Shenzhen Hepalink Pharmaceutical Group Co.Ltd(002399) audited financial statements for 2021
catalogue
Page audit report 1 – 8 audited financial statements
Consolidated balance sheet 9 – 11 consolidated income statement 12 – 13 consolidated statement of changes in shareholders’ equity 14 – 15 consolidated cash flow statement 16 – 17 company balance sheet 18 – 19 company income statement 20
Statement of changes in shareholders’ equity 21 – 22 cash flow statement 23 – 24 notes to financial statements 25 – 189 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 2
3. Reconciliation of differences between China and IFRS 2
Notes to financial statements (Continued)
III. important accounting policies and accounting estimates in 2021 (Continued) Bookkeeping base currency the bookkeeping base currency of the company and the currency used to prepare the financial statements are RMB. Unless otherwise specified, it is expressed in RMB. Subsidiaries and associated enterprises of the group determine their recording currency according to the main economic environment in which they operate, and convert it into RMB when preparing financial statements. 4. Business combination business combination is divided into business combination under the same control and business combination not under the same control. Business combination under the same control: a business combination under the same control refers to a business combination in which the enterprises participating in the combination are ultimately controlled by the same party or the same parties before and after the combination, and the control is not temporary. For business combinations under the same control, the party that obtains control over other enterprises participating in the merger on the merger date is the merging party, and other enterprises participating in the merger are the merged party. The merger date refers to the date on which the combining party actually obtains control over the merged party. The assets and liabilities acquired by the combining party in the business combination under the same control (including the goodwill formed by the final controller’s acquisition of the combined party) shall be subject to relevant accounting treatment based on the book value in the final controller’s financial statements on the combination date. For the difference between the book value of the net assets obtained by the combining party and the book value of the merger consideration paid (or the total face value of the issued shares), adjust the capital stock premium in the capital reserve and the balance transferred from the capital reserve of the original system. If it is insufficient to offset, adjust the retained earnings. A business combination not under the same control is a business combination not under the same control if the enterprise participating in the combination is not ultimately controlled by the same party or the same parties before and after the combination. For business combinations not under the same control, the party that obtains control over other enterprises participating in the merger on the acquisition date is the acquirer, and other enterprises participating in the merger are the acquiree. The date of purchase refers to the date on which the purchaser actually obtains control over the acquiree. Identifiable assets, liabilities and contingent liabilities of the acquiree obtained from business combinations not under the same control shall be measured at fair value on the acquisition date.
Notes to financial statements (Continued)
III. important accounting policies and accounting estimates of RMB in 2021 (Continued) The difference between the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is greater than the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill, and the subsequent measurement is carried out at the cost less the accumulated impairment loss. The fair value of the equity held by the acquirer and the identifiable consideration of the acquirer before the acquisition date are less than the fair value of the assets held by the acquirer The measurement of the fair value of liabilities and contingent liabilities, the fair value of the merger consideration paid (or the fair value of equity securities issued) and the fair value of the equity held by the acquiree before the acquisition date shall be reviewed, If the sum of the fair value of the merger consideration paid after review (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference shall be included in the current profit and loss. 5. Consolidated financial statements the consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer to the entities controlled by the company (including the separable parts of enterprises and invested units, as well as the structured entities controlled by the company). When preparing the consolidated financial statements, the subsidiaries adopt the accounting year and accounting policy consistent with that of the company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions between companies within the group are fully offset at the time of consolidation.
If the current loss shared by the minority shareholders of a subsidiary exceeds the share enjoyed by the minority shareholders in the opening shareholders’ equity of the subsidiary, the balance shall still be offset against the reduced shareholders’ equity. For subsidiaries acquired through business combination not under the same control, the operating results and cash flow of the acquiree shall be included in the consolidated financial statements from the date when the group obtains control until the group terminates its control. When preparing the consolidated financial statements, the financial statements of subsidiaries shall be adjusted on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date. For subsidiaries obtained through business combination under the same control, the operating results and cash flow of the combined party shall be included in the consolidated financial statements from the beginning of the current period. When preparing and comparing the consolidated financial statements, the relevant items of the previous financial statements are adjusted, which is regarded as the reporting entity formed after the merger has existed since the final controller began to implement control. If changes in relevant facts and circumstances lead to changes in one or more of the control elements, the group reassesses whether to control the investee. Under the condition of not losing control, the change of minority shareholders’ equity is regarded as equity transaction.
