苏威孚Ｂ(200581):2022年年度审计报告（英文版）
原标题:苏威孚Ｂ:2022年年度审计报告（英文版） 总机：86（510）68798988 Tel：86（510）68798988 传真：86（510）68567788 Fax：86（510）68567788 电子信箱：[email protected] E-mail：[email protected] Auditor’s Report Su Gong W【2023】No. A853 To the Shareholders of Weifu High-Technology Group Co., Ltd.: I. Auditing opinions We have audited the financial statement under the name of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as WFHT), including the consolidated and parent Company’s balance sheet of 31 December 2022 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity for the year ended, and notes to the financial statements for the year ended. In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the Company and of its parent company as of 31 December 2022 and its operation results and cash flows for the year ended. II. Basis of opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of the auditor’s report. We are independent of the Company in accordance with the Certified Public Accountants of China’s Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion III. Highlighted paragraphs We remind users of financial statements to pay attention: As described in Note XIV-6 "Other important transactions and matters affecting investors' decisions", the security organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its "platform trade" business. At present, the case is in the investigation stage, and the outcome of the case is uncertain in the future. This paragraph does not affect the published audit opinion. 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. The key audit issues identified in our audit are as follows: (i) Accounting treatment of "platform trading" business and the related provision for expected credit losses 1. Matter description As described in Note XVI-7 "Other important transactions and matters affecting investors' decisions", the security organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its "platform trade" business. Based on the "platform trade" business’s background, transaction chain, sales and purchase contract signing, transaction process, physical flow and so on, the Company carefully analyzed and made comprehensive judgment, finds that the probability of this business not belonging to normal trade business is extremely high. In terms of accounting treatment, the Company follows the principle of substance over form and does not treat it as normal trade business, but according to the receipt and payment of funds，prudently recognize as claims and liabilities, respectively, purchases actually paid to "Suppliers" and sales collected from "Customers". In the financial statements, the "platform trade" business is net reported to other receivables in the form of the "platform trade" business portfolio, the amount is 2,741,499,100 yuan, for which an expected credit loss of 1,644,068,300 yuan has been charged. The "platform trade" business involved significant amounts of money and was at the stage of criminal investigation, the judgment of the nature of the business, accounting treatment and the provision of expected credit losses are related to management's use of significant accounting estimates and judgments and have a significant impact on the financial statements. Therefore, we identified the accounting treatment of the "platform trading" business and the provision of expected credit losses of portfolio claims of "platform trading" business as key audit matters. 2. The solution to the matter in auditing (1) Interview the management and relevant business personnel of WFTR to understand the business background, operation mode, contract signing method, pricing method, transaction and settlement process of its "platform trade" business; (2) Evaluate and test the internal controls of the "platform trade" business, evaluate the design of these controls, determine whether they are implemented, and test the operational effectiveness of the relevant internal controls; (3) Obtain the standing book of purchase and sales contract, inspect the purchase and sales contract, and verify the key terms of the subject matter, counterparty, contract price, delivery mode and so on involved in the purchase and sales contract, combine the contract signing time, pricing method, and interview records to further judge whether the relevant transaction has commercial substance; (4) Obtain the industrial and commercial information of "customers" and "suppliers" involved in the transaction process, check the business scope, registered address, equity structure, registered capital, personnel size, telephone number and other information of the counterparty to judge whether the business scope of the counterparty and its own scale match the transaction scale, check whether there is correlation or suspected correlation between the upstream "supplier" and the downstream "customer", and evaluate the business logic and rationality of the existence of the upstream "supplier" and the downstream "customer" in the transaction chain at the same time; (5) Obtain detailed accounts and accounting documents involved in the "platform trade" business, check the original documents related to accounting processing, including but not limited to purchase and sales contracts (orders, framework agreements), invoices, logistics documents, payment and payment bank documents, and ask relevant personnel about logistics documents, check their sources and ways of obtaining. Further judge whether there is real physical circulation in the transaction process; (6) Send letters to the "customer" and "supplier", confirm the "transaction amount" and "settlement balance" to the "customer" and "supplier", check the return letter, check the address of the return letter, the seal, the amount of the return letter and other information, and take further verification procedures for the return letter with doubts; (7) Visit the main "customers" and "suppliers", interview the transaction background, transaction content, contract signing, transaction mode, cargo logistics operation, capital settlement flow, whether there is a correlation between WFTR and the "customers" and "suppliers", verify the information formed in the transaction process with the "customers" and "suppliers". Verify the authenticity of the reply of "customer" and "supplier", and observe the business premises of "customer" and "supplier" to further judge whether the relevant transaction has