Chipscreen(SH:688321) Zheng Quan Zhi Xing·2025-08-22 10:18Audit Opinion - The audit report states that the financial statements of Shenzhen Micu Biotechnology Co., Ltd. (referred to as "Micu Bio") fairly reflect its financial position as of December 31, 2024, in accordance with the accounting standards issued by the Ministry of Finance of the People's Republic of China [1][2]. Key Audit Matters - Capitalization of development expenditures amounted to RMB 125,271,997.57 for the year 2024, with a cumulative balance of RMB 152,216,111.48 as of December 31, 2024. The audit identified this as a key audit matter due to significant management judgment involved in determining whether the expenditures meet the capitalization criteria [1][2][3]. - The audit procedures included evaluating internal controls related to the capitalization of development expenditures, obtaining relevant approvals and feasibility reports, and assessing the technical feasibility of the projects [1][2]. Company Overview - Shenzhen Micu Biotechnology Co., Ltd. was established on March 29, 2018, and is primarily engaged in drug technology development, new drug research, and production of pharmaceuticals and health food [5][6]. - The company operates under the accounting standards set by the Ministry of Finance and adheres to the disclosure requirements of the China Securities Regulatory Commission [5][6]. Financial Reporting Basis - The financial statements are prepared on a going concern basis, indicating that the company has the ability to continue its operations for at least 12 months from the reporting date without significant uncertainties [5][6]. Accounting Policies - The company has specific accounting policies for recognizing and measuring bad debt provisions, inventory valuation, and the capitalization of research and development costs, which are tailored to its operational characteristics [6][7]. - The financial statements comply with the requirements of the Ministry of Finance and reflect the company's financial condition and results of operations accurately [6][7]. Financial Instruments - The company classifies its financial assets and liabilities based on their management business model and cash flow characteristics, with initial recognition at fair value [10][11]. - Financial assets are subsequently measured at either amortized cost or fair value, depending on their classification [10][11].