Notes to financial statements (Continued)
III. important accounting policies and accounting estimates of RMB in 2021 (Continued) Cash and cash equivalents refer to the group’s cash on hand and deposits that can be used for payment at any time; Cash equivalents refer to the short-term, highly liquid investments held by the group, which are easy to be converted into known amounts of cash and have little risk of value change. 7. Translation of foreign currency business and foreign currency statements the group converts the amount of foreign currency into the amount of functional currency for foreign currency transactions. When foreign currency transactions are initially recognized, the amount of foreign currency is converted into the amount of functional currency at the spot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The resulting differences in settlement and translation of monetary items are included in the current profits and losses, except for the differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which are treated in accordance with the principle of capitalization of borrowing costs. Foreign currency non monetary items measured at historical cost shall still be translated at the spot exchange rate on the transaction date without changing the amount in the functional currency. Foreign currency non monetary items measured at fair value are translated at the spot exchange rate on the date when the fair value is determined, and the resulting difference is included in the current profit and loss or other comprehensive income according to the nature of non monetary items. For overseas operations, the group converts its recording currency into RMB when preparing the financial statements: the assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date, and the shareholders’ equity items, except the “undistributed profit” item, are translated at the spot exchange rate at the time of occurrence; The income and expense items in the income statement are translated at the spot exchange rate on the transaction date. The translation difference of foreign currency financial statements generated according to the above translation is recognized as other comprehensive income. When disposing of an overseas operation, other comprehensive income related to the overseas operation shall be transferred to the current profit and loss of the disposal, and part of the disposal shall be calculated according to the disposal proportion. Notes to financial statements (Continued)
III. important accounting policies and accounting estimates of RMB in 2021 (Continued) Translation of foreign currency businesses and foreign currency statements (Continued) foreign currency cash flows and cash flows of overseas subsidiaries are translated at the spot exchange rate on the date of cash flow. The impact of exchange rate changes on cash is presented separately in the cash flow statement as a reconciliation item. 8. Financial instruments financial instruments refer to the contracts that form the financial assets of an enterprise and form the financial liabilities or equity instruments of other units. Recognition and derecognition of financial instruments the Group recognizes a financial asset or financial liability when it becomes a party to the financial instrument contract. If the following conditions are met, the recognition of financial assets (or part of financial assets, or part of a group of similar financial assets) shall be terminated, that is, they shall be written off from their accounts and balance sheets: (1) the right to receive the cash flow of financial assets expires; (2) Transferred the right to receive the cash flow of financial assets, or assumed the obligation to timely pay the full amount of the received cash flow to a third party under the “handling agreement”; And (a) substantially transferred almost all the risks and rewards of the ownership of the financial asset, or (b) abandoned the control of the financial asset although substantially neither transferred nor retained almost all the risks and rewards of the ownership of the financial asset. If the liability for financial liabilities has been fulfilled, revoked or expired, the financial liabilities shall be derecognized. If the existing financial liabilities are replaced by another financial liability with substantially different terms by the same creditor, or the terms of the existing liabilities are substantially modified, such replacement or modification shall be treated as derecognition of the original liabilities and recognition of new liabilities, and the difference shall be included in the current profits and losses. Financial assets bought and sold in a conventional way shall be recognized and derecognized according to the accounting on the trading day. Buying and selling financial assets by conventional means refers to receiving or delivering financial assets within the time limit specified by laws and regulations or common practices in accordance with the terms of the contract. Trading day refers to the date on which the group promises to buy or sell financial assets. Classification and measurement of financial assets the financial assets of the group are classified into: financial assets measured at fair value through profit or loss, financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income according to the business model of financial assets managed by the group and the contractual cash flow characteristics of financial assets at the time of initial recognition. When and only when the group changes the business model of managing financial assets, all affected relevant financial assets are reclassified. Financial assets are measured at fair value at the time of initial recognition, but if the accounts receivable or accounts receivable financing arising from the sale of goods or the provision of services does not contain significant financing components or does not consider the financing components of no more than one year, the initial measurement shall be made according to the transaction price.
Notes to financial statements (Continued)
III. important accounting policies and accounting estimates of RMB in 2021 (Continued) Financial instruments (Continued) classification and measurement of financial assets (Continued) for financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other types of financial assets are included in the initial recognition amount. The subsequent measurement of financial assets depends on their classification: if the debt instrument investment financial assets measured at amortized cost meet the following conditions at the same time, they are classified as financial assets measured at amortized cost: the business model of managing the financial assets is to collect contract cash flow; The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. The interest income of such financial assets is recognized by the effective interest rate method, and the gains or losses arising from the derecognition, modification or impairment are included in the current profit and loss. Financial assets invested in debt instruments measured at fair value with changes included in other comprehensive income are classified as financial assets measured at fair value with changes included in other comprehensive income if they meet the following conditions at the same time: the business model of the group for managing the financial assets is based on the receipt of contract cash flow
