Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) Pharmaceutical Co., Ltd
2021 annual audit report
Hxsz [2022] No. 220 Guangdong Advertising Group Co.Ltd(002400) 16
Audit report
All shareholders of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) Pharmaceutical Co., Ltd. (hxsz [2022] No. 220 Guangdong Advertising Group Co.Ltd(002400) 16):
1、 Audit opinion
We have audited the financial statements of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) Pharmaceutical Co., Ltd. (hereinafter referred to as "Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) " or "the 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 Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) 2021 as of December 31, 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 Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) , 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 financial statements of 2021 according to our professional judgment. We shall not express an opinion on these matters based on the overall audit of the financial statements.
(I) recognition of income
1. Item description
For details of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) revenue, please refer to "notes III (XXIX) to important accounting policies and accounting estimates" and "notes V (xxx) to consolidated financial statements". The consolidated operating income of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) 2021 was 349788900 yuan, mainly from the sales of Chinese patent medicine and masks. Revenue is one of the key performance indicators of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) , so revenue recognition is regarded as a key audit matter.
2. Audit response
Our main audit procedures are as follows:
(1) Test the design and implementation of key internal controls related to revenue cycle to confirm the effectiveness of internal controls;
(2) Understand the changes of industrial policies and environment, and evaluate whether the change of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) income is reasonable; (3) Obtain the agreement signed between Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) and the customer, and verify the key terms of the contract, such as delivery and acceptance, payment and settlement, exchange and return policies, service provision, etc; Check the purchase orders, delivery documents, transportation documents, bookkeeping vouchers, payment collection documents, regular reconciliation letters and other materials between Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) and customers, and confirm the balance of funds and current sales volume to customers;
(4) Ask the relevant personnel of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) by inquiring the industrial and commercial data of the main customers to confirm whether there is an association relationship between the customers and Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) or not; Understand the changes of major customers, contract execution and terminal sales of both parties, so as to confirm whether the products are still controlled by Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) although the goods are stored in the customers;
(5) Conduct on-site visits to major customers. During the visit, interview the main management personnel of major customers, check the customer's business premises on site, and obtain the customer's main business qualification and related relationship confirmation letter;
(6) Obtain the return and exchange records in the Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) supply chain system and check them to confirm whether there are major abnormal returns and exchanges that affect revenue recognition;
(7) For possible intertemporal risks, we have implemented targeted audit procedures, including but not limited to: performing a cut-off test on the income recognized before and after the balance sheet date, selecting samples to check the relevant time nodes of the documents from the delivery of goods to the receipt of customers, so as to evaluate whether the income is recognized in an appropriate period and whether there are intertemporal problems.
4、 Other information
The Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) Management (hereinafter referred to as the management) is responsible for other information. Other information includes the information covered in the annual report of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) 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
Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) 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 due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going concern ability of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) and disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless the management plans to liquidate Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) , terminate the operation or have no other realistic options.
The management layer is responsible for supervising the financial reporting process of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) .
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 in order to design appropriate audit procedures, but the purpose is not to express an opinion 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 conclusions on the appropriateness of management's use of going concern assumptions. 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 ability of Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) to continue operation. 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 Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) to be unable to operate continuously.
(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 Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
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.
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.
Huaxing certified public accountants, Chinese Certified Public Accountants:
(special general partnership) (project partner)
Chinese certified public accountant:
Fuzhou, China April 21, 2002
Consolidated balance sheet
Prepared by: Guangdong Jiangxi Wannianqing Cement Co.Ltd(000789) Pharmaceutical Co., Ltd. unit: RMB
Project note V December 31, 2021 December 31, 2020
Current assets:
Monetary capital (I) 4853488429810813145893
Trading financial assets (II) 48038430312628856958
Derivative financial assets
Notes receivable (III) 293730 Shenzhen Glory Medical Co.Ltd(002551) 327
Accounts receivable (IV) 7035207334655473661
Receivables financing (V) 26920288373472106583
Prepayment (VI) 278250626524705971
Other receivables (VII) 193920664389159815
Including: interest receivable
Dividends receivable
Inventory (Ⅷ) 51912392335526211452
Contract assets
Assets held for sale
Non current assets due within one year (IX) 2042315000
Other current assets (x) 83288777292241676
Total current assets 7088434419928304453336
Non current assets:
Debt investment (XI) 3347025000
Other debt investment
long-term receivables
Long term equity investment
Investment in other equity instruments
Other non current financial assets
Investment real estate
Fixed assets (XII) 73480556569148158503
Construction in progress
Productive biological assets
Oil and gas assets
Right to use assets (XIII) 106540513
Intangible assets (XIV) 789074646809210090
Development expenditure
goodwill
Long term deferred expenses
Deferred income tax assets (XV) 122025438115798277
Other non current assets (XVI) 22742624
Total non current assets 1173546387710073166870
Total assets 82619808076
