Guangdong Jiaying Pharmaceutical Co.Ltd(002198)
Consolidated and parent company financial statements in 2021
Audit report
Zhongxinghua Certified Public Accountants (special general partnership)
Zhongxinghuacitified publicaccountants LLP address: 20 / F, tower sohob, Lize, No. 20, Lize Road, Fengtai District, Beijing zip code: 100073 Tel: (010) 51423818 Fax: (010) 51423816
catalogue
1、 Audit report 1-5
2、 Audit report attached
1. Consolidated balance sheet 6-7
2. Consolidated income statement 8
3. Consolidated cash flow statement 9
4. Consolidated statement of changes in shareholders' equity 10-11
5. Balance sheet of parent company 12-13
6. Income statement of the parent company 14
7. Cash flow statement of the parent company 15
8. Statement of changes in shareholders' equity of the parent company 16-17
9. Notes to financial statements 18-83
3、 Annex 1 to the audit report Copy of business license of zhongxinghua Certified Public Accountants (special general partnership) 2 Copy of practicing certificate of zhongxinghua Certified Public Accountants (special general partnership) 3 Copy of certified public accountant's practice certificate
Zhongxinghua Certified Public Accountants (special general partnership) Z ho N G x i n g h u a c e r t i f i e d p u b l i c a c o u n t a n t s l p
Address (a d d d): F15, 15 / F, east block, Sichuan building east, No.1 Fu Wai Da Jie, Xicheng District, Beijing, China
Tel (t e l): 0 1 0 - 6 8 3 6 4 8 7 8 fax (f a x): 0 1 0 - 6 8 3 6 4 8 7 5 Audit Report
ZTE Huashen Zi (2022) No. 410011 Guangdong Jiaying Pharmaceutical Co.Ltd(002198) all shareholders:
1、 Audit opinion
We have audited the financial statements of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) (hereinafter referred to as " Guangdong Jiaying Pharmaceutical Co.Ltd(002198) "), including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in shareholders' equity and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the financial position of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) December 31, 2021 and the operating results and cash flow of the consolidated and parent company in 2021.
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 Guangdong Jiaying Pharmaceutical Co.Ltd(002198) , 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
The key audit matters are the most important matters that we consider to audit the current financial statements according to our professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of opinions. We will not express separate opinions on these matters. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) revenue recognition
1. Item description
Zhongxinghua Certified Public Accountants (special general partnership)
As shown in notes VI and 27 to the financial statements, in 2021, Guangdong Jiaying Pharmaceutical Co.Ltd(002198) consolidated financial statements had an operating income of 5747134 million yuan, mainly from the sales of Jiegu Qili tablet / capsule, Shuangliao Houfeng powder, chongganling tablet, Xiaoyan Lidan tablet, Jinju Wuhua tea and other products. Due to the importance of revenue recognition of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) and its significant impact on current profits, we have identified revenue recognition as a key audit event.
2. Audit response
(1) Understand and test the key internal control related to revenue recognition, and evaluate the effectiveness of internal control design and operation;
(2) Through sampling inspection of sales contracts, identify the contract terms related to the transfer of main risks and rewards of commodity ownership, and analyze and evaluate whether the revenue recognition policy complies with the provisions of the accounting standards for business enterprises;
(3) Carry out analytical review procedures and analyze the income and gross profit on a monthly basis and by major products to identify whether there are abnormal changes;
(4) Conduct a detailed test on the large transaction income recorded in this year, check the records of sales contract, invoice, delivery order, transportation order and receipt, and evaluate whether the relevant income recognition complies with the accounting standards for business enterprises and the accounting policies for income recognition in Guangdong Jiaying Pharmaceutical Co.Ltd(002198) ;
(5) Implement the letter confirmation procedure and select major customers to confirm the amount of revenue and the balance of accounts receivable in the current period;
(6) Implement the cut-off test procedure and check the revenue and supporting documents recognized before and after the balance sheet date to evaluate whether the revenue is recorded in the appropriate accounting period.
(II) provision for impairment of long-term equity investment
1. Item description
This year, Guangdong Jiaying Pharmaceutical Co.Ltd(002198) made a full provision for impairment of 287993 million yuan for Guangdong kangci Medical Development Co., Ltd. before the provision for impairment, the book balance of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) 's long-term equity investment in Guangdong kangci Medical Development Co., Ltd. accounted for 48.49% of the company's long-term equity investment balance at the end of the period, and the provision for asset impairment loss had a great impact on Guangdong Jiaying Pharmaceutical Co.Ltd(002198) this year's net profit. Therefore, we identified the provision for impairment of long-term equity investment as a key audit event.
2. Audit response
(1) Understand the operation of Guangdong kangci Medical Development Co., Ltd. and conduct on-site inspection;
(2) Understand the management of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) on Guangdong kangci Medical Development Co., Ltd;
(3) Review the relevant basis and approval process of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) for the full provision of impairment of Guangdong kangci Medical Development Co., Ltd.
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4、 Other information
Guangdong Jiaying Pharmaceutical Co.Ltd(002198) Management (hereinafter referred to as "management") is responsible for other information. Other information includes the information covered in the annual report of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) 2021, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information and consider whether other information is materially inconsistent with the financial statements or the information we have learned in the audit process, or there seems to be material misstatement.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
5、 Responsibilities of management and governance for financial statements
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 going concern ability of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Guangdong Jiaying Pharmaceutical Co.Ltd(002198) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Guangdong Jiaying Pharmaceutical Co.Ltd(002198) .
6、 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 auditing in accordance with the auditing standards, we used professional judgment and maintained 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. As fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, failure to
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The risk of finding material misstatement due to fraud is higher than that of failing to find material misstatement due to error.
(2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(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 audit evidence obtained, draw a conclusion on whether there are major uncertainties in the matters or circumstances that may lead to major doubts about Guangdong Jiaying Pharmaceutical Co.Ltd(002198) going concern ability. 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 cause Guangdong Jiaying Pharmaceutical Co.Ltd(002198) unable 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 Guangdong Jiaying Pharmaceutical Co.Ltd(002198) entity or business activities to express an opinion on the financial statements. We are responsible for guiding, supervising and executing the group audit. We are fully responsible for the audit opinion.
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 (if applicable).
We determine the most important matters in the financial statements through the audit. 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.
Consolidated balance sheet
December 31, 2021
Prepared by: Guangdong Jiaying Pharmaceutical Co.Ltd(002198) amount unit: RMB
Project notes closing balance opening balance closing balance of last year
Current assets:
Monetary capital VI. 1239384786161422364978714223649787
Settlement provisions lending funds trading financial assets derivative financial assets
Notes receivable
