audit report
Zhong Huan Shen Zi [2022] No. 1710029 Honz Pharmaceutical Co.Ltd(300086) all shareholders:
1、 Audit opinion
We have audited the financial statements of Honz Pharmaceutical Co.Ltd(300086) (hereinafter referred to as " Honz Pharmaceutical Co.Ltd(300086) "), including the consolidated and company's balance sheet as of December 31, 2021, the consolidated and company's income statement, consolidated and company's cash flow statement, consolidated and 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 Honz Pharmaceutical Co.Ltd(300086) the consolidated and the company as of December 31, 2021, as well as the operating results and cash flow of the consolidated and the 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 Honz Pharmaceutical Co.Ltd(300086) , 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. We confirm that the following matters are the key audit matters that need to be communicated in the audit report.
(I) revenue recognition
Key audit matters how to deal with them in the audit
1. Understand, evaluate and test the effectiveness of the company's internal control design and operation related to sales and collection;
2. View the sales contract, and identify the relevant issues related to the transfer of control in combination with the contract terms
Key audit matters how to deal with them in the audit
The company's sales revenue mainly refers to the terms and conditions of the sales contract, and evaluates whether the time point and basis of revenue recognition meet the requirements of various children's drugs and adult drugs of the enterprise; Relevant provisions of the accounting standards of the parent company of sales; Baby health products, etc. Business receipts in 2021 3. Select samples and check the sales contract, entry records and customer signing records. The entry is 83656580556 yuan and relevant letters to evaluate whether the revenue recognition is consistent with the company's revenue recognition policies; Please refer to note VI, 3 "7 business 4. Perform analysis procedures for income and cost, including monthly business income and operating cost according to product category". Analyze the fluctuation of income, cost and gross profit margin of the company's longitude, and the business categories are diverse compared with those in the previous period, because the operating income is relatively high; The company's key performance indicators include: 5. For the revenue recognized before and after the balance sheet date, select a sample, check with the relevant sales management level in order to achieve specific objectives or the original documents such as the term sales contract and customer acceptance documents, and check the solid transportation record of manipulating the revenue recognition amount in order to evaluate whether the sales revenue is recognized in the appropriate accounting period; There are risks. Therefore, we will confirm the authenticity and accuracy of the balance and transaction amount by selecting samples according to the characteristics and nature of the customer's transaction, so as to evaluate the authenticity of the balance of accounts receivable and the amount of sales revenue; Key audit matters.
7. Evaluate whether the disclosure in the financial statements meets the requirements of the accounting standards for business enterprises.
(II) recognition of investment income
Key audit matters how to deal with them in the audit
1. Evaluate and test the effectiveness of key internal control design and operation related to investment by the management;
2. Interview the company's management to understand the background of equity transfer, whether the transfer is true, whether there are other agreements and whether it constitutes a package deal;
3 Ning Xia Yin Xing Energy Co.Ltd(000862) 021 consolidated finance 3. Understand the way of equity sale, check the resolution statements of the general meeting of shareholders related to the disposal of equity, confirm the investment income, etc., and judge whether the relevant decision-making procedures are appropriate;
5567602400 yuan, mainly due to disposal 4. Check the equity transfer contract, identify the key terms of the investment income generated by long-term equity investment such as equity transfer payment and equity transfer, which affect the accounting treatment, and benefit from the resolutions of the general meeting of shareholders and other relevant information. See the attached Bank of the financial statement for relevant information; Note VI. 44 "investment income". 5. As we checked the receipt certificate of the equity transfer payment, confirmed the recovery, and reported to the transferee that the amount of investment income was significant, we confirmed by letter; Confirm the confirmation of investment income as closing 6, check the equity transfer procedures and other relevant documents, and judge the time key audit matters for the realization of equity transfer. Evaluate whether the disposal income of long-term equity investment is recognized in an appropriate period;
7. Review the calculation process of the company's equity transfer investment income to check whether the calculation of investment income is accurate.
8. Check whether the investment income generated from the disposal of long-term equity investment has been properly presented in the financial statements.
4、 Other information
Honz Pharmaceutical Co.Ltd(300086) management is responsible for other information. Other information includes the information covered in the annual report of 3 Ning Xia Yin Xing Energy Co.Ltd(000862) 021, 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
Honz Pharmaceutical Co.Ltd(300086) Management (hereinafter referred to as 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 Honz Pharmaceutical Co.Ltd(300086) and disclosing the matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Honz Pharmaceutical Co.Ltd(300086) , terminate the operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Honz Pharmaceutical Co.Ltd(300086) .
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 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 to design appropriate audit procedures.
(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 Honz Pharmaceutical Co.Ltd(300086) sustainable operation 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 Honz Pharmaceutical Co.Ltd(300086) unable to continue to operate.
(V) evaluate the overall presentation, 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 Honz Pharmaceutical Co.Ltd(300086) in order 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).
From the matters communicated with the management, we determine which matters are the most important for the audit of the current financial statements, 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.
(no text below)
(this page is the seal page of 3 Ning Xia Yin Xing Energy Co.Ltd(000862) 021 annual audit report)
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner):
Li Hui, Chinese certified public accountant:
Jiang Wenqing, Wuhan, China, April 6, 2002
Honz Pharmaceutical Co.Ltd(300086)
Notes to financial statements of 2021
1、 Basic information of the company
Honz Pharmaceutical Co.Ltd(300086) (hereinafter referred to as "the company" or "the company") was incorporated on January 20, 1994. The registered address of the company is No. 6, Yaogu Third Road, Yaogu Industrial Park, Haikou national high tech Industrial Development Zone. The current headquarters is located at No. 6, Yaogu Third Road, Yaogu Industrial Park, Haikou national high tech Industrial Development Zone and on the 26th floor of Guangzhou Dongshan Plaza. The company and its subsidiaries (hereinafter collectively referred to as "the group") are mainly engaged in the production or sales of powder injections (cephalosporins), freeze-dried powder injections, tablets, capsules, granules, dry suspensions and powders; Produce and sell maternal and infant health products; Product research and development and technical services; Sales of medical devices, etc.
The parent company of the company is Hainan Hongshi Investment Co., Ltd., and the ultimate controller of Hainan Hongshi Investment Co., Ltd. is the natural person Hongjiang tour.
The financial report was approved by the 23rd Meeting of the 5th board of directors of the company on April 6, 2022.
As of December 31, 2021, the group has 16 subsidiaries included in the scope of consolidation. See note VIII "equity in other entities" for details. The consolidation scope of the group this year decreased by 9 over the previous year. See note VII "change of consolidation scope" for details.
2、 Preparation basis of financial statements
The financial statements of the group are based on the assumption of going concern, according to the actual transactions and events, and in accordance with the accounting standards for business enterprises - Basic Standards (issued by order No. 33 of the Ministry of Finance and revised by order No. 76 of the Ministry of Finance), 41 specific accounting standards, application guidelines of accounting standards for business enterprises issued and revised on and after February 15, 2006 The interpretation of the accounting standards for business enterprises and other relevant provisions (hereinafter collectively referred to as the "accounting standards for business enterprises") and the preparation of the disclosure provisions of the rules for the preparation of information disclosure of companies offering securities to the public No. 15 - General Provisions on financial reports (revised in 2014) of the China Securities Regulatory Commission.
According to the relevant provisions of the accounting standards for business enterprises, the accounting of the group is based on the accrual basis. Except for some financial instruments and investment real estate, the financial statements are measured on the basis of historical cost. Non current assets held for sale shall be recognized at fair value less estimated expenses
