Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Co., Ltd
audit report
Dhsz [2022] 009377
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical Group Co., Ltd
Audit report and financial statements
(from January 1, 2021 to December 31, 2021)
Contents page 1. Audit report 1-3 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 1-84
Audit report
All shareholders of dahuashen Zi [2022] 009377 Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Co., Ltd.:
1、 Audit opinion
We have audited the financial statements of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Co., Ltd. (hereinafter referred to as Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical 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 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) pharmaceutical 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. According to the code of professional ethics for Chinese certified public accountants, we are independent of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical 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、 Responsibilities of management and governance for financial statements
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical company’s management is responsible for preparing the financial statements in accordance with 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 due to fraud or error.
When preparing the financial statements, the management of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical company is responsible for evaluating the continuous operation ability of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical company, disclosing matters related to continuous operation (if applicable), and applying the assumption of continuous operation, unless the management plans to liquidate Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical 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) pharmaceutical company.
4、 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 in order to design appropriate audit procedures, but the purpose is not to express opinions on the effectiveness of internal control.
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) pharmaceutical 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) pharmaceutical 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) pharmaceutical 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. Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
Duan Qi, Beijing, China Certified Public Accountant:
Xin Qinghui April 13, 2002
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Co., Ltd
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) Pharmaceutical Group Co., Ltd. (hereinafter referred to as the company or the group, Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical company, formerly known as Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Co., Ltd.) was formerly Zhejiang Wanbang Pharmaceutical Co., Ltd. (hereinafter referred to as Wanbang Pharmaceutical Co., Ltd.), which was jointly invested and established by Zhejiang Wanbang Industrial Co., Ltd. and natural person Zhuang Hui, It was registered with Wenling Administration for Industry and Commerce on July 29, 2002 and obtained the business license of enterprise legal person with registration number of 3310811005662, with a registered capital of 10 million yuan at the time of establishment. Headquartered in Wenling City, Zhejiang Province, the company now holds a business license with a unified social credit code of 9133100074290886×3 issued by Taizhou Administration for Industry and commerce, with a registered capital of 360 million yuan.
Business scope of the company: drug production (for items that must be approved according to law, business activities can be carried out only after being approved by relevant departments, and the specific business items shall be subject to the approval results). General items: technical services, technical development, technical consultation, technical exchange, technology transfer and technology promotion; Sales of chemical products (excluding licensed chemical products); Production of industrial textile products; Sales of industrial textile products; Sales of packaging materials and products; Sales of instruments and meters (except for the items subject to approval according to law, carry out business activities independently according to law with the business license).
（2） Approval and issuance of financial statements
The financial statements were approved and issued by the board of directors on April 13, 2022.
2、 Scope of consolidated financial statements
There are 6 subsidiaries included in the scope of consolidated financial statements in the current period, including:
Subsidiary name subsidiary type level shareholding ratio (%) voting right ratio (%) Wenling Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Enterprise Management Consulting Co., Ltd. wholly owned subsidiary level II 100.00 100.00
Zhejiang Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Health Technology Co., Ltd. wholly owned subsidiary level II 100.00 100.00
Zhejiang Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) pharmaceutical raw materials Co., Ltd. wholly owned subsidiary level II 100.00 100.00
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Hangzhou Pharmaceutical Technology Co., Ltd. wholly owned subsidiary level II 100.00 100.00
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) Pharmaceutical Group Zhejiang Medicine Co.Ltd(600216) Sales Co., Ltd. wholly owned subsidiary level II 100.00 100.00
Jiangsu bestcom Pharmaceutical Co., Ltd. holding subsidiary level II 70.00 70.00
The reasons why the shareholding ratio of subsidiaries is different from that of voting rights and the basis for holding half or less of the voting rights but still controlling the investee are detailed in “note VIII. Equity in other entities (I) equity in subsidiaries”.
Compared with the previous period, the number of entities included in the consolidated financial statements in the current period decreased by 1:
1. Subsidiaries, special purpose entities and business entities with control rights formed through entrusted operation or leasing in the merger scope reduced in December 2021
Reason for name change
Taizhou Demu Technology Co., Ltd. completed the equity transfer in December 2021
See “note VII. Change of consolidation scope” for details of the subject of change of consolidation scope.
3、 Preparation basis of financial statements
（1） Preparation basis of financial statements
The company recognizes and measures the actual transactions and events in accordance with the accounting standards for business enterprises – Basic Standards and specific accounting standards for business enterprises, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions (hereinafter collectively referred to as “accounting standards for business enterprises”), The financial statements are prepared in combination with the provisions of the rules for the preparation of information disclosure by companies offering securities to the public No. 15 – General Provisions on financial reports (revised in 2014) of the China Securities Regulatory Commission.
（2） Going concern
The company has evaluated the continuous operation ability for 12 months since the end of the reporting period, and no events or situations that have major doubts about the continuous operation ability are found. Therefore, the financial statements are prepared on the basis of going concern assumption.
（3） Accounting basis and pricing principle
The accounting of the group is based on the accrual basis. In addition to the historical value of some financial instruments, the historical value is used as the basis for measurement. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. 4、 Important accounting policies and accounting estimates
（1） Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the company’s financial status, operating results, cash flow and other relevant information during the reporting period.
（2） Accounting period
The fiscal year is from January 1 to December 31 of the Gregorian calendar.
（3） Business cycle
Business cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents. The company takes 12 months as a business cycle and takes it as capital
