to check whether there is any self dealing situation by using the staff.
(II) share based payment
See Notes 3, 23 and 12 to the financial statements for relevant information disclosure.
1. Item description
Beijing Beijing Compass Technology Development Co.Ltd(300803) company implemented stock options and the second type of restricted stock incentive plan in 2021. Due to the implementation of the above equity incentive plan, the share based payment fee of 4.593 million yuan was recognized in the reporting period. Since the determination of the fair value of equity instruments on the grant date by share based payment involves the estimation and judgment of the management, and the number of equity instruments exercisable and the share based payment expenses to be recognized need to be continuously estimated by the management on each balance sheet date during the lock up period, we identify share based payment as a key audit event.
2. Audit response
Our audit procedures for share based payment mainly include:
(1) Understand and evaluate the rationality of internal control design related to the confirmation and measurement of share based payment, and test the effectiveness of key control operation.
(2) Checked the approved equity incentive plan and relevant resolutions of the board of directors and the general meeting of shareholders, and checked the relevant evidence of the implementation of the equity incentive plan.
(3) Checked the basis for the management to estimate the fair value on the grant date of the equity incentive plan, and evaluated the appropriateness of the valuation model selected by the management; Evaluate the rationality of key parameters (such as risk-free interest rate, historical fluctuation interest rate and dividend yield) and assumptions with reference to open market data; Check the basis of the management's estimation of the number of exercisable rights of the equity incentive plan on December 31, 2021, and evaluate the rationality of the management's estimation in combination with the performance appraisal requirements of Beijing Beijing Compass Technology Development Co.Ltd(300803) company level and individual level.
(4) Obtain the list of employees granted equity incentive, recalculate the expenses recognized by the equity incentive plan in 2021 according to the provisions of the equity incentive agreement, and check whether the relevant accounting treatment is correct.
(5) Checked whether the presentation and disclosure of the equity incentive plan and relevant accounting estimates by the management are sufficient and appropriate.
4、 Other information
The management of Beijing Beijing Compass Technology Development Co.Ltd(300803) company is responsible for other information. Other information includes the information covered in the 2021 annual report of Beijing Beijing Compass Technology Development Co.Ltd(300803) company, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information and consider whether other information is materially inconsistent with the financial statements or the information we have learned in the audit process, or there seems to be material misstatement.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
5、 Responsibilities of management and governance for financial statements
The management of Beijing Beijing Compass Technology Development Co.Ltd(300803) company is responsible for preparing the financial statements in accordance with 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 financial statements, the management is responsible for evaluating the going concern ability of Beijing Beijing Compass Technology Development Co.Ltd(300803) company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Beijing Beijing Compass Technology Development Co.Ltd(300803) company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Beijing Beijing Compass Technology Development Co.Ltd(300803) company.
6、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole 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 financial statements based on the 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:
(1) Identify and assess the risks of material misstatement of financial statements due to 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. (2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures. (4) Draw conclusions on the appropriateness of management's use of going concern assumptions. 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 going concern ability of Beijing Beijing Compass Technology Development Co.Ltd(300803) 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 Beijing Beijing Compass Technology Development Co.Ltd(300803) company to be unable to continue its business.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Beijing Beijing Compass Technology Development Co.Ltd(300803) company to express an opinion on the 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.
We also provide a statement to and communicate with the management that we have complied with the professional ethics requirements related to independence
