Securities code: 002840 securities abbreviation: Zhejiang Huatong Meat Products Co.Ltd(002840) Announcement No.: 2022-020 Zhejiang Huatong Meat Products Co.Ltd(002840)
Announcement on the correction of accounting errors in the first quarter report of 2021, the semi annual report of 2021 and the third quarter report of 2021
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Huatong Meat Products Co.Ltd(002840) (hereinafter referred to as "the company") deliberated and adopted the proposal on correction of accounting errors in the first quarter report of 2021, the semi annual report of 2021 and the third quarter report of 2021 at the 17th meeting of the Fourth Board of directors. The company has corrected the accounting errors in the financial statements of the first quarter report of 2021, the semi annual report of 2021 and the third quarter report of 2021, It does not involve retroactive adjustment. The correction of accounting errors is described as follows:
1、 Causes, explanations and accounting treatment of accounting error correction
In order to encourage large-scale pig breeding enterprises to expand their breeding scale and increase production and ensure supply, the finance of Zhejiang province gives policy incentives to enterprises undertaking the task of increasing production and ensuring supply of pigs, and the company and its subsidiaries have successively received financial incentives of this nature. When receiving such government subsidy funds, the Finance Department of the company, based on the policy documents and fund allocation vouchers issued by the government, considers that such government subsidy funds belong to a one-time reward after the completion of production capacity or asset construction and pig introduction, and there are no clear requirements for the purpose of the funds in the policy documents, In this regard, the finance department will recognize such government subsidy funds as income related government subsidies and include them in the current "other income".
Recently, the financial department of the company found through self-examination that although these government subsidies belong to the one-time subsidy funds after the event, and the policy documents do not specify the purpose of the funds, considering that the prerequisite for the company to obtain these incentives is that the enterprise has built production capacity or assets, introduced breeding pigs, and received a large amount of such subsidies in 2021 and 2022, It has a great impact on the current profit and loss. Considering the principle of substance over form and prudence, these subsidies are recognized as government subsidies related to assets and included in "deferred income", and the early accounting treatment of these government subsidies is adjusted. Deferred income will be included in the current profit and loss by stages within the service life of relevant assets, which will increase the profit and loss of the corresponding period.
2、 The impact of accounting error correction on the company's financial position, operating results and cash flow
The specific impact of the above correction of accounting errors on the company's financial status, operating results, cash flow and other financial data in the first quarter, half year and third quarter of 2021 is as follows:
1. Consolidated balance sheet for the first quarter of 2021 (1)
March 31, 2021
Number of adjustments before adjustment
Deferred income 107569911.95 137724053.03 30154141.08
Total non current liabilities 2156559686.43 2186713827.51 30154141.08
Total liabilities 3474415021.63 3504569162.71 30154141.08
Undistributed profit 890532999.30 867930413.04 -22602586.26
Total owner's equity attributable to the parent company 1810328942.43 1787726356.17 - 22602586.26
Minority shareholders' equity 548318010.58 540766455.76 -7551554.82
Total owner's equity 2358646953.01 2328492811.93 -30154141.08
(2) Consolidated income statement
First quarter of 2021
Number of adjustments before adjustment
Other income 36428349.54 6274208.46 -30154141.08
Operating profit (loss expressed with "-") 132392821.19 102238680.11 -30154141.08
Total profit (loss expressed with "-") 131013783.69 100859642.61 -30154141.08
Net profit (loss expressed with "-") 116917621.01 86763479.93 -30154141.08
Including: net profit attributable to the owner of the parent company (deduct)
Non former) 100064582.14 77461995.88 -22602586.26
Minority shareholders' profit and loss (before deduction) 16853038.87 9301484.05 -7551554.82
(I) basic earnings per share 0.23 0.17 -0.06
(II) diluted earnings per share 0.23 0.17 -0.06
(3) Parent company statement
First quarter of 2021
project
Number of adjustments before adjustment
Deferred income 9269090.66 9754097.02 485006.36
Total non current liabilities 1015522199.02 1016007205.38 485006.36
Total liabilities 2191912327.42 2192397333.78 485006.36
Undistributed profit 531509373.83 531024367.47 -485006.36
Total owner's equity 1460179828.24 1459694821.88 -485006.36
Other income 1887000.00 1401993.64 -485006.36
Operating profit (loss expressed with "-") 80796810.27 80311803.91 -485006.36
Total profit (total loss expressed with "-") 80615225.93 80130219.57 -485006.36
Net profit (net loss expressed with "-") 71397934.26 70912927.90 -485006.36
(4) This correction has no impact on the cash flow statement in the first quarter of 2021.
2. Half year of 2021
(1) Consolidated balance sheet
Project June 30, 2021
Number of adjustments before adjustment
Long term accounts payable 223011631.79 224721631.79 1710000.00
Deferred income 101828239.76 158696489.05 56868249.29
Total non current liabilities 2365466749.06 242404998.35 58578249.29
Total liabilities 3861794487.36 3920372736.65 58578249.29
Undistributed profit 927176481.60 884556513.21 -42619968.39
Total owner's equity attributable to the parent company 1850037814.69 1807417846.30 -42619968.39
Minority shareholders' equity 666718168.01 650759887.11 -15958280.90
Total owner's equity 2516755982.70 2458177733.41 -58578249.29
(2) Consolidated income statement
Half year of the project in 2021
Number of adjustments before adjustment
Other income 76804355.86 18226106.57 -58578249.29
Operating profit (loss expressed with "-") 193506820.52 134928571.23 - 58,
