audit report
Liaoning Heshi Ophthalmic Hospital Group Co., Ltd
Rong Cheng Shen Zi [2021] No. 110z0500
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 audit report 1-4
2 consolidated balance sheet 5-6
3 consolidated income statement 7
4 consolidated cash flow statement 8
5 consolidated statement of changes in owner’s equity 9-12
6 balance sheet of parent company 13-14
7. Income statement of the parent company 15
8 cash flow statement of parent company 16
9 statement of changes in owner’s equity of parent company 17 – 20 10 notes to financial statements 21 – 168
Rong Cheng Shen Zi [2021] No. 110z0500 audit report
All shareholders of Liaoning Heshi Ophthalmic Hospital Group Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Liaoning Heshi Ophthalmic Hospital Group Co., Ltd. (hereinafter referred to as “Heshi ophthalmic company” or “the company”), including the consolidated and parent company’s balance sheets on June 30, 2021, December 31, 2020, December 31, 2019 and December 31, 2018, January June 2021, 2020, 20192018 consolidated and parent company income statement, consolidated and parent company cash flow statement, consolidated and parent company statement of changes in owner’s equity and notes to relevant financial statements.
In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company’s financial position of he ophthalmology company as of June 30, 2021, December 31, 2020, December 31, 2019 and December 31, 2018, as well as the financial position of January June 2021, 2020, 2019 Operating results and cash flow of the merger and parent company in 2018.
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 he’s ophthalmology 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
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Key audit matters are the most important matters that we believe are the audit of the financial statements from January to June 2021, 2020, 2019 and 2018 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) revenue recognition
Relevant accounting periods: January June 2021, 2020, 2019 and 2018.
1. Item description
Refer to note iii.24 revenue recognition principles and measurement methods, and note V.29 operating revenue and operating costs of the financial statements. The operating revenue of he’s ophthalmology company from January to June 2021, 2020, 2019 and 2018 was 464.62 million yuan, 8384733 million yuan, 7455638 million yuan and 6137277 million yuan. Operating income is the main source of the company’s profits and has a significant impact on the financial statements. Therefore, we regard revenue recognition as a key audit matter.
2. Audit response
Our procedures for revenue recognition of Ho ophthalmology company mainly include:
(1) Ask the management and management of the company and evaluate the integrity and fraud risk of the management;
(2) Understand the company’s revenue recognition policies, evaluate whether the revenue recognition policies actually implemented by the company are appropriate, and review whether the relevant accounting policies are consistently implemented;
(3) Understand, test and evaluate the design and operation effectiveness of the company’s internal control related to sales and collection process;
(4) Carry out analytical review procedures according to the actual situation of the contract industry and the company, such as analyzing the income and gross profit margin in combination with the service type, and comparing with the companies in the same industry to judge the rationality of the change of sales income and gross profit margin;
(5) Check the supporting documents related to revenue recognition and review the authenticity and accuracy of revenue recognition and measurement, such as medical charge documents, medical insurance settlement documents, drug delivery records, sales invoices, customer sales confirmation documents, collection vouchers, etc;
(6) Check the consistency of hospital information management system, glasses business information management system and financial accounting data;
(7) Implement letter verification procedures for medical insurance and rural cooperative settlement units in various regions, and implement electricity 2 for patients and customers
Call back procedures to check whether the income is true and accurate;
(8) Select a sample of the revenue recognized before and after the balance sheet date, check the medical charge documents, drug delivery records, customer sales confirmation documents, collection vouchers, etc., and confirm whether the revenue is recorded in the appropriate accounting period. 4、 Responsibilities of management and governance for financial statements
The management of he ophthalmology company (hereinafter referred to as the management) is responsible for preparing the financial statements in accordance with the provisions of 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 continuing operation ability of Ho ophthalmology company, disclosing matters related to continuing operation, and using the assumption of continuing operation, unless the management plans to liquidate ho ophthalmology company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of he ophthalmology company.
5、 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 to design appropriate audit procedures.
(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 obtained audit 3
Evidence, and draw a conclusion on whether there is significant uncertainty in the matters or circumstances that may lead to major doubts about the sustainable operation ability of he ophthalmology 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 lead to the inability of Ho ophthalmology company 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 Ho ophthalmology company to express an audit 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 the management that we have complied with the professional ethics requirements related to independence, and communicate with the management all relationships and other matters that may reasonably be considered to affect our independence, as well as relevant preventive measures.
From the matters communicated with the management, we determine which matters are the most important for the audit of the current financial statements, thus constituting key audit matters. We describe these matters in the audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare cases, if the negative consequences of communicating a matter in the audit report are reasonably expected to exceed the benefits in the public interest, we determine that we should not communicate the matter in the audit report.
China certified public accountant of Rongcheng Certified Public Accountants (project partner):
(special general partnership)
Chinese certified public accountant:
Beijing, China Certified Public Accountant:
September 16, 2021
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Notes to financial statements of Liaoning Heshi Ophthalmic Hospital Group Co., Ltd
Liaoning Heshi Ophthalmic Hospital Group Co., Ltd
Notes to financial statements
The accounting period is from 2018 to January June 2021
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company
1. Company profile
Liaoning Heshi Ophthalmic Hospital Group Co., Ltd. (hereinafter referred to as “the company” or “the company”, formerly known as “Shenyang Shangshan Medical Instrument Co., Ltd”, “Liaoning Heshi ophthalmic hospital Co., Ltd.” and “Liaoning Heshi ophthalmic hospital Co., Ltd.”), is approved by Shenyang Administration for Industry and commerce, A limited company jointly invested and established by natural persons He Wei and he Xiangdong. The company was registered and established in Shenyang Administration for Industry and Commerce on October 15, 2009 and obtained the business license of enterprise legal person No. 2101340 Grandjoy Holdings Group Co.Ltd(000031) 28 (1-1). The unified social credit code of the company is 91210112ma0p432u8r. When the company was established, the registered capital was 1 million yuan, of which He Wei contributed 700000 yuan and he Xiangdong contributed 300000 yuan.
On August 29, 2011, according to the resolution of the shareholders’ meeting of the company, Shenyang Yinhai medical supplies Co., Ltd. increased the capital of the company by 3 million yuan. After the capital increase, the registered capital of the company was changed to 4 million yuan. On September 5, 2011, the company handled the industrial and commercial change registration in the administrative department for Industry and commerce.
On February 1, 2012, according to the resolution of the shareholders’ meeting of the company, Shenyang Yinhai medical supplies Co., Ltd. transferred all its equity of the company to Shenyang Heshi eye Industry Co., Ltd. the company handled the industrial and commercial change registration in the administrative authority for Industry and Commerce on February 21, 2012.
On October 25, 2015, according to the resolution of the shareholders’ meeting of the company, Shenyang Heshi eye Industry Group Co., Ltd. (formerly Shenyang Heshi eye Industry Co., Ltd.) transferred all its equity of the company to natural persons He Wei 1.3 million yuan, he Xiangdong 900000 yuan and Fu Lifang 800000 yuan respectively. At the same time, natural persons He Wei, he Xiangdong and Fu Lifang increased the capital of the company by 500000 yuan, 300000 yuan and 200000 yuan respectively. After the capital increase, the registered capital of the company was changed to 5 million yuan. On November 2, 2015, the company handled the industrial and commercial change registration with the administrative authority for Industry and commerce.
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Liaoning Heshi Ophthalmic Hospital Group Co., Ltd
