Unnamed Pharmaceuticals has not yet had an accounting firm invited to the company’s annual audit work

Beijing Business Daily News (Reporter Liu Fengru) On the evening of March 25, Weiming Pharmaceutical (002581) announced that the company has been actively promoting the selection and employment of accounting firms in 2021, and the company’s management has invited more than ten It has established a number of accounting firms, and actively carried out preliminary investigation, business communication, negotiation and business due diligence with each accounting firm. However, due to the particularity of the ginseng asset inventory work of Jilin Weiming Tianren Chinese Medicine Technology Development Co., Ltd. (hereinafter referred to as “Jilin Weiming”), a wholly-owned subsidiary of the company, and the risk factors that the company has been issued a qualified audit report for 4 consecutive years, So far, no accounting firm has been invited to cooperate with the company’s annual audit.

Wuming Medicine specifically talked about, first of all, Jilin Weiming’s main asset is ginseng. Jilin ginseng is a rare and precious medicinal material. In the frozen frozen soil of the closed mountain. During this period, the thickness of the snow was more than 30 cm, the soil was in the state of permafrost, and the thickness of the permafrost layer was about 40-50 cm. Ginseng usually grows in this part of the frozen soil. It is excavated from frozen soil, so the audit and inventory of ginseng cannot be carried out at this stage. The ginseng seedlings grow out of the ground only from June to October every year, which is the most suitable time to carry out the inventory of ginseng seedlings. Secondly, the inventory of ginseng assets can only be carried out by checking seedlings or digging for random inspection. The inventory method requires very high professionalism. It must be conducted by an accounting firm in conjunction with a professional forestry company with a forestry survey, planning and design qualification certificate issued by the China Forestry Engineering Construction Association. The survey and research institute carries professional national forest map, compass, satellite positioning device, bluetooth camera, 5-meter iron rod and other reloading professional equipment combined with Aowei software, ACGIS software, etc., so as to ensure the acquisition of real and effective audit inventory data. Finally, since 2017, the company has been issued an annual audit report with qualified opinion for 4 consecutive years. Therefore, most of the invited accounting firms rejected the company’s annual audit invitation due to the principle of prudence and risk considerations.

Unnamed Medicine stated that due to the natural conditions of the company’s ginseng asset audit and inventory work, the limitation of time window, the limitation of professional methods and the impact of accounting firms on the company’s risk assessment, no accounting firm has been invited to the company. review work. At present, on the one hand, the company is still continuing to expand the scope of the invited firms. On the other hand, the company is conducting in-depth communication with accounting firms that have participated in the on-site audit and inventory of the company’s ginseng assets, expecting them to accept the company’s invitation and complete the company’s annual audit work. .