Audit report and financial statements of Shanghai aopumai Biotechnology Co., Ltd
2019 to 2021
Shanghai aopumai Biotechnology Co., Ltd
Audit report and financial statements
(from January 1, 2019 to December 31, 2021)
Table of contents page
1、 Audit report 1-4 II. Financial statements
Consolidated statement of cash flow and changes in owner's equity of parent company and consolidated statement of profit and loss of parent company
audit report
Xin Hui Shi Bao Zi [2022] No. za10093 all shareholders of Shanghai aopmai Biotechnology Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Shanghai aupmay Biotechnology Co., Ltd. (hereinafter referred to as aupmay), including the consolidated and parent company's balance sheets as of December 31, 2019, December 31, 2020 and December 31, 2021, the consolidated and parent company's income statements, consolidated and parent company's cash flow statements for 2019, 2020 and 2021 Consolidated and parent company's 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, 2019, December 31, 2020 and December 31, 2021, as well as the consolidated and parent company's operating results and cash flows in 2019, 2020 and 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 aupmay 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 financial statements of 2019, 2020 and 2021 respectively 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.
The key audit matters identified in our audit are summarized as follows:
Audit report page 1
(I) revenue recognition
Key audit matters how to deal with them in the audit
(I) revenue recognition oppmai is mainly engaged in the production and sales of culture medium and customized R & D and production services. 1. Understand and evaluate the management's relations related to revenue recognition (cdmo services). Domestic goods: the effectiveness of the design and operation of the company's internal control over the shipment and delivery of goods and the receipt of keys by customers; 2. After the goods are selected and signed, the revenue is recognized when the control of the goods has been transferred to the buyer; Take external samples to check the sales contract or order and identify the goods or sold goods: the company recognizes the revenue when the goods are shipped out of the warehouse and the customs declaration is completed, the control of the goods has been transferred, and the service control has been transferred. Cdmo business contract is divided into milestone contract and unit price contract. Whether the company's revenue recognition time point conforms to the enterprise accounting standard contract. Among them, the milestone contract mode usually has a long service cycle, which meets the requirements of the company; 3. Carry out analytical review procedures, ranging from several months to several years, but the service cycle of each milestone included in it is analyzed to judge the rationality of income change; 4. Yes, the report is short. The company and the customer clearly agreed on the service delivery content of each milestone and the sales revenue recorded during the completion period, selected samples of transactions, checked the conditions, and settled with the customer after completing the milestone. The service provision mode, revenue recognition time point and basis of the company for each sales contract or order, delivery order, transportation document and customer milestone are the same as those of the single contract or customs declaration, invoice, payment collection record and subsequent payment collection. If the terms of cdmo service contract agree that the above conditions are met, evaluate whether the relevant revenue recognition conforms to the accounting policy that each milestone in the company's revenue contract belongs to a separate performance obligation and is recognized at a certain point in time; 5. For the performance obligations recorded in the reporting period, the revenue shall be recognized after the completion of each specific service. Otherwise, the revenue shall be recognized at one time according to the amount agreed in the contract after the sample is selected in the whole cdmo service revenue transaction, the service of the technical service department is checked and accepted. Contract terms, customer acceptance confirmation data, invoice, payment return, single contract mode, deliver R & D results to customers after the completion of the project, and record the payment and payment collection after the period; 6. After the sample holder is selected and confirmed / signed by the customer, the revenue is recognized at one time. As the income is the confirmation procedure of aupmac; 7. As one of the key performance indicators recorded before and after the balance sheet date, there is an inherent risk that the management will manipulate the revenue recognition time point by selecting samples to check the delivery note, transportation note and expectation in order to achieve specific objectives or revenue transactions. We recognize the revenue confirmation of aupmay as a key audit matter.
To evaluate whether the income is recorded in the appropriate accounting period. For the income, please refer to the accounting policy and "v. items in the consolidated financial statements; 8. Field visits to important customers" (note 35) described in the notes to the financial statements "III. important accounting policies of the company and returns after the accounting inspection period to confirm the true estimation of income recognition" (XXIII).
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4、 Responsibilities of management and governance for financial statements
Oppmai's management (hereinafter referred to as the management) is responsible for preparing the financial statements in accordance with 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 due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the going concern ability of aupmay, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The governance layer is responsible for overseeing the financial reporting process of aupmay.
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) to identify and evaluate the risks of fraud and misstatement due to the audit procedures, and to fully deal with the risks caused by the audit. 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 aupmay. 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 result in the inability of aupmay to continue as a going concern.
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(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 aupmac entities or business activities to express an audit opinion 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 management, we determine which matters are most important for the audit of financial statements in 2019, 2020 and 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. Chinese Certified Public Accountants of Lixin certified public accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Chinese certified public accountant:
Shanghai, China February 18, 2002
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Note V assets 202112.31202012.31201912.31
Current assets:
Monetary capital (I) 31033955115309186495362651153558
Settlement provisions lending funds trading financial assets derivative financial assets
Notes receivable (II) 3150 China Tianying Inc(000035) 000000
Accounts receivable (III) 41748632553898366323712808401
Receivables financing
Prepayment (IV) 14767367418549462448631018
Premiums receivable reinsurance accounts receivable reinsurance contract reserves receivable
Other receivables (V) 2830079 Shenzhen Yuto Packaging Technology Co.Ltd(002831) 51043656678389
Purchase of resale financial assets
Inventory (VI) 337189079912538465891576731526
Contract assets held for sale assets
Non current assets due within one year (VII) 4017389040
Other current assets (VIII)
