深纺织Ｂ:2020年年度审计报告（英文版）
原标题:深纺织Ｂ:2020年年度审计报告（英文版） Shenzhen Textile (Holdings) Co., Ltd. Auditor’s Report Grant Thornton International Ltd（Special General Partnership） Table of contents Auditor’ s Report 3-7 Consolidated and Company Balance sheet 8-11 Consolidated and company Income statement 12-15 Consolidated and company Cash flow statement 16-18 Consolidated and company Statement on Change in Owners’Equity 19-23 Notes to financial statements 24-145 Grant Thornton International Ltd（Special General Partnership） 5/F, Scitech Plaza, 22 Jianguomenwai Street, Chaoyang District, Beijing Zip Code:100044 Tel：86-10 8566 5588 Fax：86-10085665120 www.grantthornton.cn Auditor’ s Report Zhi Tong Shen Zi（2021）No.441A002830 To all shareholders of Shenzhen Textile (Holdings) Co., Ltd： I. Opinion We have audited the financial statements of Shenzhen Textile (Holdings) Co., Ltd . (hereinafter referred to as "the Company"), which comprise the balance sheet as at December 31, 2020, and the income statement, the statement of cash flows and the statement of changes in owners' equity for the year then ended and notes to the financial statements. In our opinion, the attached financial statements are prepared, in all material respects, in accordance with Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at December 31, 2020 and its operating results and cash flows for the year then ended. II. Basis for Our Opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. III. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. (I) Recognition of revenue Please refer to Note III, 26 and Note V, 35 to the financial statement for details of the relevant information disclosure. 1.Description of matters The operating income of Shenzhen Textile in 2020 was RMB 2,108,964,700, of which the main business income was RMB 2,097,432,900, accounting for 99.45%. As revenue is one of the key performance indicators of Shenzhen Textile, there is inherent risk that the Company's management manipulates revenue recognition in order to achieve specific goals or expectations, and since the main business income is large, we identify revenue recognition as a key audit item. 2. Response to the audit For revenue recognition, we mainly implemented the following audit procedures: (1) Understand, evaluate and test the design effectiveness and operation effectiveness of internal control related to sales revenue cycle; (2) Obtain the main sales contracts according to the products and business types, check the relevant clauses related to revenue recognition, and interview the management to evaluate whether the revenue recognition meets the requirements of accounting standards; (3) Implement analytical procedures, compare the changes of income between this year and last year according to product types, observe the fluctuations of income between months and the changes of important customers in this period, and analyze the rationality of income changes based on factors such as the company's production capacity, market expansion and industry trends; (4) Perform detailed tests to check whether the basis related to sales revenue recognition is sufficient, including checking sales contracts or performing detailed tests, including checking sales contracts or orders, delivery orders, customs declarations and other supporting documents, evaluate the authenticity and accuracy of revenue recognition, and evaluate the authenticity and accuracy of revenue recognition; (5) Perform cut-off test to evaluate whether income is recorded in the proper accounting period; (6) Select samples from major customers on this recognition procedures, and perform alternative tests on the non-replied parts to judge the authenticity of sales revenue. (II) Inventory falling price reserves Please refer to Note III, 12 and Note V, 8 to the financial statement for details of the relevant information disclosure. 1.Description of matters As of December 31, 2020, the balance of inventory depreciation reserve of Shenzhen Textile is RMB 75,474,600. As the inventory depreciation reserve and its changes have a significant influence on the financial statements, the determination of the net realizable value of inventory involves the major judgment and estimation of the management, so we identify the inventory depreciation reserve as a key audit item. 2. Response to the audit The audit process implemented for inventory falling price reserves includes mainly: (1) Understand, evaluate and test the design and operation effectiveness of internal control related to inventory depreciation reserve; (2) Understand and evaluate the appropriateness of the Company's accrual policy for inventory depreciation reserve; (3) Understand and inquire about inventory storage location and inventory accounting