深纺织Ｂ(200045):2023年年度审计报告（英文版）
原标题:深纺织Ｂ:2023年年度审计报告（英文版） Shenzhen Textile (Holdings) Co., Ltd. Financial Statements and Auditor's Report For the year ended December 31,2023 Financial Statements and Auditor's Report For the year ended December 31,2023 Contents Auditor's Report Consolidated and Company Balance sheet Consolidated and Company Income statement Consolidated and Company cash flow statement Consolidated and Company Statement on Change in Owners’ Equity Notes to Financial statements Financial Statements and Auditor's Report For the year ended December 31,2023 Auditor’ s Report DeShiReport(Shen)Zi(24)No. P02833 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, 2023, 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, 2023 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. 1. Recognition of polarizer sales revenue As mentioned in Note (V) 40 to the financial statement, in 2023 the operating income reported in the consolidated financial statement of Shenzhen Textile Group was RMB3,079,678,375.45, of which the sales revenue of polarizers was RMB 2,885,625,542.77, accounting for 93.70% of the total operating income. The sales revenue of Shenzhen Textile Group's polarizer is recognized when the customer obtains control of the relevant goods. Due to the importance of polarizer sales revenue to the consolidated financial statement as a whole, and the revenue is one of the key performance indicators of Shenzhen Textile Group, there is an inherent risk that management will manipulate revenue recognition in order to achieve specific objectives or expectations, therefore, we have identified the recognition of polarizer sales revenue as a key audit matter for the audit of the consolidated financial statement. In response to the above key audit matter, the audit procedures we implement mainly include: Test and evaluate the internal control of the revenue-related business of Shenzhen Textile Group. Examine sales contracts with key customers, identify contractual terms and conditions related to the transfer of control of goods, and assess whether the accounting policies for revenue recognition comply with the requirements of accounting standards for business enterprises Perform revenue analysis procedures by production line, product type and customer, and analyze the rationality of revenue changes based on market and other factors. Samples are taken to perform detailed tests on sales revenue, check supporting documents such as invoices, outbound delivery orders, and receipts related to revenue recognition, and verify the sales of major customers by letter of confirmation and evaluate the authenticity of polarizer sales revenue recognition. Select samples of sales transactions before and after the balance sheet date, check the supporting documents such as invoices, outbound delivery orders, and receipts, and evaluate whether the revenue is recorded in the appropriate accounting period. 2. Impairment of polarizer inventory As mentioned in Note (V) 8 to the financial statement, as of December 31, 2023, the inventory book balance reported in the consolidated financial statement of Shenzhen Textile Group was RMB852,104,157.04, of which the book balance of polarizer inventory was RMB838,447,375.39 accounting for 98.40% of the total inventory, and the corresponding inventory decline reserve was RMB107,290,039.96. In accordance with the Group's accounting policy, inventories are measured at the lower of cost or net realizable value at the end of the year, and when the net realizable value of inventories is lower than cost, a provision is made for inventory price declines. As the provision for inventory declines involves significant management estimates, we have identified the impairment of polarizer inventories as a key audit matter in the audit of the consolidated financial statement. In response to the above key audit matter, the audit procedures we implement mainly include: Test and evaluate the design and implementation of internal controls related to inventory impairment; Implement inventory on-site monitoring procedures, check the check-count quantity of inventory on a sampling basis, and observe the status of inventory to evaluate the inventory quantity and condition at the balance sheet date; The management of the Company is responsible for the other information. The other information comprises information of the Company's annual report in 2023, 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. Deloitte Touche Tohmatsu CPA Ltd.(special general partnership) Chinese C.P.A. Consolidated balance sheet December 31,2023 Consolidated balance sheet
Consolidated balance sheet(Continued)
The notes are integral parts of the financial statements _____________________ ______________________ ______________________ Legal Representative: Person-in-charge of the accounting work：Person-in -charge of the accounting organ： Parent Company Balance Sheet
The notes are integral parts of the financial statements Consolidated Income statement
The notes are integral parts of the financial statements Income statement of the Parent Company In RMB
 |