Novo Nordisk Region China A/S
c/o Novo Nordisk A/S
Novo Allé 1
2880 Bagsværd
Denmark
CVR number 33 76 13 33
Annual Report 2022
The Annual Report has been presented and adopted at the Annual General
Meeting on 17 May 2023.
Chairman of the meeting
Novo Nordisk Region China A/S
Contents
Page
Management statement and Auditor's report
Statement by the Board of Directors and Executive Management 3
Independent Auditor's report 4
Management review
Management commentary 6
Financial Statements 1 January - 31 December 2022
Income statement 7
Balance sheet 8
Statement of changes in equity 9
Accounting policies 10
Notes 12
Annual Report Page 2
Novo Nordisk Region China A/S
Statement by the Board of Directors and Executive Management
Bagsværd, 17 May 2023
Executive Management:
Peter Bøggild
Board of Directors:
Karsten Munk Knudsen Linette Tangsgaard Nielsen Tomas Haagen
Chairman
Today, the Board of Directors and Executive Management have approved the Annual Report of Novo Nordisk Region China A/S for the
year 2022.
In our opinion, the Financial Statements give a true and fair view of the financial position of the company at 31 December 2022 and of the
results of the company's operations for 2022 in accordance with the Danish Financial Statements Act.
Further, in our opinion, the Management’s review gives a fair review of the development in the company’s operations and financial
matters and the results of the company’s operations and financial position.
The Annual Report has been prepared in accordance with the Danish Financial Statements Act.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Annual Report Page 3
Novo Nordisk Region China A/S
Independent Auditor's report
To the Shareholder of Novo Nordisk Region China A/S
Opinion
Basis of Opinion
Management's responsibility for the financial statements
Auditor's responsibility for the audit of the financial statements
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by Management.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
We have audited the financial statements of Novo Nordisk Region China A/S for the financial year 1 January 2022 - 31 December 2022,
which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant
accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31 December 2022 and of the results
of its operations for the financial year 1 January 2022 - 31 December 2022 in accordance with the Danish Financial Statements Act.
We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in
Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor’s responsibilities for the
audit of the financial statements" section of this auditor’s report. We are independent of the Entity in accordance with the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish
Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue as a going concern, for
disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial
statements unless Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in
Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
Annual Report Page 4
Novo Nordisk Region China A/S
Independent Auditor's report
•
•
Statement on the management commentary
Copenhagen, 17 May 2023
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR-no. 33 96 35 56
Sumit Sudan Yassir Iqbal
State Authorised Public Accountant State Authorised Public Accountant
MNE no. 33716 MNE no. 45103
Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish
Financial Statements Act.
Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements
and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material
misstatement of the management commentary.
Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial
statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, and
whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Management is responsible for the management commentary.
Our opinion on the financial statements does not cover the management commentary, and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the management commentary and, in doing so,
consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
Annual Report Page 5
Novo Nordisk Region China A/S
Management commentary
Main activities
The company's main activities are the holding of equity investments in companies, and other investments, as well as financial activities,
and – at the discretion of the Board of Directors – supporting the operations of such companies.
Development during the financial year
Net profit for Novo Nordisk Region China A/S ended at DKK 1,440 thousand f
for the year 2021.
The developement is mainly driven by exchange rate gain from the sale of Novo Nordisk (Shanghai) Trading Co., LtD.
During 2022 the company sold its investments in Novo Nordisk (Shanghai) Trading Co., LtD. to Novo Nordisk (China) Pharmaceuticals
Co., Ltd. The transfer is recognised in accordance with the "pooling of interests" method as if it took place in 2021, meaning that
comparative figures for 2021 have been restated.
Events after the balance sheet date
No events have occurred after the end of the reporting period that materially affect the financial position of the company.
Annual Report Page 6
Novo Nordisk Region China A/S
Income statement
2022 2021
Note DKK '000 DKK '000
Administrative costs 29 25
Operating profit/(loss) (29) (25)
Financial income 1 1.933 -
Financial expenses 2 58 3
Profit/(loss) before income taxes 1.846 (28)
Income taxes expense/(income) 406 (6)
NET PROFIT/(LOSS) FOR THE YEAR 3 1.440 (22)
For proposed appropriation of net profit see note 3.