method, and determine the scope of inventory supervision; Implement inventory supervision procedures to check whether the inventory is damaged, obsolete, outdated, defective, etc.; (4) Obtain the inventory year-end inventory age list, and carry out analytical review of inventory age according to the status of products to analyze whether the inventory depreciation reserve is reasonable; (5) Review and evaluate the rationality of the major estimates made by the management when determining the net realizable value; (6) Obtain the calculation table of inventory depreciation reserve, check whether the accrual of inventory depreciation reserve is implemented according to relevant accounting policies, and recalculate the inventory depreciation reserve; Check the changes of inventory depreciation accrued in previous years, evaluate the rationality of estimated selling price and estimated related taxes and fees as key parameters of net realizable value, review the sufficiency of basis of estimated selling price, and analyze the rationality of inventory depreciation reserve. IV. Other information The management of the Company is responsible for the other information. The other information comprises information of the Company's annual report in 2019, but excludes the financial statements and our auditor's report. Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard V. Responsibilities of Management and Those Charged with Governance for the Financial Statements The Company's management is responsible for preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors. In preparing the financial statements, management of the Company is responsible for assessing the Company's ability to continue as a going concern, disclosing matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. VI. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: (1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions, misrepresentations, or the override of internal control. (2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management of the Company. (4) Conclude on the appropriateness of using the going concern assumption by the management of the Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. (5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements and bear all liability for the opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit matters, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication Grant Thornton International Ltd.(Special General Partnership ） Chinese C.P.A.： Project Partner Chinese C.P.A.： Beijing China March 10,2021 Balance Sheet(Consolidated and Parent) December 31,2020 Prepared by: Shenzhen Textile (Holdings) Co., Ltd. In RMB Iterms Note V December 31,2020 December 31,2019 Consolidated Parent Consolidated Parent Current asset: Monetary fund （1） 279,087,236.95 113,560,327.21 409,564,847.52 27,979,338.37 Transactional financial assets （2） 684,617,260.06 514,277,000.82 830,000,000.00 650,000,000.00 Notes receivable （3） 16,813,657.28 40,424,601.97 Account receivable （4） 547,310,217.90 1,461,400.20 365,325,029.38 522,931.04 Financing of receivables （5） 102,051,314.08 17,933,597.98 Prepayments （6） 16,902,516.39 18,706.17 18,445,857.53 768,099.94 Other account receivable （7） 5,265,002.71 7,450,934.40 12,440,761.13 17,039,506.00 Incl：Interest receivable 7,610,043.19 7,329,228.31 Dividend receivable Inventories （8） 480,847,581.44 8,808.00 391,717,935.12 Assets held for sales Non-current asset due within 1 year Other current asset （9） 77,482,083.47 140,821,609.72 Total of current assets 2,210,376,870.28 636,777,176.80 2,226,674,240.35 696,309,875.35 Non-current assets: Debt investment Other investment on bonds Long-term receivable Long term share equity investment （10） 147,929,137.2 2,103,977,343 152,209,929.7 2,102,430,511 3 .32 2 .88 Other equity instruments investment （11） 190,607,427.54 177,142,433.45 248,781,946.73 206,816,952.64 Other non-current financial assets （12） 30,650,943.40 Property investment （13） 110,572,471.92 101,644,481.93 112,730,320.90 107,199,622.80 Fixed assets （14） 790,183,905.38 21,876,099.34 903,229,077.83 25,500,695.77 Construction in progress （15） 1,301,750,141.12 839,866,275.92 19,552.00 Production physical assets Oil & gas assets Intangible assets （16） 36,048,978.91 492,923.62 36,517,996.34 659,937.75 Development expenses Goodwill （17） Long-term expenses to be amortized （18） 2,876,561.53 2,692,750.67 800,858.17 Deferred income tax asset （19） 5,243,425.26 5,097,360.00 5,618,026.43 5,466,478.06 Other non-current asset （20） 143,307,689.66 96,871,196.43 3,079,321.10 Total of non-current assets 2,759,170,681.95 2,507,101,838.09 2,304,725,645.64 2,448,894,609.07 Total of assets 4,969,547,552.23 3,143,879,014.89 4,531,399,885.99 3,145,204,484.42 Legal