commercial substance and commercial logic; (8) Evaluate the reasonableness of that the management considers that the business has a high probability of not having commercial substance and business logic and does not conduct accounting treatment and presentation as normal trade business according to the principle of substance over form based on the information obtained in the audit process; (9) In combination with related transaction audit procedures, check whether there are related relationships, related transactions and funds occupied by related parties in the "platform trade" business; (10) Obtain and check the supporting credentials for the actual collection of the "platform trade" business debt portfolio after the balance sheet date, visit the competent departments according to the sources from which the management makes estimates, and verify the authenticity and reliability of the sources; (11) Check the information related to the "platform trade" business has been properly reported and disclosed in the financial statements. (ii) Revenue recognition 1. Matter description As described in Note V-32 “Revenue” and Note VII-44 “Operation revenue and operation cost” carried in the financial statement, WFHT achieved an operation revenue of 12.730 billion yuan for year of 2022. As one of the biggest source of profits for WFHT, operating revenue has a significant effect on the general financial statement, in which there are certain of inherent risks existed for the reason that the management manipulate the timing of recognition so as to achieve specific objectives or anticipations. Therefore, we will take the Revenue recognition as the key auditing matter. 2. The solution to the matter in auditing (1) Understand the key internal controls related to revenue recognition, evaluate the design of these controls, determine whether they are implemented, and test the operational effectiveness of the relevant internal controls; (2) Review sales contracts to understand main contract terms or conditions and evaluate the appropriateness of revenue recognition methods; (3) Combining with status and data of the industry where WFHT is located, the Company should make a judgment on the rationality of fluctuation of the revenue composition; (4) The Company should carry out the procedure of account receivable and revenue letter of confirmation, and make a judgment on the rationality of the timing of revenue recognition; (5) Combining with the procedure of letter of confirmation, the Company should make a random inspection on sales contracts or orders, delivery lists, logistics bills, customs declaration, sales invoices, signing-off sheet and other documents related to revenue to verify the authenticity of revenue; (6) Referring to the recorded revenue before and after the Balance Sheet Date, the Company should select some samples and check out the supportive documents such as delivery lists, customs declaration and receipt forms to make a judgment on whether the income has been recorded at the appropriate accounting period. IV. Other information The management of WFHT is responsible for other information which includes the information covered in the Company’s 2021 annual report excluding the financial statement and our audit report. Our audit opinions on the financial statements do not cover other information, and we do not issue any form of authentication conclusions on other information. In combination with our audit of the financial statements, it is our responsibility to read other information and, in the process, consider whether there is material inconsistency or material misstatement between the other information and the financial statements or what we learned during the audit. Based on the work we have carried out, if we determine that there is a material misstatement of other information, we should report that fact and this regard we have noting to report. V. Responsibilities of management and those charged with governance for the financial statements The management is responsible for the preparation of the financial statements in accordance with the Accounting Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the internal control necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the 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 using the going concern assumption unless the 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. Responsibilities of the auditor for 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 audit report that includes our audit opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the CAS 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 the financial statements. As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional skepticism 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 audit 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, intentional 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 the management. (4) Conclude on the appropriateness of the management’s use of the going concern assumption and, 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 by the CAS to draw users’ attention in audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based on the information obtained up to the date of audit 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, 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 audit opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the governance with a statement of our compliance with the ethical requirements relating to our independence and communicate with the governance on all relationships and other matters that may reasonably be considered to affect our independence, as well we the relevant precautions (if applicable). 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 the 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 the auditor’s report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Jiangsu Gongzheng Tianye CPA Chinese CPA: Gu Zhi (Special General Partnership) (Engagement partner) Wuxi China Chinese CPA: Zhang Qianqian 26 April, 2023 II. Financial Statement Statement in Financial Notes are carried Unit: RMB/CNY 1. Consolidated Balance Sheet Prepared by Weifu High-Technology Group Co., Ltd. December 31, 2022 In RMB
Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 2. Balance Sheet of Parent Company In RMB
3. Consolidated Profit Statement In RMB
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