Annual Report Page 7
Novo Nordisk Region China A/S
Balance sheet at 31 December
2022 2021
Note DKK '000 DKK '000
ASSETS
Amounts owed by affiliated companies 106.344 112.534
Tax receivables - 6
Cash at bank 52 3
TOTAL CURRENT ASSETS 106.396 112.543
TOTAL ASSETS 106.396 112.543
EQUITY AND LIABILITIES
Share capital 4 500 500
Retained earnings 300 104.020
Proposed dividends 105.160 -
TOTAL EQUITY 105.960 104.520
Tax payables 406 7.999
Other liabilities 30 24
TOTAL CURRENT LIABILITIES 436 8.023
TOTAL LIABILITIES 436 8.023
TOTAL EQUITY AND LIABILITIES 106.396 112.543
Annual Report Page 8
Novo Nordisk Region China A/S
Statement of changes in equity at 31 December
Share capital
Retained
earnings
Proposed
dividends
Total
DKK '000
DKK '000
DKK '000
DKK '000
2022
Balance at the beginning of the year 500 104.020 - 104.520
Net profit/(loss) for the year 1.440 1.440
Proposed dividends (105.160) 105.160 -
Balance at the end of the year 500 300 105.160 105.960
2021
Balance at the beginning of the year 500 (155) - 345
Adjustment due to sales of subsidiaries 75.397 75.397
500
75.242
75.742
Net profit/(loss) for the year (22) (22)
Contribution from Novo Nordisk A/S 28.800 28.800
Balance at the end of the year 500 104.020 - 104.520
Annual Report Page 9
Novo Nordisk Region China A/S
Accounting policies
- translation of subsidiaries' net assets at the beginning of the year at the exchange rates at the balance sheet date
- translation of subsidiaries' income statements at average exchange rates and translation of their balance sheet items at the exchange
rates at the balance sheet date
- translation of non-current intra-Group receivables that are considered a supplement to the net assets of the subsidiaries.
Financial items
Financial assets
All exchange rate adjustments are recognised in the income statement except exchange rate adjustments arising from:
The above currency translation differences are recognised directly in equity.
Assets and debt in foreign currencies are translated into Danish kroner at the exchange rates at the balance sheet date. Financial
statements of foreign subsidiaries are translated into Danish kroner at the exchange rates at the balance sheet date for the balance
sheet items and at average exchange rates for income statement items
Accounting basis
The Annual Report of the company is prepared in accordance with the Danish Financial Statements Act for a class B enterprise as well as
selected rules applying to reporting class C.
The accounting policies applied remain unchanged from last year.
The Annual Report is presented in DKK 1,000.
Translation of foreign currencies
In 2022, the company sold Novo Nordisk (Shanghai) Trading Co., LtD. to Novo Nordisk (China) Pharmaceuticals Co., Ltd. The transaction
has been accounted for in accordance with the “pooling of interests”-method, meaning that comparative figures for 2021 have been
restated. The assets and liabilities of the sold company has been de-recognised at book value as the transaction took place 1 January
2021. The effect hereof at the beginning of 2021 is an increase of the equity of DKK 75,397 thousand, which consist of -28,305 (invested
capital) 111,701 (sale price) and -7,999 (withholding tax). The effect hereof in 2021 is a decrease of assets of DKK 40,298 thousand, a
decrease of net profit of DKK 8,763 thousand and an increase of equity of DKK 63,404 thousand.
Administrative costs
Administrative costs comprise costs for the management and administration of the company, such as costs for audit fee, management,
office premises, office costs etc.
Financial income and expenses include interest income and expenses, realised and unrealised capital gains and losses on debt and
transactions in foreign currencies as well as amortisation of financial assets and liabilities. Financial income and expenses are recognised
by the amounts pertaining to the financial year.
Net revaluation of equity investments in subsidiaries exceeding the declared dividend of the subsidiaries is transferred to equity as net
revaluation reserve according to the equity method.
Investments in subsidiaries are recorded under the equity method, using the respective share of the net asset values in subsidiaries. The
equity method is used as a measurement basis rather than a consolidation method.
The share of profit in subsidiaries is recognised in the income statement of the parent company.
For business combinations in connection with the foundation of the company the acquisition method is used, resulting in a revaluation of
the acquired companies’ assets and liabilities and recognition of goodwill. This goodwill is amortised over a maximum period of 20 years,
based on life expectancy, and an impairment test is conducted annually.
Subsequent internal business combinations are recognised using the pooling of interests method, meaning that assets and liabilities are
recognised at the carrying amounts that would have applied if the Group relationship had been established at the beginning of the
comparative period, without any subsequent revaluation.
When using the pooling of interests method, there is no recognition of goodwill. The difference between the amount paid as capital and
the equity in the acquired company is recognised directly in equity.