Representative: Person-in-charge of the accounting work: Person-in -charge of the accounting organ: Balance Sheet(Consolidated and Parent)-continued December 31,2020 Prepared by: Shenzhen Textile (Holdings) Co., Ltd. In RMB Iterms Note V December 31,2020 December 31,2019 Consolidated Parent Consolidated Parent Current liabilities: Short-term loans Transactional financial liabilities Notes payable Account payable (21) 329,468,601.90 411,743.57 241,297,770.64 411,743.57 Advance receipts (22) 3,542,394.33 2,875,936.58 30,530,117.62 2,878,936.58 Contract liabilities (23) 279,631.27 Employees’ wage payable (24) 55,642,549.53 14,824,723.81 38,556,180.20 11,910,175.11 Tax payable (25) 12,198,522.02 11,497,591.21 22,545,550.33 20,801,961.18 Other account payable (26) 156,118,440.42 95,023,378.12 152,645,780.14 119,984,209.60 Incl:Interest payable Dividend payable Liabilities held for sales Non-current liability due within 1 year Other current liability Total of current liability 557,250,139.47 124,633,373.29 485,575,398.93 155,987,026.04 Non-current liabilities: Long-term loan (27) 343,100,174.35 Bond payable Long-term payable Expected liabilities Deferred income (28) 110,740,322.21 500,000.00 121,264,571.22 600,000.00 Deferred income tax liability (19) 59,141,666.58 56,150,418.06 69,944,345.66 66,953,097.14 Other non-current liabilities Total non-current liabilities 512,982,163.14 56,650,418.06 191,208,916.88 67,553,097.14 Total of liability 1,070,232,302.61 181,283,791.35 676,784,315.81 223,540,123.18 Owners' equity: (29) 507,772,279.00 507,772,279.00 509,338,429.00 509,338,429.00 Share capital (30) 1,967,514,358.53 1,583,307,509.86 1,974,922,248.03 1,589,869,499.36 Less：Shares in stock (31) 7,525,438.20 7,525,438.20 16,139,003.40 16,139,003.40 Other comprehensive income (32) 116,605,932.42 107,632,186.85 119,737,783.31 110,764,037.74 Special reserve Surplus reserves (33) 94,954,652.14 94,954,652.14 90,596,923.39 90,596,923.39 Retained profit (34) 86,912,390.50 676,454,033.89 49,307,764.03 637,234,475.15 Total of owner’s equity belong to the parent company 2,766,234,174.39 2,962,595,223.54 2,727,764,144.36 2,921,664,361.24 Minority shareholders’ equity 1,133,081,075.23 1,126,851,425.82 Total of owners' equity 3,899,315,249.62 2,962,595,223.54 3,854,615,570.18 2,921,664,361.24 Total of liabilities and owners’ equity 4,969,547,552.23 3,143,879,014.89 4,531,399,885.99 3,145,204,484.42 Legal Representative: Person-in-charge of the accounting work: Person-in -charge of the accounting organ: Income Statement(Consolidated and Parent) 2020 Prepared by: Shenzhen Textile (Holdings) Co., Ltd. In RMB Iterms Note V Year 2020 Year 2019 Consolidated Parent Consolidated Parent I. Income from the key business (35) 2,108,964,687.80 61,296,888.21 2,158,184,855.71 123,585,753.10 Less:Business income (35) 1,814,298,395.02 10,666,274.44 1,973,495,608.35 60,654,551.98 Business tax and surcharge (36) 7,347,125.65 2,435,257.11 8,466,143.40 3,088,345.17 Sales expense (37) 28,644,230.87 - 20,785,078.66 Administrative expense (38) 105,094,934.36 38,680,586.21 96,870,842.37 38,275,813.43 R & D expense (39) 67,160,964.22 - 53,178,714.33 Financial expenses (40) 8,287,888.28 -1,020,628.37 15,862,799.64 -2,114,743.82 Including：Interest expense 234,815.67 13,780.96 4,893,018.58 476,191.57 Interest income 3,702,735.59 1,012,329.64 8,593,894.58 2,611,348.37 Add：Other income (41) 29,506,252.69 117,006.72 27,547,902.92 106,720.83 Investment gain（“-”for loss） (42) 22,599,670.74 35,656,479.65 78,038,530.25 68,053,467.35 Including: investment gains from affiliates -3,446,613.86 -3,964,766.27 -7,404,083.27 -7,404,083.27 Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value (43) 2,687,518.74 392,767.12 Credit impairment loss (44) -10,394,533 -799,858.92 7,005,890.93 -194,490.83 .65 Impairment loss of assets (45) -72,412,477.63 -95,343.40 -97,172,532.71 Assets disposal income (46) 276,544.73 286,963.56 3,967.97 280.00 III. Operational profit（“-”for loss） 50,394,125.02 46,093,413.55 4,949,428.32 91,647,763.69 Add ：Non-operational income (47) 1,445,662.38 562,910.99 5,003,548.34 146,868.07 Less: Non-operating expense (48) 138,421.27 27,244.40 420,575.07 IV. Total profit(“-”for loss) 51,701,366.13 46,629,080.14 9,532,401.59 91,794,631.76 Less：Income tax expenses (49) 8,203,720.98 7,746,152.13 28,059,080.22 25,628,936.32 V. Net profit 43,497,645.15 38,882,928.01 -18,526,678.63 66,165,695.44 (I) Classification by business continuity 1.Net continuing operating profit 43,497,645.15 38,882,928.01 -18,526,678.63 66,165,695.44 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of parent company 37,267,995.74 38,882,928.01 19,679,910.43 66,165,695.44 2.Minority shareholders’ equity 6,229,649.41 -38,206,589.06 VI. Net after-tax of other comprehensive income -3,131,850.89 -3,131,850.89 -52,500,997.28 -52,500,997.28 Net of profit of other comprehensive income attributable to owners of the parent company -3,131,850.89 -3,131,850.89 -52,500,997.28 -52,500,997.28 (I) Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period -2,815,824.67 -2,815,824.67 -52,715,913.64 -52,715,913.64 1.Re-measurement of defined benefit plans of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. 