Shanghai Fudan Microelectronics Group Co.Ltd(688385) audited financial statements for 2021
catalogue
Page audit report 1 – 6 audited financial statements
Consolidated balance sheet 7 – 8 consolidated income statement 9 – 10 consolidated statement of changes in shareholders’ equity 11
Consolidated cash flow statement 12 – 13 company balance sheet 14 – 15 company income statement 16
Statement of changes in shareholders’ equity 17
Cash flow statement of the company 18-19 notes to financial statements 20-119 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 1
1、 Basic information Shanghai Fudan Microelectronics Group Co.Ltd(688385) (“the company”) is a joint stock limited company registered in Shanghai, the people’s Republic of China, which was established on July 10, 1998. The A shares and H shares of RMB common stock issued by the company have been listed on the Shanghai Stock Exchange (“Shanghai Stock Exchange”) and the stock exchange of Hong Kong Limited (“Hong Kong Stock Exchange”) respectively. The registered address of the company is No. 220 Handan Road, Shanghai. The main business activities of the company and its subsidiaries (hereinafter collectively referred to as “the group”) are the design, development and sales of integrated circuit products; Integrated circuit product testing services. The financial statements have been approved by the board of directors of the company on March 18, 2022. The consolidation scope of the consolidated financial statements is determined on the basis of control. See note VI for the changes in this year. 2、 Preparation basis of financial statements the financial statements are prepared in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and the specific accounting standards, application guidelines, interpretations and other relevant provisions issued and revised later (collectively referred to as “accounting standards for business enterprises”). The financial statements are presented on a going concern basis. When preparing the financial statements, except for some financial instruments, the valuation principle is historical cost. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. In the past, the group has adopted Hong Kong Financial Reporting Standards to prepare financial statements for information disclosure on the stock exchange of Hong Kong Limited (“SEHK”). According to the consultation summary on the decision of mainland incorporated companies listed in Hong Kong to adopt mainland accounting standards and employ mainland accounting firms published by the Hong Kong Stock Exchange in December 2010, since the financial year, the group has decided to prepare financial statements in accordance with the accounting standards for business enterprises issued by the Ministry of finance of the people’s Republic of China and relevant regulations for information disclosure on the Hong Kong stock exchange. 3、 Important accounting policies and accounting estimates the group has formulated specific accounting policies and accounting estimates according to the actual production and operation characteristics, which are mainly reflected in the impairment of financial instruments, depreciation of fixed assets, amortization of intangible assets, capitalization conditions of internal development project expenditure, revenue recognition and measurement, etc. 1. In accordance with the statement of accounting standards for business enterprises, the financial statements comply with the requirements of accounting standards for business enterprises and truly and completely reflect the financial position of the company and the group as of December 31, 2021 and the operating results and cash flow of 2021. 2. The accounting period of the group is the Gregorian calendar year, i.e. from January 1 to December 31.
Notes to financial statements (Continued) III. important accounting policies and accounting estimates (Continued) 3 Bookkeeping base currency the bookkeeping base currency of the group and the currency used in the preparation of the financial statements are RMB. Unless otherwise specified, it is expressed in RMB. Subsidiaries and associated enterprises of the group determine their recording currency according to the main economic environment in which they operate, and convert it into RMB when preparing financial statements. 4. Consolidated financial statements the consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiary refers to the entity controlled by the company. When preparing the consolidated financial statements, the subsidiaries adopt the accounting year and accounting policy consistent with that of the company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions between companies within the group are fully offset at the time of consolidation. If the current loss shared by the minority shareholders of a subsidiary exceeds the share enjoyed by the minority shareholders in the opening shareholders’ equity of the subsidiary, the balance shall still be offset against the reduced shareholders’ equity. For subsidiaries acquired through business combination not under the same control, the operating results and cash flow of the acquiree shall be included in the consolidated financial statements from the date when the group obtains control until the group terminates its control. When preparing the consolidated financial statements, the financial statements of subsidiaries shall be adjusted on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date. For subsidiaries obtained through business combination under the same control, the operating results and cash flow of the combined party shall be included in the consolidated financial statements from the beginning of the current period. When preparing and comparing the consolidated financial statements, the relevant items of the previous financial statements are adjusted, which is regarded as the reporting entity formed after the merger has existed since the final controller began to implement control. If changes in relevant facts and circumstances lead to changes in one or more of the control elements, the group reassesses whether to control the investee. 5. Cash and cash equivalents refer to the group’s cash on hand and deposits that can be used for payment at any time; Cash equivalents refer to the short-term, highly liquid investments held by the group, which are easy to be converted into known amounts of cash and have little risk of value change.