Annual Report Page 10
Novo Nordisk Region China A/S
Accounting policies
Short-term debt
Short-term debt are measured at amortised cost.
Dividends
Proposed dividends (not yet declared) for the accounting period are recognised in the equity as proposed dividends.
Subsidiaries with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable
value based on a specific assessment. If the parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise,
and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs
necessary to settle the obligations at the balance sheet date.
Amounts owed by affiliated companies
Receivables are stated at amortised cost less write-downs for potential losses on doubtful debts. The write-downs are based on an
individual assessment of each debtor.
Tax
The company is jointly taxed with the Danish companies in the Novo Holdings A/S Group. The tax effect of the joint taxation with the
parent company and other subsidiaries is allocated to the companies in proportion to their taxable incomes (full allocation). The current
tax in the joint taxation is paid by the ultimate parent company, Novo Holdings A/S, which functions as the tax administration company.
The jointly taxed Danish enterprises have adopted the on-account taxation scheme.
Annual Report Page 11
Novo Nordisk Region China A/S
Notes
1 - Financial income 2022 2021
DKK '000 DKK '000
Interest income relating to affiliated companies 505 -
Foreign exchange rate gain (net) 1.424 -
Other financial income 4 -
Total financial income 1.933 -
2 - Financial expenses 2022 2021
DKK '000 DKK '000
Other financial expenses 58 3
Total financial expenses 58 3
3 - Proposed appropriation of net profit 2022 2021
DKK '000
DKK '000
Proposed dividends 105.160 -
Retained earnings (103.720) (22)
Distribution of net profit 1.440 (22)
4 - Share capital
The share capital consists of 5,000 shares of nominal value DKK 100.
5 - Contingencies
The company has no other contingent liabilities.
6 - Related parties and ownership
Controlling interests Basis
Novo Nordisk A/S, Novo Allé 1, 2880 Bagsværd, Denmark Principal shareholder, owns 100%
Novo Holdings A/S, Tuborg Havnevej 19, 2900 Hellerup, Denmark Controls Novo Nordisk A/S
Novo Nordisk Fonden, Tuborg Havnevej 19, 2900 Hellerup, Denmark Ultimate parent of the Group
The company is jointly taxed with the Danish companies in the Novo Holdings A/S Group. The joint taxation also covers withholding taxes
in the form of dividend tax, royalty tax and interest tax. The Danish companies are jointly and individually liable for the joint taxation. Any
subsequent adjustments to income taxes and withholding taxes may lead to a larger liability. The tax for the individual companies is
allocated in full on the basis of the expected taxable income.
The company is included in the consolidation financial statements of Novo Nordisk A/S and the ultimate parent company, Novo Nordisk
Fonden, in which Novo Nordisk Region China A/S is fully consolidated, can by ordered from Novo Nordisk A/S (CVR no. 24 25 67 90), Novo
Allé 1, 2880 Bagsværd, Denmark, and from Novo Nordisk Fonden (CVR no. 10 58 29 89), Tuborg Havnevej 19, 2900 Hellerup, Denmark.
Annual Report Page 12
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2022-01-012022-12-312021-01-012021-12-312023-05-17Søren FinkReporting class B2023-05-1724256790Novo Nordisk A/SNovo Allé 12880 BagsværdOpinionBasis for Opinion2023-05-17mne33716mne4510333963556Deloitte Statsautoriseret Revisionspartnerselskab337613332022-01-012022-12-31337613332022-01-012022-12-311337613332022-01-012022-12-312337613332021-01-012021-12-31337613332022-12-31337613332021-12-31337613332021-12-31fsa:ContributedCapitalMember337613332022-12-31fsa:ContributedCapitalMember337613332021-12-31fsa:RetainedEarningsMember337613332022-01-012022-12-31fsa:RetainedEarningsMember337613332022-12-31fsa:RetainedEarningsMember337613332021-12-31fsa:ProposedDividendRecognisedInEquityMember337613332022-01-012022-12-31fsa:ProposedDividendRecognisedInEquityMember337613332022-12-31fsa:ProposedDividendRecognisedInEquityMember337613332020-12-31fsa:ContributedCapitalMember337613332020-12-31fsa:RetainedEarningsMember337613332021-01-012021-12-31fsa:RetainedEarningsMember337613332020-12-31fsa:ProposedDividendRecognisedInEquityMember337613332020-12-31337613332022-01-012022-12-311337613332022-01-012022-12-311337613332022-01-012022-12-312337613332022-01-012022-12-313iso4217:DKK