Boya Bio-Pharmaceutical Group Co.Ltd(300294) audited financial statements for 2021
catalogue
Page I. audit report 1 - 6 II. Audited financial statements
Consolidated balance sheet 7 - 8 consolidated income statement 9 - 10 consolidated statement of changes in shareholders' equity 11 - 12 consolidated cash flow statement 13 - 14 company balance sheet 15 - 16 company Income statement 17
Statement of changes in shareholders' equity 18 - 19 cash flow statement 20 - 21 notes to financial statements 22 - 134 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 2
audit report
Ernst & Young Huaming (2022) Shen Zi No. 61755548a01 Boya Bio-Pharmaceutical Group Co.Ltd(300294) Boya Bio-Pharmaceutical Group Co.Ltd(300294) all shareholders:
1、 Audit opinion
We have audited the financial statements of Boya Bio-Pharmaceutical Group Co.Ltd(300294) Pharmaceutical Group Co., Ltd., including the consolidated and company's balance sheet on January 3 and February 1, 2021, the consolidated and company's income statement, statement of changes in shareholders' equity, cash flow statement and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements of Boya Bio-Pharmaceutical Group Co.Ltd(300294) are prepared in accordance with the accounting standards for business enterprises in all major aspects, and fairly reflect the consolidated and company's financial position as of December 31, 2021 and the consolidated and company's operating results and cash flow 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 Boya Bio-Pharmaceutical Group Co.Ltd(300294) Pharmaceutical Group Co., Ltd. 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 audit opinions. We will not express separate opinions on these matters. Our description of how to deal with each of the following matters in the audit is also against this background.
We have fulfilled the responsibilities described in the "responsibilities of certified public accountants for the audit of financial statements" section of this report, including those related to these key audit matters. Accordingly, our audit work includes the implementation of audit procedures designed to deal with the risk of material misstatement of the assessed financial statements. The results of our audit procedures, including the procedures for the following key audit matters, provide a basis for our overall audit opinion on the financial statements.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61755548a01 Boya Bio-Pharmaceutical Group Co.Ltd(300294) III. key audit matters (Continued)
Key audit matters: how to deal with this matter in the audit:
Goodwill impairment on December 31, 2021, the book value of goodwill in the consolidated financial statements of the group and our audit procedures for goodwill impairment test is RMB 664 million, mainly including RMB 100 million. According to the requirements of the accounting standards for business enterprises, the management (1) reviews the management of the asset group to which the goodwill belongs, and the management shall recognize the goodwill at least at the end of each year;
Impairment test. (2) Understand the situation of the third-party evaluation organization hired by the management, evaluate its independence, professional quality and the management believes that each acquired subsidiary is a competent company; (3) invite the internal evaluation expert team to review and manage the corresponding subsidiaries for impairment test. The method of the goodwill impairment test model and the evaluation process of the goodwill impairment test adopted by the management are complex, and the key assumptions, such as the discount rate and stable growth period, the management adopts the employment rate in order to test the goodwill impairment; Ask the third-party evaluation institution to help the goodwill impairment evaluation (4) evaluate the income during the future cash flow forecast period, determine the discount rate, growth rate and gross profit margin, grade the evaluation parameters with the historical situation, and analyze and compare the operation in the next few years; Assumptions of financial situation, including (5) the actual operating income growth rate and gross profit margin of relevant asset groups in the coming years.
As the results of goodwill have a significant proportion with the forecast data of previous years, and the evaluation of goodwill impairment involves the management, so as to evaluate the management's significant judgment on the recoverable cash flow, we make the prediction of goodwill impairment;
For key audit matters. (6) Review the calculation process of net present value of future cash flow;
The relevant disclosure of goodwill impairment in the notes to the consolidated financial statements of the group (7) comparing the book value of the asset group to which the goodwill belongs is included in notes III and 15 The difference between the asset and its recoverable amount is used to evaluate the management impairment, note III, 27 Significant accounting judgment and judgment on goodwill impairment;
Estimates and notes v. 18 Goodwill. (8) Carry out sensitivity test and Analysis on key assumptions used in goodwill impairment test;
(9) Review the impairment of goodwill in the financial statements and the adequacy of the disclosure of key assumptions adopted.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61755548a01 Boya Bio-Pharmaceutical Group Co.Ltd(300294) III. key audit matters (Continued) revenue recognition, measurement and disclosure in the consolidated financial statements of the group in 2021, the amount of operating revenue we performed on revenue recognition, measurement and disclosure is RMB 2.651 billion. The audit procedures mainly include:
Yuan. (1) Evaluate the effectiveness of the management's design and implementation of internal control over sales and collection, and test the internal control of sales and collection Boya Bio-Pharmaceutical Group Co.Ltd(300294) in process; After the product has been delivered and the customer signs for the product, the customer takes (2) obtain the main sales contract, check that the product has the relevant product control right, confirm the sales revenue, transfer of control right and other relevant contract terms, and review the current situation. Due to the significant amount of revenue, the revenue recognition management's judgment on the time point of revenue recognition; Whether it is true, whether the measurement is accurate, and whether the detailed test is carried out at the right time. (3) check whether there may be potential revenue recognition related to the entry of drug sales during the current financial statement period, including sales contract, invoice and misstatement. Therefore, we regard revenue recognition as a supporting document item including the key review of issue documents and sign in documents. To evaluate whether the revenue recognition complies with the accounting policies;
In the notes to the consolidated financial statements of the group, the analysis procedures for operating income (4) and income and cost are implemented. The relevant disclosures of the package are included in notes III and 19 Customers include: review the income and note V generated by the contract between major product payees in 2021 and 2020, monthly fluctuation trend of income, cost and gross profit margin, 41 operating income and cost. Inquire about the reasons for the change of management;
(5) Perform the cut-off test of operating income, select samples of drug sales revenue transactions in the days before and after the balance sheet date, and check the sales contract, delivery order, sales invoice, receipt and other supporting documents, To evaluate whether the income is recorded in the appropriate accounting period;
(6) Check whether there is any major sales return or sales price adjustment after the period, and understand the reasons for this matter. Review the calculation process of the return rate by the management;
(7) Review the adequacy and completeness of income disclosure in the financial statements.
Audit report (Continued)
Ernst & Young Huaming (2022) Shen Zi No. 61755548a01 Boya Bio-Pharmaceutical Group Co.Ltd(300294) IV. other information
Boya Bio-Pharmaceutical Group Co.Ltd(300294) management is responsible for other information. Other information includes the information covered in the annual report, 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.