Notes to financial statements (Continued) III. important accounting policies and accounting estimates (Continued) 6 Translation of foreign currency transactions and foreign currency statements the group converts the amount of foreign currency into the amount of functional currency for foreign currency transactions. When foreign currency transactions are initially recognized, the amount of foreign currency is converted into the amount of functional currency at the spot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The resulting differences in settlement and translation of monetary items are included in the current profits and losses, except for the differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which are treated in accordance with the principle of capitalization of borrowing costs. Foreign currency non monetary items measured at historical cost shall still be translated at the spot exchange rate on the transaction date without changing the amount in the functional currency. Foreign currency non monetary items measured at fair value are translated at the spot exchange rate on the date when the fair value is determined, and the resulting difference is included in the current profit and loss or other comprehensive income according to the nature of non monetary items. For overseas operations, the group converts its recording currency into RMB when preparing the financial statements: the assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date, and the shareholders’ equity items, except the “undistributed profit” item, are translated at the spot exchange rate at the time of occurrence; The income and expense items in the income statement are translated at the spot exchange rate of the transaction. The translation difference of foreign currency financial statements generated according to the above translation is recognized as other comprehensive income. When disposing of an overseas operation, other comprehensive income related to the overseas operation shall be transferred to the current profit and loss of the disposal, and part of the disposal shall be calculated according to the disposal proportion. Foreign currency cash flows and cash flows of overseas subsidiaries are translated at the spot exchange rate on the date of cash flow. The impact of exchange rate changes on cash is presented separately in the cash flow statement as a reconciliation item. 7. Financial instruments financial instruments refer to the contracts that form the financial assets of an enterprise and form the financial liabilities or equity instruments of other units. Recognition and derecognition of financial instruments the Group recognizes a financial asset or financial liability when it becomes a party to the financial instrument contract. If the following conditions are met, the recognition of financial assets (or part of financial assets, or part of a group of similar financial assets) shall be terminated, that is, they shall be written off from their accounts and balance sheets: (1) the right to receive the cash flow of financial assets expires; (2) Transferred the right to receive the cash flow of financial assets, or assumed the obligation to timely pay the full amount of the received cash flow to a third party under the “handling agreement”; And (a) substantially transferred almost all the risks and rewards of the ownership of the financial asset, or (b) abandoned the control of the financial asset although substantially neither transferred nor retained almost all the risks and rewards of the ownership of the financial asset.
If the liability for financial liabilities has been fulfilled, revoked or expired, the financial liabilities shall be derecognized. If the existing financial liabilities are replaced by another financial liability with substantially different terms by the same creditor, or the terms of the existing liabilities are substantially modified, such replacement or modification shall be treated as derecognition of the original liabilities and recognition of new liabilities, and the difference shall be included in the current profits and losses.
Notes to financial statements (Continued) III. important accounting policies and accounting estimates (Continued) 7 Financial instruments (Continued) recognition and derecognition of financial instruments (Continued) financial assets purchased and sold in a conventional way shall be recognized and derecognized according to the accounting on the trading day. Buying and selling financial assets by conventional means refers to receiving or delivering financial assets within the time limit specified by laws and regulations or common practices in accordance with the terms of the contract. Trading day refers to the date on which the group promises to buy or sell financial assets. Classification and measurement of financial assets the financial assets of the group are classified into: financial assets measured at fair value through profit or loss, financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income according to the business model of financial assets managed by the group and the contractual cash flow characteristics of financial assets at the time of initial recognition. When and only when the group changes the business model of managing financial assets, all affected relevant financial assets are reclassified. Financial assets are measured at fair value at the time of initial recognition, but if the accounts receivable or notes receivable arising from the sale of goods or the provision of services do not contain significant financing components or do not consider the financing components of no more than one year, the initial measurement shall be made according to the transaction price. For the financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other types of financial assets are included in their initial recognition amount. The subsequent measurement of financial assets depends on their classification: if the debt instrument investment financial assets measured at amortized cost meet the following conditions at the same time, they are classified as financial assets measured at amortized cost: the business model of managing the financial assets is to collect contract cash flow; The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. The interest income of such financial assets is recognized by the effective interest rate method, and the gains or losses arising from the derecognition, modification or impairment are included in the current profit and loss. For equity instrument investments measured at fair value with changes included in other comprehensive income, the group irrevocably chooses to designate some non tradable equity instrument investments as financial assets measured at fair value with changes included in other comprehensive income, only the relevant dividend income (except the dividend income explicitly recovered as part of the investment cost) is included in the current profit and loss, and the subsequent changes in fair value are included in other comprehensive income, No provision for impairment is required. When the recognition of financial assets is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings.
Notes to financial statements (Continued) III. important accounting policies and accounting estimates (Continued) 7 Financial instruments (Continued) classification and measurement of financial assets (Continued) financial assets measured at fair value with changes included in current profits and losses. The above financial assets other than those measured at amortized cost and those measured at fair value with changes included in other comprehensive income are classified as financial assets measured at fair value with changes included in current profits and losses. For such financial assets, the fair value is adopted for subsequent measurement, and all changes in fair value are included in the current profit and loss. After an enterprise designates a financial asset as a financial asset measured at fair value and the change of which is included in the current profit and loss at the time of initial recognition, it cannot be reclassified as other types of financial assets; Other types of financial assets cannot be re designated as financial assets measured at fair value and whose changes are included in the current profits and losses after initial recognition. Classification and measurement of financial liabilities the group’s financial liabilities are classified as: financial liabilities measured at fair value and whose changes are included in the current profit and loss and other financial liabilities at the time of initial recognition. For financial liabilities measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financial liabilities are included in their initial recognition amount. The subsequent measurement of financial liabilities depends on their classification: for other financial liabilities, the effective interest rate method is adopted for the subsequent measurement according to the amortized cost. Impairment of financial instruments: Based on expected credit losses, the group conducts impairment treatment on financial assets measured at amortized cost and recognizes loss reserves. For receivables without significant financing components, the group uses a simplified measurement method to measure the loss provision according to the amount equivalent to the expected credit loss in the whole duration. In addition to the above, simple
