iso4217:DKK364543852021-01-012021-12-31cmn:ConsolidatedMember364543852021-01-012021-12-311cmn:ConsolidatedMember364543852021-01-012021-12-311cmn:ConsolidatedMember364543852021-01-012021-12-312cmn:ConsolidatedMember364543852021-01-012021-12-313cmn:ConsolidatedMember364543852021-01-012021-12-312cmn:ConsolidatedMember364543852020-01-012020-12-31cmn:ConsolidatedMember364543852021-01-012021-12-31364543852020-01-012020-12-31364543852021-01-012021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember364543852020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember364543852020-01-012020-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:RetainedEarningsMember364543852021-01-012021-12-31fsa:RetainedEarningsMember364543852020-01-012020-12-31fsa:RetainedEarningsMember364543852021-12-31cmn:ConsolidatedMember364543852020-12-31cmn:ConsolidatedMember364543852021-12-31364543852020-12-31364543852021-01-01cmn:ConsolidatedMember364543852020-01-01cmn:ConsolidatedMember364543852021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember364543852021-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember364543852021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember364543852021-01-01fsa:EquityAttributableToParentMembercmn:ConsolidatedMember364543852021-01-01fsa:MinorityInterestsMembercmn:ConsolidatedMember364543852021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember364543852021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember364543852021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember364543852021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember364543852021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember364543852021-01-01fsa:ContributedCapitalMember364543852021-01-01fsa:RetainedEarningsMember364543852021-01-01364543852021-12-31fsa:ContributedCapitalMember364543852021-12-31fsa:RetainedEarningsMember364543852021-01-012021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember364543852021-01-012021-12-31fsa:ContributedCapitalMemberGrundlag for konklusionKonklusion33963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01Topcap Broen-Lab ApS36454385ÅrsrapportKøbenhavn S23006WeidekampsgadeAssensAssens5610<br /><br />2DrejervængetThe Executive Board has today considered and approved the annual report of Topcap Broen-Lab ApS for the financial year 01.01.2021 - 31.12.2021. The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.Assens2022-03-14Steven Allen KerstenHenning Birk NicolajsenLucas Aaron BealsCEOdirectordirectorTo the shareholders of Topcap Broen-Lab ApSWe have audited the consolidated financial statements and the parent financial statements of Topcap Broen-Lab ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements are prepared in accordance with the Danish Financial Statements Act. ​ ​In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 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 consolidated financial statements and the parent financial statements" section of this auditor’s report. We are independent of the Group 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 consolidated financial statements and parent 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 consolidated financial statements and parent financial statements that are free from material misstatement, ​whether due to fraud or error. ​ ​In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and 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 consolidated financial statements and the parent 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 consolidated financial statements and the parent 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 consolidated financial statements and parent financial statements. ​ ​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:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent 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. <br />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 Group's and the Entity’s internal control. <br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates ​and related disclosures made by Management. <br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in ​preparing the consolidated financial statements and the parent 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 Group's and 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 consolidated financial statements and the parent 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 Group and the ​Entity to cease to continue as a going concern. <br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures ​in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and ​events in a manner that gives a true and fair view.<br />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 consolidated financial statements and the parent 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 consolidated financial statements and the parent financial statements, our responsibility is to read the management ​commentary and, in doing so, consider whether the management commentary is materially inconsistent with ​the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. ​Moreover, it is our responsibility to consider whether the management commentary provides the information ​required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with ​the consolidated financial statements and the parent 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.Odense2022-03-14Bjørn Winkler JakobsenHenrik Hartmann Olesenmne32127mne34143State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021 DKK'0002020 DKK'0002019 DKK'0002018 DKK'0002017 DKK'000Key figuresGross profit/loss81,25762,88859,54856,67568,905Operating profit/loss7,6336,3671,9174906,524Net financials(222)(1,903)(1,849)(1,336)(2,394)Profit/loss for the year5,7503,151(81)(787)2,771Profit for the year excl . minority interests4,2512,320(75)(617)2,086Balance sheet total152,270139,110145,617167,018169,349Investments in property, plant and equipment9734734,8902,2542,693Equity85,83080,19477,24575,57877,220Equity excl. minority interests63,80259,63657,46557,48158,747RatiosReturn on equity (%)6.893.96(0.13)(1.06)3.66Equity ratio (%)41.9042.8739.4634.4234.69In 2019, Broen-Lab A / S has implemented IFRS 16, without changing comparative figures, which is why lack of comparability between the key figures and key figures from 2017 and 2018. Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on equity (%) :Profit/loss for the year excl. minority interests * 100 ​Average equity excl. minority interestsEquity ratio (%) :​Equity excl. minority interests * 100 ​Balance sheet totalPrimary activitiesThe Group's primary activity is the manufacture, trade and servicing of laboratory fittings and emergency showers used in professional laboratories, the educational sector and in the industry.Development in activities and financesOn December 10, 2021, the Group was acquired (100%) by the US-based LI Enterprises LLC. The Group's activities and strategy continue with headquarters and management in Assens on Funen. The Group realized an EBITDA of tDKK 32,090 before recognition of non-recurring costs in connection with the acquisition of the Group - an improvement of 78% compared to 2020. The profit for the year (before nonrecurring costs) was tDKK 20,103 compared with tDKK 3,151 in 2020. At the end of the financial year, equity amounts to tDKK 85,830. In contrast to 2020, which was much affected by the COVID-19 situation, the Group experienced large growth in all market regions in 2021. The total revenue growth was 24% compared to 2020. The significant growth was realized through the continued strategic sales focus in selected market areas and also a general market growth in especially the laboratory activities, where most markets experienced an increased demand driven by new investments in laboratories as well as renovation and capacity increases. The Group's ability to be able to deliver an exceptionally short delivery time and quality to customers despite the global raw material and freight challenges has also contributed to the growth in revenue. The Group has continued the recent years focus on streamlining the business processes. Production efficiency has increased compared to 2020, despite increased challenges in dealing with the impacts of the COVID-19 pandemic. Again in 2021, all employees contributed in the best way to ensure that the Group's operations were not affected by COVID-19 outbreaks or by failures in supply chains so that the ability to deliver to customers could be maintained at a high level. Despite the growth in revenue, the total operational costs have been maintained at roughly the same nominal level as in 2020 and thereby contributing to the growth in earnings. The Group's cash flow before financing and non-recurring costs improved despite larger financing of inventories and receivables – the improvement is primary caused by the increase in operational earnings. The Group’s liquid funds are regarded sufficient. No dividends will be distributed to shareholders. T he Group's overall result is considered very satisfactory.Profit/loss for the year in relation to expected developmentsProfit for the year is higher as expected.OutlookThe Group expects further growth in the main markets and in combination with a focused sales strategy, revenues are expected to grow for the coming years. Hence the group expect profit for 2022 to be at the same level as profit for 2021 after normalizing for nonrecurring items related to sale of BROEN-LAB A/S. Knowledge resourcesInvestments are made on an ongoing basis in the development of employee competencies.Research and development activitiesThe group does not conduct definite research, but ongoing product development is carried out through it’s own organization812565526288784873052786927507663185674959380735512850076327076366534-35512-850096889478782411905272690682741330194741107444636764241063231829416610831313129-9443-18275749991315054704250506425050614994854250506232012214994858304254250506232012142505064250506232012124421652829618525076670010214729324602990164983551699825778155026068210258107822130886475748116301021206658718707692225176316349441831005500055000167193651852986394940673105005611640341635983474110250837992799043179292143675596436919951743859313712128184242381400230414161181293583123971011406172108006616436504743146487118810261395614139561411643608149834592573289203410477375812994631522695931391103846410997559934204767500767500767500767500-39797447696307421158823705630344145886847463801914596359742202824620558089858301608019406376750044769588237055963597420558088767500-3979763074211638019142202824680194062638019145963597476750058868474596359747675006303441498054898275789980548982757890763610982794411484042008200400287394920909948116584627500001040822853204854314815842274170937043945190182051551093699035000375003572399638982070308061298230566339445064053230806129823015226959313911038464109975599342040-845660-84566-29327-1138930-84566-845661179927911643686-596045633176621347153021327882968894787824-1190527-28538922631365732821351303319835096-1028416-1034331-97704-140201-1126120-117453212386913186605642419190-17856716-163480312008200402467207-163480311485412023125331881026139561411 Events after the balance sheet dateNo events have occurred after the balance sheet date to this date which would influence the evaluation of this annual report1 Events after the balance sheet dateNo events have occurred after the balance sheet date to this date which would influence the evaluation of this annual report2 Staff costs2021 DKK2020 DKKWages and salaries54,594,75639,861,212Pension costs2,528,1002,389,634Other social security costs653,668519,393Other staff costs3,672,3141,268,77461,448,83844,039,013Special incentive programmesIn connection with the sale of BROEN-LAB A / S, the Executive Board has been paid a bonus of DKK 11.311 thousand. The bonus is recognized in 