Betta Pharmaceuticals Co.Ltd(300558) audit report and financial statements for the year 2021
Betta Pharmaceuticals Co.Ltd(300558)
Audit report and financial statements
(from January 1, 2021 to December 31, 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 9-12 notes to financial statements 1-121
Audit report
Shareholder's Letter No. [0203] ÊÊÊÊÊ
1、 Audit opinion
We have audited the financial statements of Betta Pharmaceuticals Co.Ltd(300558) (hereinafter referred to as Betta Pharmaceuticals Co.Ltd(300558) ), including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in owner's 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 Betta Pharmaceuticals Co.Ltd(300558) the consolidated and parent company as of December 31, 2021 and the operating results and cash flow of the consolidated and parent 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 Betta Pharmaceuticals Co.Ltd(300558) , 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) revenue recognition
For details of accounting policies for revenue recognition and analysis of revenue, please refer to our audit procedures for evaluating revenue recognition, including:
Read the accounting policies and "v. principles" described in the note (XXVI) to the consolidated financial statements "III. important accounting policies and accounting 1. Understand and evaluate whether the design of the management's key internal control on revenue recognition is in line with the estimation", and test the operation effectiveness of internal control;
Notes to "notes to items of consolidated financial statements" (XXXVII). Beida pharmaceutical 2. Sample the contracts signed between the company and important customers, identify the relevant business of receiving and returning goods, and relevant terms and conditions when transferring the control related to drug ownership to customers, and evaluate the company's revenue recognition policy according to the current accounting standards;
Recognize sales revenue. The specific time point of revenue recognition is different due to the difference between the specific sales records before and after the end of the year and the specific terms and conditions of the sales contract including the shipping order and freight contract by sampling, so as to evaluate whether the revenue is based on the corresponding sales contract. The terms in the same are recognized in the appropriate accounting period;
We regard revenue recognition as a key audit item because revenue is 4. Spot check the original documents related to sales (including sales contract, delivery order, key performance indicators of signed Betta Pharmaceuticals Co.Ltd(300558) and possible receipts at the time of revenue recognition), and check the authenticity of sales revenue and the accuracy of sales records;
Human manipulation to achieve performance objectives or expectations; Secondly, 5. Confirm the sales realized by the main customers in the current period and the accounts receivable at the end of the period.
The terms of sale may affect the time point of revenue recognition. (II) impairment of goodwill
For details of accounting policies and analysis of goodwill impairment, please refer to the consolidated audit procedures related to goodwill impairment, including:
Notes to the financial statements "III. important accounting policies and accounting estimates" note 1. We evaluated and tested the design and implementation of internal control related to goodwill impairment test. The accounting policies and "v. the effectiveness of consolidated financial statements, including the adoption of key assumptions and the review and approval of impairment provision amount;
Notes to "project notes" (XVII). 2. Evaluate the competence, professional quality and objectivity of external valuation experts appointed by the management
December 31, 2021, Betta Pharmaceuticals Co.Ltd(300558) consolidated;
The book value of goodwill in the financial statements is RMB 3. By referring to the industry practice, the estimated value of 41358400009 yuan used by the management in the cash flow forecast is evaluated. The above goodwill is mainly due to the appropriateness of the acquisition of kanangi medical value method;
Pharmaceutical Technology (Shanghai) Co., Ltd. Due to the importance of goodwill to the consolidation 4. By comparing the project R & D and commercial operation period, revenue growth rate, sustainable growth rate and the importance of financial statements, and determining whether the increase of impairment cost and other key input values should be accrued with the management budget, forecast and Industry Report, the prudent evaluation involves significant management judgment and estimation, In particular, the key assumptions and judgments adopted in the unprepared discounted cash flow forecast;
In terms of cash flow in the coming years, including the predicted income, long-term average growth 5, recalculating the discount rate based on the market data of comparable companies in the same industry, and comparing our calculation rate and profit rate and the key assumptions made to determine the appropriate discount rate with the discount rate used by the management to calculate the present value of estimated future cash flow, These key assumptions are inherently uncertain and may be evaluated. The discount rate used to calculate the present value of the estimated future cash flow;
The impact of management bias.
Therefore, we conduct sensitivity analysis on key assumptions such as goodwill impairment identification 6, predicted income and adopted discount rate, and take evaluation as the key audit matters. The impact of changes in key assumptions on the impairment assessment results and whether there are signs of management bias in the selection of key assumptions;
7. Conduct retrospective review by comparing the forecast of the previous year with the performance of the current year, so as to evaluate the reliability and historical accuracy of the management's forecast process.
Betta Pharmaceuticals Co.Ltd(300558) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in Betta Pharmaceuticals Co.Ltd(300558) 2021 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.
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
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 Betta Pharmaceuticals Co.Ltd(300558) 's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless liquidation is planned, operation is terminated or there is no other realistic choice.
The management is responsible for supervising the financial reporting process of Betta Pharmaceuticals Co.Ltd(300558) .
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. The risk of fraud, collusion or failure to control may be higher than that caused by the discovery of material misstatement or fraud. (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 Betta Pharmaceuticals Co.Ltd(300558) going concern 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 Betta Pharmaceuticals Co.Ltd(300558) 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 Betta Pharmaceuticals Co.Ltd(300558) 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 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. China certified public accountant of Lixin certified public accountants: Deng Hongyu
(special general partnership) (project partner)
Chinese certified public accountant: Liu Yaqin
Shanghai, China April 1, 2002
Betta Pharmaceuticals Co.Ltd(300558)
Consolidated balance sheet
December 31, 2021
(unless otherwise specified, the monetary unit is RMB)
Note V closing balance of assets closing balance of last year
Current assets:
Monetary capital (I) 7919895
