Betta Pharmaceuticals Co.Ltd(300558) 2021 annual financial report
April 2022
1、 Audit report
Unqualified opinion of audit opinion type standard
Signing date of audit report: April 1, 2022
Name of audit institution: Lixin Certified Public Accountants (special general partnership)
Audit Report No.: xksbz [2022] No. zf10203
Name of certified public accountant: Deng Hongyu, Liu Yaqin
Body of audit report
Betta Pharmaceuticals Co.Ltd(300558) all shareholders:
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 major aspects, and fairly reflect the financial position of Betta Pharmaceuticals Co.Ltd(300558) 2021 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 "VII. Consolidation principles" described in note (XXVII) of "v. important accounting policies and accounting estimates 1. Understand and evaluate whether the design of key internal control of revenue recognition by the management is total" in the notes to the consolidated financial statements, and test the operation effectiveness of internal control;
Notes to "notes to financial statement items" (XXXVII) Betta Pharmaceuticals Co.Ltd(300558) in 2. Sample the contracts signed between the company and important customers, identify the relevant rights of receiving and returning goods, confirm the 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; Sales revenue. The specific time point of revenue recognition is different due to the differences between the specific sales records before and after the end of the year and the specific terms and conditions including the shipping note and freight sales contract. Sales contracts, such as purchase orders and receipts, are matched with supporting materials to evaluate whether the revenue is based on the corresponding sales. We regard revenue recognition as a key audit matter, because revenue is recognized within the appropriate accounting period according to the terms in the contract Betta Pharmaceuticals Co.Ltd(300558) of the key performance indicators, the revenue recognition time point may be 4. Spot check the original documents related to sales (including sales contracts, delivery orders and signers to achieve performance objectives or expectations; secondly, different orders) to check the authenticity of sales revenue and the accuracy of sales records;
The terms of sale may affect the time point of revenue recognition. 5. Confirm the sales realized by the main customers in the current period and the accounts receivable at the end of the period.
(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:
Note 1 to "v. important accounting policies and accounting estimates" in the notes to the financial statements. We have evaluated and tested the design and implementation of internal control related to goodwill impairment test. The accounting policies and "VII. The effectiveness of consolidated financial statements, including the adoption of key assumptions and the review and approval of impairment provision amount;
Notes to "notes to table items" (XVII). 2. Evaluate the competence, professional quality and objectivity of the external valuation experts appointed by the management. On December 31, 2021, Betta Pharmaceuticals Co.Ltd(300558) consolidated financial performance; The book value of goodwill in the financial statements is RMB 41358400009. 3. By referring to the industry practice, the appraisal yuan used by the management in the cash flow forecast is evaluated. The above goodwill is mainly formed by the acquisition of kanangi Pharmaceutical Technology (appropriateness of the above value method; sea) Co., Ltd. Due to the impact of goodwill on the consolidated financial statements. 4. By comparing the project R & D and commercial operation period, revenue growth rate, sustainable growth rate and cost importance, and the key input values such as significant cost increase involved in determining whether impairment should be accrued with the management budget and forecast and Industry Report, the management makes prudent judgment and estimation, Especially the key assumptions and judgments used in predicting the future cash flow price and preparing the discounted cash flow forecast; In terms of the forecast income, long-term average growth rate and profit margin, 5. Recalculate the discount rate based on the market data of comparable companies in the same industry, and compare our calculation and the key assumptions made to determine the appropriate discount rate with the discount rate used by the management in calculating the present value of the estimated future cash flow, The key assumption has inherent uncertainty and may be biased by the management to evaluate the discount rate used in calculating the present value of the estimated future cash flow; The impact of. Therefore, we identify the impairment of goodwill as a key audit. 6. We conduct sensitivity analysis on key assumptions such as the predicted income and the adopted discount rate to evaluate the event. 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.
4、 Other information
Betta Pharmaceuticals Co.Ltd(300558) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Betta Pharmaceuticals Co.Ltd(300558) 2021, 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. 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 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.
Chinese 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 2. The unit of the statement in the notes to the financial statements is: yuan 1. The preparation unit of the consolidated balance sheet is Betta Pharmaceuticals Co.Ltd(300558)
December 31, 2021
Unit: Yuan
December 31, 2021 December 31, 2020
Current assets:
Monetary capital 79198955414134594458099
Provision for settlement
Lending funds
Trading financial assets 20100550685
Derivative financial assets
Notes receivable 4,4