2021.3 Tax on profit/loss for the year2021 DKK2020 DKKCurrent tax394,5190Change in deferred tax1,529,7001,308,615Adjustment concerning previous years(263,136)4,5141,661,0831,313,1294 Proposed distribution of profit/loss2021 DKK2020 DKKRetained earnings4,250,5062,320,122Minority interests' share of profit/loss1,499,485830,4255,749,9913,150,5472 Proposed distribution of profit and loss2021 DKK2020 DKKRetained earnings4,250,5062,320,1214,250,5062,320,1215 Intangible assetsCompleted development projects DKKAcquired patents DKKAcquired licences DKKGoodwill DKKDevelopment projects in progress DKKCost beginning of year5,372,56817,502,55110,323,376102,103,955606,821Transfers472,404025,8100(162,319)Additions00347,3310371,000Cost end of year5,844,97217,502,55110,696,517102,103,955815,502Amortisation and impairment losses beginning of year(2,610,135)(10,501,530)(4,293,476)(32,121,577)0Amortisation for the year(792,672)(1,750,255)(1,673,717)(4,998,827)0Amortisation and impairment losses end of year(3,402,807)(12,251,785)(5,967,193)(37,120,404)0Carrying amount end of year2,442,1655,250,7664,729,32464,983,551815,502Prepayments for intangible assets DKKCost beginning of year25,810Transfers(25,810)Additions0Cost end of year0Amortisation and impairment losses beginning of year0Amortisation for the year0Amortisation and impairment losses end of year0Carrying amount end of year0Completed development projects DKKAcquired patents DKKAcquired licences DKKGoodwill DKKDevelopment projects in progress DKKCost beginning of year5,372,56817,502,55110,323,376102,103,955606,821Transfers472,404025,8100(162,319)Additions00347,3310371,000Cost end of year5,844,97217,502,55110,696,517102,103,955815,502Amortisation and impairment losses beginning of year(2,610,135)(10,501,530)(4,293,476)(32,121,577)0Amortisation for the year(792,672)(1,750,255)(1,673,717)(4,998,827)0Amortisation and impairment losses end of year(3,402,807)(12,251,785)(5,967,193)(37,120,404)0Carrying amount end of year2,442,1655,250,7664,729,32464,983,551815,502Prepayments for intangible assets DKKCost beginning of year25,810Transfers(25,810)Additions0Cost end of year0Amortisation and impairment losses beginning of year0Amortisation for the year0Amortisation and impairment losses end of year0Carrying amount end of year06 Development projectsDevelopment projects relate to the development of new products. It is prior to the start of the projects prepared calculations which show that the projects are expected to lead to increased revenue and earnings in the company. The ongoing development projects are expected to be completed in 2022.7 Property, plant and equipmentLand and buildings DKKPlant and machinery DKKOther fixtures and fittings, tools and equipment DKKProperty, plant and equipment in progress DKKCost beginning of year14,535,5434,093,7259,481,65055,000Transfers00(870,683)0Additions097,704875,3230Disposals00(823,097)0Cost end of year14,535,5434,191,4298,663,19355,000Depreciation and impairment losses beginning of year(2,468,956)(1,868,549)(5,324,487)0Transfers00661,6440Depreciation for the year(436,485)(452,111)(1,583,991)0Reversal regarding disposals00747,1350Depreciation and impairment losses end of year(2,905,441)(2,320,660)(5,499,699)0Carrying amount end of year11,630,1021,870,7693,163,49455,0008 PrepaymentsPrepayments comprises accrued of costs. 9 CashCash and cash equivalents include a deposit account of DKK 600 thousand. The amount is not available for daily use.10 Contributed capitalNumberPar value DKKRecorded par value DKKA-Shares759,8251.00759,825B-Shares7,6751.007,675767,500767,50011 Deferred tax ​Changes during the year2021 DKK2020 DKKBeginning of year8,275,7896,945,959Recognised in the income statement1,529,7001,329,830End of year9,805,4898,275,78911 Deferred tax12 Non-current liabilities other than provisionsDue within 12 months 2021 DKKDue within 12 ​months 2020 DKKDue after more than 12 months 2021 DKKMortgage debt0430,0220Bank loans08,740,2160Lease liabilities750,0001,237,990827,944Payables to group enterprises0020,082,004750,00010,408,22820,909,94813 Changes in working capital2021 DKK2020 DKKIncrease/decrease in inventories(3,726,465)(1,696,257)Increase/decrease in receivables(4,643,562)(271,030)Increase/decrease in trade payables etc.2,409,5715,284,949(5,960,456)3,317,66214 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report.​ No such transactions were conducted during the financial year.7 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report.​ No such transactions were conducted during the financial year.15 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group: Topcap Broen-lab ApS, CVR.nr: 36454385, Drejervænget 2, 5610 Assens Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Broen-lab A/S, CVR.nr: 36454423, Drejervænget 2, 5610 Assens 16 SubsidiariesRegistered inCorporate ​formOwnership ​​%Broen-lab Singapore PTE. LTD.SingaporeLTD74.25Broen-lab LTD.United KingdomLTD74.25Broen-lab GmbH VertiebsgesellschaftTysklandGmbH74.25Broen-lab Sverige ABSverigeAB74.25Broen-lab USA LLCUSALLC74.2542839882354755022336403416359834741640341635983474174314648712730612607303 Financial assetsInvestments in group enterprises DKKAdditions71,800,000Cost end of year71,800,000Revaluations beginning of year(11,965,259)Exchange rate adjustments(84,566)Amortisation of goodwill(39,771)Share of profit/loss for the year4,323,759Revaluations end of year(7,765,837)Carrying amount end of year64,034,163A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.4 Deferred tax ​Changes during the year2021 DKK2020 DKKBeginning of year64,87163,044Recognised in the income statement9,4431,827End of year74,31464,871​Deferred tax assetsBased on budgets, management expects to be able to utilize tax assets within a 3-5 year period. 5 Contingent liabilitiesThe Entity serves as the administration company in a Danish joint taxation arrangement. