Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
audit report
Dhsz [2022] 009376
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page I. audit report 1-7 II. Audited financial statements
Consolidated balance sheet 1-2 consolidated income statement 3 consolidated cash flow statement 4 consolidated statement of changes in shareholders' equity 5-6 parent company balance sheet 7-8 parent company income statement 9 parent company cash flow Table 10 changes in shareholders' equity of parent company 11-12 notes to financial statements 1-118
Audit report
Dhsz [2022] 009376 Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) all shareholders:
1、 Audit opinion
We have audited the financial statements of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) (hereinafter referred to as Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company), 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 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 consolidated and parent company's financial position of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company as of December 31, 2021 and the consolidated and parent company's operating results and cash flow 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 Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company 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. 1. Recognition of operating income
2. Impairment of goodwill
（1） Recognition of operating income
1. Event description
For details of accounting policies for revenue recognition and analysis of revenue, please refer to the accounting policies described in "IV. important accounting policies and accounting estimates" (XXXIV) and note 41 of "VI. notes to main items of consolidated financial statements".
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company's operating revenue in 2021 was 1930 Southern Publishing And Media Co.Ltd(601900) yuan, which was one of the key performance indicators of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company. The recognition of operating revenue had a significant impact on the financial statements. Therefore, we identified the recognition of operating revenue of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company as a key audit event.
2. Audit response
Our important audit procedures for the recognition of operating revenue include:
(1) Understand and evaluate the management's design of the internal control of the sales and collection process of the company's main business types, and test the effectiveness of the operation of key control points; (2) Through sampling inspection of sales contracts and interviews with management, the time point and method of revenue recognition of various business types are analyzed and evaluated, and then the rationality of the company's operating revenue recognition policy is evaluated;
(3) The following important substantive test procedures shall be implemented for operating income:
① Substantive analysis procedure: compare the main business income, main business cost and gross profit margin, compare the current year with the previous year, and analyze the reasons for the changes of main business income, main business cost and gross profit margin;
② Conduct detailed test on the operating revenue, and sample check the supporting documents related to the confirmation of operating revenue, including sales contract, sales invoice, delivery order, logistics order, customer receipt, etc;
③ Combined with the audit of accounts receivable and contract liabilities, select the letter sales of main customers; ④ Conduct a cut-off test on the operating income before and after the balance sheet date to confirm that the operating income is recorded in the appropriate accounting period.
Based on the audit work performed, we believe that the assumptions and methods adopted by the management in the recognition of operating revenue are acceptable and the management's judgment and estimation on the recognition of operating revenue are reasonable.
（2） Goodwill impairment
As shown in the goodwill item in the notes to the financial statements, Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company's original book value of goodwill is 29809400 yuan, the impairment of goodwill is 1033074 million yuan, the book value is 194786600 yuan, and the book value of goodwill accounts for 4.46% of the total assets Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) the management made significant judgments when determining the recoverable amount of the asset group. The key assumptions used in the calculation of the recoverable amount include: growth rate, gross profit margin, discount rate, etc.
As there are obvious signs of goodwill impairment and involve significant judgment of the management, we regard goodwill impairment as a key audit event. 3. Audit response
Our important audit procedures for goodwill impairment include:
(1) Understand, evaluate and test the key internal control related to goodwill impairment; (2) Evaluate the appropriateness of the goodwill impairment test method, and compare the actual data of the current year of relevant asset groups with the forecast data of previous years to evaluate the reliability and bias of the management's cash flow forecast;
(3) Evaluate the rationality of the key assumptions related to the goodwill impairment test of the management, including the prediction of future cash flow, future growth rate and applicable discount rate;
(4) Evaluate the competence, professional quality and objectivity of the external valuation experts appointed by the management, discuss with the external valuation experts, review the valuation methods of the asset group and the evaluation report issued by the external valuation experts, and evaluate the rationality of the goodwill impairment test;
(5) Review whether the calculation of the recoverable amount of the asset group is accurate, compare the difference between the book value of the asset group to which the goodwill belongs and its recoverable amount, and confirm whether there is goodwill impairment; (6) Consider whether the impairment of goodwill and the disclosure of key assumptions adopted in the financial statements meet the requirements of the accounting standards for business enterprises.
Based on the audit work performed, we believe that the assumptions and methods adopted by the management in the goodwill impairment test are acceptable and the management's overall assessment of the provision for goodwill impairment is acceptable.
4、 Other information
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) the management of the company is responsible for other information. Other information includes the information covered in the 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 understand 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
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) the management of the company 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 of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company is responsible for evaluating the sustainable operation ability of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, unless the management plans to liquidate Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company, terminate operation or has no other realistic choice.
The management is responsible for supervising the financial reporting process of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company.
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:
1. 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. 2. Understand the internal control related to audit to design appropriate audit procedures.
3. Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
4. Draw a conclusion on the appropriateness of the going concern assumption used by the management. 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 the sustainable operation ability of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company. If we conclude that there are significant uncertainties, the auditing standards require us to draw the attention of report 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 lead to the inability of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company to continue its business. 5. Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
6. Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company 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. (there is no text below this page)
(there is no text on this page, which is the signature page of dahuashen Zi [2022] 009376 audit report)
Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner) Duan Qi, Beijing, China Certified Public Accountant:
Xin Qinghui April 13, 2002
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
Notes to financial statements of 2021
1、 Basic information of the company
（1） Place of registration, organizational form and headquarters address of the company
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) (formerly known as Zhejiang Dongliang New Material Co., Ltd., Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) New Material Co., Ltd., hereinafter referred to as the company)
