Yifan Pharmaceutical Co.Ltd(002019) audit report and financial statements for the year 2021
Yifan Pharmaceutical Co.Ltd(002019)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Table of contents page
1、 Audit report 1-6 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 III Notes to financial statements 1-121
audit report
Xin Hui Shi Bao Zi [2022] No. zb10373 Yifan Pharmaceutical Co.Ltd(002019) all shareholders:
1、 Audit opinion
We have audited the financial statements of Yifan Pharmaceutical Co.Ltd(002019) (hereinafter referred to as Yifan Pharmaceutical Co.Ltd(002019) ), 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 Yifan Pharmaceutical Co.Ltd(002019) 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Yifan Pharmaceutical Co.Ltd(002019) , 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) recognition of revenue details of accounting policies for revenue recognition and analysis of revenue our audit procedures mainly include: please refer to "III. important accounting" in the notes to the consolidated financial statements (1) understand and evaluate the relevant policies and accounting estimates of the management related to revenue recognition, and the design and operation effectiveness of the key internal control described in note (XXVII); accounting policies and "v. notes to the items of the consolidated financial statements (2) Combined with the business type, select a sample to check the sales contract and explain "(45). Identify the contract terms of control transfer, evaluate the company's income, and confirm whether the company's accounting policies mainly engaged in polymer materials, APIs and pharmaceuticals meet the requirements of accounting standards for business enterprises; Research and development, production and sales of products and marketing of drugs (3) implement analytical procedures for operating revenue and gross profit margin. Service. In 2021, the company's operating revenue was RMB 4.409 billion for the people's Bank of China (4) to carry out detailed test and check the relevant revenue recognition. Since revenue is the company's key business supporting documents, including contracts, invoices and performance indicators of third-party warehouse delivery, and there are differences in operating products and services, confirmation records, customer receipt documents, business execution reports, etc., revenue recognition involves the judgment of the management, so it is necessary to evaluate whether the company's revenue recognition complies with the accounting policies; We recognize revenue as a key audit matter (5) conduct cut-off test on sales revenue;
Item. (6) Confirm the main customers by letter.
(II) impairment assessment of goodwill details and composition analysis of accounting policies for impairment of goodwill the audit procedures we are required to implement mainly include: refer to the accounting control design and testing the effectiveness of key controls described in note (20) to "III. important accounting policies (1) understand and evaluate internal policies and accounting estimates related to impairment test of goodwill" to the consolidated financial statements; Policy and "v. notes to consolidated financial statements" (x (2) review the management's recognition of the asset group containing goodwill and VII). Allocation method of goodwill.
As of December 31, 2021, the company's goodwill balance (3) assessed the assumptions adopted by the management to test the goodwill impairment of RMB 2.902 billion and the provision for goodwill impairment of RMB 164 million. And methods: for the future income and operation in the cash flow forecast, when conducting the impairment test on the relevant asset group or asset composition result containing goodwill and the historical performance combination of the relevant asset group or asset group combination, the company is required to compare the estimation and business development plan, and evaluate the future cash flow rate, profit growth rate and The input of key assumptions and parameters such as discount rate and the determination of appropriate discount rate to calculate the present value. rationality. And discuss with internal evaluation experts that if the present value of cash flow of relevant asset groups in the management report is lower than the key assumptions, important parameters and fair value valuation model value used in their accounts, the impairment loss of goodwill shall be recognized. Due to type. The amount of goodwill is significant, and the impairment test requires the management to make significant judgment. Therefore, we identify the goodwill impairment test as a key audit event.
Key audit matters how to deal with them in the audit
(III) recognition of development expenditure. Details of accounting policies and composition analysis of development expenditure. The audit procedures we are required to implement mainly include: refer to the accounting design and operation effectiveness described in the note (XIX) to "III. important accounting policies (1) understand and test the internal control policies and accounting estimates related to development expenditure" in the notes to the consolidated financial statements; Policies and "v. notes to consolidated financial statements" (x (2) understand the accounting policies related to development expenditure, including corporate VI).
The division divides the research stage and development stage of internal research and development projects
As of December 31, 2021, according to the specific standards of the company's development expenditure account segment, the support surface value of internal research and development projects in the development stage is 2.433 billion yuan. The company will meet the conditions for capitalization. Judge whether the formulation of accounting policies is in line with the relevant provisions of the accounting standards for business enterprises in the "development expenditure" subject, whether it is in line with the detailed accounting of the company's projects, and the actual situation in the process of R & D; If the project fails or terminates, the relevant development expenditure is transferred to (3) obtain and check the R & D project initiation and R & D process into the current profit and loss, obtain the production approval of the project, relevant approval and supporting documents, business materials and R & D expenditure, and the development expenditure is transferred to the sub project management account of the "intangible assets" account. Confirm the distinction between R & D expenditure and development expenditure is to conduct detailed accounting. Due to the significant amount of development expenditure, whether it is consistent with the principles stated in the company's accounting policies; And whether the capitalization conditions are met and the subsequent projects are lost. (4) for the new development expenditure projects in this period, the failure to obtain or the termination of the project involves the management's major judgment supporting evidence documents, and the outsourcing of important projects is extracted and consulted. Therefore, we identify the measurement of development expenditure as the key audit matters of purchase contract, outsourcing agreement, business data, invoice and payment note. According to the original vouchers such as the and internal approval process, check the depreciation in the development expenditure, the calculation and distribution form corresponding to the employee salary, the original expenditure voucher, etc., and verify whether the distribution is reasonable;. (5) For the development expenditure items reduced in the current period, for the intangible assets carried forward, check whether the time point and amount of the development expenditure carried forward to the intangible assets are correct, and for the expenses carried forward due to project failure or project stop, Obtain the company's review form and other information on such development expenditure projects, and check whether the accounting basis is complete and whether the accounting treatment is accurate;
4、 Other information
Yifan Pharmaceutical Co.Ltd(002019) Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the annual report of Yifan Pharmaceutical Co.Ltd(002019) 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 the going concern ability of Yifan Pharmaceutical Co.Ltd(002019) the company, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless liquidation, termination of operation or no other realistic option is planned.
The management is responsible for supervising the financial reporting process of Yifan Pharmaceutical Co.Ltd(002019) .
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 Yifan Pharmaceutical Co.Ltd(002019) 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 Yifan Pharmaceutical Co.Ltd(002019) unable to continue to operate.
(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 for the financial information of entities or business activities in Yifan Pharmaceutical Co.Ltd(002019) . 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 requirements of professional ethics related to independence, and communicate with the management all relationships and issues that may reasonably be considered to affect our independence