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc. for the jointly taxed entities, and also for obligations, if any, relating to the withholding of tax on interest, royalties and dividends for these entities.6 Related parties with controlling interestRelated parties with a controlling influence on Topcap Broen-Lab ApS: LI Enterprises LLC, 850 New Burton Road, Suite 201, Dover 19904 Delaware, USAThis annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic ​benefits will flow to the Entity, and the value of the asset can be measured reliably. ​ ​Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a ​result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the ​value of the liability can be measured reliably. ​ ​On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial ​recognition is effected as described below for each financial statement item. ​ ​Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm ​or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and ​measurement. ​ ​Income is recognised in the income statement when earned, whereas costs are recognised by the amounts ​attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence. Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling, influence are regarded as associates.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies. Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Minority interests’ pro rata shares of the profit/loss and the net assets are disclosed as separate items in Management's proposal for the distribution of net profit/loss and equity, respectively. Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the acquisition date, with net assets having been calculated at fair value.Gross profit or lossGross profit or loss comprises revenue, production costs and other operating income.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement ​when delivery is made and risk has passed to the buyer. Production costsProduction costs comprise expenses incurred to earn revenue for the financial year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and salaries, rent and lease, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment included in the production process. In addition, the item includes ordinary writedown of inventories. ​Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary inventory writedowns.Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages ​and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc., and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment involved in the distribution process.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages and salaries for administrative staff and Management, stationery and office supplies, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment used for ​administration of the Entity.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses. ​Other financial income from group enterprisesOther financial income from group enterprises comprises interest income etc. on receivables from group enterprises.<br />Other financial incomeOther financial income comprises interest income, including ​interest income on receivables from group enterprises, net capital or exchange gains on securities, payables ​and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish ​Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group ​enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, ​amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the ​income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.all of its Danish group enterprises. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with a refund concerning tax losses).GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. The amortisation periods used are 20 years. ​ ​Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate ​of utilisation, adequate resources and a potential future market or development opportunity in the enterprise ​can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income ​statement as incurred. When recognising development projects as intangible assets, an amount equalling ​the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced ​as the development projects are amortised and written down. ​​ ​​The cost of development projects comprises costs such as salaries and amortisation that are directly and ​indirectly attributable to the development projects. ​ ​​Completed development projects are depreciated on a straight-line basis over the expected useful life. The depreciation period is 5 year. For development projects protected by intellectual property rights, the maximum depreciation period the remaining term of the rights in question. Development projects are written down to recoverable amount if it is lower than the carrying amount. Acquired intellectual property rights are measured at cost less accumulated amortization. Acquired licenses are depreciated on a straight-line basis over the expected useful life. The depreciation period is 3 years, however, a maximum the remaining term of the rights in question. Acquired patents are measured at cost less accumulated amortization. Patents are amortized on a straight-line basis over the remaining patent period, and licenses are amortized on a straight-line basis the agreement period of 10 years. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.​ Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount. Property, plant and equipmentLand and buildings, plant and machinery, and other fixtures and fittings, tools and equipment are ​measured at ​cost less accumulated depreciation and impairment losses. Land is not depreciated. ​​ ​​Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the ​asset until the time when it is ready to be put into operation. For assets held under finance ​leases, cost is the lower of the asset’s fair value and present value of future lease payments. ​ ​ ​ ​The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:Buildings30 yearsPlant and machinery10 yearsOther fixtures and fittings, tools and equipment3-5 years ​Estimated useful lives and residual values are reassessed annually. ​ ​Items of property, plant and equipment are written down to the lower of recoverable amount and carrying ​amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised goodwill and plus or minus unrealised intra-group profits or losses. Reference is made to the above section on business combinations for more details about the accounting policies applied to acquisitions of investments in group enterprises. ​ ​Group enterprises 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. ​ ​Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to the reserve for net revaluation according to the equity method in equity. ​ ​Goodwill is the difference between cost of investments and fair value of the pro rata share of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. The amortisation periods used are 20 years. ​ ​Investments in group enterprises are written down to the lower of recoverable amount and carrying amount. ​ InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value. ​ ​Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists ​of costs of raw materials, consumables, direct labour costs and indirect production costs. ​ ​Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation ​on machinery, factory buildings and equipment used in the manufacturing ​process, and costs of factory administration and management. Finance costs are not included in cost. ​The net realisable value of inventories is calculated as the estimated selling price less completion costs and ​costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and ​doubtful debts.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset. However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and temporary differences arising at the date of acquisition that do not result from a business combination and that do not have any effect on profit or loss or on taxable income. ​ ​Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at ​their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at ​cost.CashCash comprises cash in hand and bank deposits.Minority interestsOn initial recognition, minority interests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority interests’ equity interests in the acquiree is recognised.Mortgage debtAt the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds ​to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at amortised cost. This means that the difference between the proceeds at the time of borrowing and the nominal repayable amount of the loan is recognised in the income statement as a financial expense over the term of the loan applying the effective interest method.<br />Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Lease liabilitiesA leasing asset and a leasing obligation are recognized in the balance sheet in accordance with the provisions of IFRS 16 when the company in pursuant to a entered into leasing agreement regarding a specifically identifiable asset, the leasing asset shall be pledged available during the lease term and when the company acquires the right to virtually all the financial benefits from its use identified asset and the right to decide (control) over the use of the identified asset. Leasing obligations is measured on initial recognition at the present value of the future lease payments discounted by one alternative borrowing rate. The leasing obligation is measured at amortized cost using the effective interest method. The lease obligation recalculated when there are changes in the underlying contractual cash flows from changes in an index or an interest rate. The leasing asset is measured on initial recognition at cost, which corresponds to the value of the leasing obligation. Subsequently, the asset is measured at cost less accumulated amortization and impairment losses. The leasing asset is depreciated over the shorter of the leasing period and the useful life of the leasing asset. Depreciation is recognized on a straight - line basis in the income statement. The leasing asset is adjusted for changes in the leasing obligation as a result of changes in the terms of the leasing agreement or changes in the cash flows of the contract in line with changes in an index or an interest rate. Leasing assets are amortized on a straight-line basis over the expected lease period, which amounts to: Production plant and machinery 10 years Other plants, operating equipment and fixtures and fittings 3-5 years The company has chosen not to recognize low-value leasing assets and short-term leasing agreements in the balance sheet. Instead, leasing payments relating to these leasing agreements are recognized on a straight-line basis in the income statement.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the ​goods agreed or completion of the service agreed.Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's ​taxable income, adjusted for prepaid tax.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash ​and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating ​profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of ​ enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, ​etc. of intangible assets and property, plant and equipment. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital ​and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend. ​ ​Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short- term bank loans. The cash flow statement shows cash flows from operating, investing and financing activities, and cash ​and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating ​profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of ​ enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, ​etc. of intangible assets and property, plant and equipment. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital ​and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend. ​ ​Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short- term bank loans. 2022-03-14Xin Zhuo