3.Changes in the fair value of investments in other equity instruments -2,815,824.67 -2,815,824.67 -52,715,913.64 -52,715,913.64 4.Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will be reclassified into profit or loss -316,026.22 -316,026.22 214,916.36 214,916.36 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. 2.Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair value available for sale financial assets 4.Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 6.Allowance for credit impairments in investments in other debt obligations -316,026.22 -316,026.22 214,916.36 214,916.36 7. Reserve for cash flow hedges 8.Translation differences in currency financial statements 9.Other Net of profit of other comprehensive income attributable to Minority shareholders’ equity VII. Total comprehensive income 40,365,794.26 35,751,077.12 -71,027,675.91 13,664,698.16 Total comprehensive income attributable to the owner of the parent company 34,136,144.85 35,751,077.12 -32,821,086.85 13,664,698.16 Total comprehensive income attributable minority shareholders 6,229,649.41 -38,206,589.06 VIII. Earnings per share (I)Basic earnings per share 0.07 0.04 (II)Diluted earnings per share 0.07 0.04 Legal Representative: Person-in-charge of the accounting work: Person-in -charge of the accounting organ: Cash flow statement(Consolidated and Parent) 2020 Prepared by: Shenzhen Textile (Holdings) Co., Ltd. In RMB Iterms Note V Year 2020 Year 2019 Consolidated Parent Consolidated Parent I.Cash flows from operating activities: Cash received from sales of goods or rending of services 1,827,292,276.43 64,167,036.73 2,239,603,149.40 76,051,827.26 Tax returned 116,428,895.93 - 37,887,179.50 Other cash received from business operation (50) 123,408,000.43 6,524,378.62 61,696,291.74 16,144,244.57 Sub-total of cash inflow 2,067,129,172.79 70,691,415.35 2,339,186,620.64 92,196,071.83 Cash paid for purchasing of merchandise and services 1,742,576,211.51 4,462,365.49 1,664,396,359.07 5,479,277.51 Cash paid to staffs or paid for staffs 181,692,353.93 27,619,751.65 163,768,856.39 22,463,068.76 Taxes paid 43,712,017.07 34,788,061.46 31,514,698.29 20,712,126.49 Other cash paid for business activities (50) 97,217,657.52 8,944,859.88 96,360,918.39 25,827,850.33 Sub-total of cash outflow from business activities 2,065,198,240.03 75,815,038.48 1,956,040,832.14 74,482,323.09 Net cash generated from /used in operating activities 1,930,932.76 -5,123,623.13 383,145,788.50 17,713,748.74 II. Cash flow generated by investing: Cash received from investment retrieving 6,437,640.00 6,437,640.00 60,428,769.00 72,428,769.00 Cash received as investment gains 2,908,856.94 1,957,306.47 5,821,323.94 2,715,003.90 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets 2,800,914.39 2,759,267.00 298,580.00 34,500.00 Net cash received from disposal of subsidiaries or other operational - - units Other investment-related cash received (50) 3,240,861,003.37 1,623,459,188.57 4,164,457,418.70 1,448,303,833.93 Sub-total of cash inflow due to investment activities 3,253,008,414.70 1,634,613,402.04 4,231,006,091.64 1,523,482,106.83 Cash paid for construction of fixed assets, intangible assets and other long-term assets 564,014,103.94 2,528,077.97 618,799,656.48 10,991,096.71 Cash paid as investment - 3,555,968.96 Net cash received from subsidiaries and other operational units - - Other cash paid for investment activities (50) 3,008,065,275.20 1,530,015,275.20 4,556,430,000.00 1,580,000,000.00 Sub-total of cash outflow due to investment activities 3,572,079,379.14 1,536,099,322.13 5,175,229,656.48 1,590,991,096.71 Net cash flow generated by investment -319,070,964.44 98,514,079.91 -944,223,564.84 -67,508,989.88 III.Cash flow generated by financing: Cash received as investment gains Including: Cash received as investment from minor shareholders Cash received as loans 342,660,000.00 86,033,453.75 Other financing –related cash received (50) 6,545,900.00 203,775,154.17 3,806,454.17 Sub-total of cash inflow from financing activities 342,660,000.00 6,545,900.00 289,808,607.92 3,806,454.17 Cash to repay debts 536,552,100.76 Cash paid as dividend, profit, or interests 3,511,622.58 11,231.64 43,473,617.45 356,766.80 Including: Dividend and profit paid by subsidiaries to minor shareholders - （未完）  |