深纺织Ｂ:2023年年度审计报告(英文版)

【摘要】ShenzhenTextile(Holdings)Co.,Ltd.FinancialStatementsandAuditor'sReportFortheyearendedDecember31,2023ContentsAuditor'sRep...

  Shenzhen Textile (Holdings) Co., Ltd.

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


                                                  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 accountin