APT(SH:688617) Zheng Quan Zhi Xing·2025-07-07 13:11Core Opinion - The audit report indicates that Hunan Yiweidi Medical Equipment Co., Ltd. has prepared its financial statements in accordance with the relevant accounting standards, providing a fair representation of its financial position as of March 31, 2025, and its operating results and cash flows for the first quarter of 2025 [1][3]. Company Overview - Hunan Yiweidi Medical Equipment Co., Ltd. was established in January 2011 and is primarily engaged in the research, development, manufacturing, and sales of medical devices, as well as the production of sanitary materials and medical supplies [3][4]. - The company is controlled by Cheng Zhenghui, who holds 42.34% of the shares [3]. Financial Reporting Basis - The financial statements are prepared based on the "Enterprise Accounting Standards" issued by the Ministry of Finance, with a focus on the going concern assumption [3][4]. - The reporting period for the financial statements is from January 1 to December 31 each year [3]. Important Accounting Policies - The company uses the Chinese Yuan (RMB) as its functional currency and recognizes cash and cash equivalents based on liquidity and risk of value change [3][4]. - Financial instruments are classified at initial recognition based on the business model and cash flow characteristics [4][5]. Financial Assets and Liabilities - Financial assets are classified into categories such as those measured at amortized cost and those measured at fair value, with specific criteria for each category [4][5]. - The company recognizes expected credit losses based on historical data and future economic forecasts, applying a probability-weighted approach [7][8]. Inventory Management - Inventory is classified into categories such as raw materials, finished goods, and work in progress, and is measured at the lower of cost or net realizable value [8][9]. Long-term Investments - Long-term equity investments are accounted for using the equity method, with adjustments made based on the investee's net income and other comprehensive income [10][11]. Fixed Assets and Depreciation - Fixed assets are recognized at cost and depreciated using the straight-line method over their useful lives, which vary by asset type [12][13]. Intangible Assets - Intangible assets are initially measured at cost, with amortization applied to those with finite useful lives [14][15]. Employee Benefits - The company recognizes short-term employee benefits as liabilities and expenses in the period they are incurred, including social insurance and housing fund contributions [18][19].