Audit report and financial statements of Ningbo Tianyi medical device Co., Ltd
From 2018 to June 2021
Ningbo Tianyi Medical Instrument Co., Ltd
Audit report and financial statements
(from January 1, 2018 to June 30, 2021)
Table of contents page
1、 Audit report 1-5 II. Financial statements
Consolidated balance sheet and parent company balance sheet 1-4 consolidated income statement and parent company income statement 5-6 consolidated cash flow statement and parent company cash flow statement 7-8 consolidated statement of changes in owner's equity and parent company statement of changes in owner's equity 9-16 financial statements attached Note 1-143
audit report
Xin Hui Shi Bao Zi [2021] No. za15383 all shareholders of Ningbo Tianyi medical device Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Ningbo Tianyi Medical Devices Co., Ltd. (hereinafter referred to as your company), including the consolidated and parent company's balance sheets as of December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, and the consolidated and parent company's income statements for 2018, 2019, 2020 and January June 2021 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 provisions of the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company's financial position as of December 31, 2018, December 31, 2019, December 31, 2020 and June 30, 2021, as well as the financial position of 2018, 2019 Operating results and cash flows of the merger and parent company in 2020 and from January to June 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 your 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
Key audit matters are the most important matters that we believe are the audit of financial statements for 2018, 2019, 2020 and January June 2021 according to 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.
The key audit matters identified in our audit are summarized as follows:
(I) revenue recognition
(II) impairment of accounts receivable and contract assets
(III) inventory falling price reserves
Key audit matters how to deal with them in the audit
(I) revenue recognition
Ningbo Tianyi medical device Co., Ltd. through the implementation of control test, we have verified that the company's economic interests related to the transaction are likely to flow into the enterprise, and the relevant income can be reliable, reasonable, consistent and effective, Measure and meet the recognition standards of business activities. On this basis, the relevant income is recognized when the income of important customers is recognized. From 2018 to 2021, the consolidated operating income of the company was 25821122026 yuan, 316 Pharmablock Sciences (Nanjing) Inc(300725) 90 yuan and the new income standard of 37887478739 yuan Impact on the recognition of the company's sales revenue. 17821654940 yuan. At the same time, we pay attention to the products. The confirmation of the actual sales revenue of our main customers mainly comes from the company's sales visits. Combined with various audit methods such as inquiry, observation and inspection, the scale of sales increases year by year, and whether the revenue confirmation is checked, we can understand the potential misstatement of the storage, sales and quality of goods recorded in the accounts within the appropriate financial statement period, Therefore, we take the sales revenue and the confirmation of the company's sales changes in the past three years as the key matters of this audit, and collect evidence and analyze the trend. Please refer to note V (XXXIV) to the consolidated financial statements.
(II) impairment of accounts receivable and contract assets
Ningbo Tianyi medical device Co., Ltd. analyzed the recoverability of accounts receivable up to 1880724453 yuan and 3788940001 yuan through aging analysis and customer credit. With the sales analysis and the growth of cash flow scale after the period of accounts receivable from 2018 to June 2021, and the detailed verification of the amount of accounts receivable balance, the contract industry comparable yuan, 2861464400 yuan The impairment policy of listed companies is 4045783395 yuan for the company. The receivables of contract assets 2020 and the impairment of contract assets are subject to prudent verification on December 31, 2012 and June 30, 2021.
The daily balance is 2397027 yuan and 14576663 yuan. If the accounts receivable and contract assets cannot be recovered on schedule or cannot be recovered and bad debts occur, it will have a significant impact on the financial statements. Therefore, we regard the impairment of accounts receivable and contract assets as the key matters of this audit. Please refer to notes V (III) and VII to the consolidated financial statements. (III) inventory falling price reserves
The validity period of medical devices of Ningbo Tianyi Medical Devices Co., Ltd. is basically two years from 2018 to June 2021.
Through the analysis of the expansion of the company's inventory effective operation scale and the price period and stock age of raw materials, and according to the fluctuation of the percentage, the inventory balance reaches the lower of the cost and net realizable value respectively, the inventory price of 3234290012 yuan and 5025837186 yuan is calculated. The net realizable value is RMB 4987940502 yuan and RMB 4574405420 yuan after deducting the estimated selling price of the goods. The book balance is high. If the inventory falling price occurs, the costs to be incurred and the estimated selling expenses will be determined after the financial use of the enterprise and relevant taxes and fees. The financial statements have a relatively significant impact, so we regard the provision for falling price of inventories as the key matter of this audit. Please refer to note V (VI) to the consolidated financial statements.
4、 Responsibilities of management and governance for financial statements
The management of your 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 assessing the sustainable operation ability of your company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless it plans to liquidate, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of your 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:
(I) 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.
(II) understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management's use of the going concern assumption. 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 the sustainable operation ability of your 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 cause your company to be unable to continue its business.
(V) evaluate the overall presentation (including disclosure), structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in your company to express audit opinions on the consolidated 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 (if applicable).
From the matters communicated with the governance layer, we determine which matters are most important for the audit of financial statements in 2018, 2019, 2020 and January June 2021, 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 Lixin certified public accountants: Bao Meiting
(special general partnership) (project partner)
Chinese certified public accountant: ye Yun
Shanghai, China August 21, 2001
(unless otherwise specified, the unit is RMB)
Note V assets 2021.6.30202012.31201912.31201812.31
Current assets:
Monetary capital (I) 2391123675618562718593107069456456981316332
Provision for settlement
Lending funds
Trading financial assets (II) 145270019360326546564064333
Financial assets measured at fair value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable (III) 3735782346260838251535751819111785573330
Receivables financing
Prepayment (IV) 13279677661095325977573590107253408951
receivable premium
accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables (V) Sunlour Pigment Co.Ltd(301036) 644499552129304913868 Sanchuan Wisdom Technology Co.Ltd(300066)
