Securities Announcement No. 136
Announcement on change of accounting policies
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) (hereinafter referred to as “the company” or ” Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) “) reclassified the transportation costs incurred in the performance of customer sales contracts from “sales expenses” to “operating costs” from January 1, 2021 in accordance with the relevant provisions of the accounting department of the Ministry of finance of the people’s Republic of China (hereinafter referred to as “the Ministry of finance”) on the implementation of accounting standards for business enterprises, And retroactively adjust the relevant subjects of the 2020 financial statements. The change of accounting policy is not expected to have a significant impact on the financial report.
1、 Overview of changes in accounting policies
On November 2, 2021, the accounting department of the Ministry of Finance issued a question and answer on the implementation of accounting standards for business enterprises, It is clearly stipulated that “under normal circumstances, the transportation activities before the control of the enterprise’s goods or services is transferred to the customer and in order to perform the customer’s contract do not constitute a single performance obligation, and the relevant transportation costs shall be regarded as the contract performance costs, amortized on the same basis as the revenue of goods or services and included in the current profit and loss. The contract performance costs shall be included in the income statement “Operating cost” is listed in the item
2、 Accounting policies adopted before this change
Before this accounting policy change, the company listed the relevant transportation costs in the “selling expenses” item.
3、 Accounting policies adopted after this change
After this accounting policy change, the company listed the transportation costs incurred in performing the customer sales contract in the “operating cost” item in accordance with the relevant implementation Q & A regulations of the accounting department of the Ministry of finance.
4、 Main contents of this accounting policy change and its impact on the company
The main contents of this accounting policy change are:
For the transportation costs incurred before the control of goods is transferred to the customer and in order to perform the customer’s sales contract, the company reclassifies them from sales expenses to operating costs.
The main impacts on the company are as follows:
1. The transportation cost incurred for the performance of the sales contract is listed in the “operating cost” item, which is expected to have an impact on the company’s “gross profit margin” and other financial indicators, and will not have a significant impact on the financial statements and other important financial indicators.
2. The company will retroactively adjust the relevant subjects of the 2020 financial statements, and the specific adjustments are as follows:
The content of the change and the amount of the original affected statement items
Project Name: year 2020
Parent company of consolidated statement
For the transfer of control of goods to customers
The transportation costs incurred for the performance of the customer’s sales contract before the sales expenses of -25516620011 – 20253427485 households shall be included in the sales expenses
Operating costs 2551662001120253427485 are reclassified to operating costs.
5、 Concluding observations of independent directors, board of supervisors and Accountants
1. The independent directors believe that the change of accounting policy is a reasonable change in accordance with the relevant provisions of the accounting department of the Ministry of Finance on the implementation of Q & A. the changed accounting policy can objectively and fairly reflect the company’s financial situation and operating results without damaging the interests of the company and shareholders. The decision-making procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association. This change will not have a significant impact on the financial report. Therefore, we agree to the change of the company’s accounting policies.
2. The board of supervisors held that the change of accounting policy was made and adjusted according to the requirements of the accounting department of the Ministry of Finance for Q & A, in line with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shanghai Stock Exchange, and there was no damage to the interests of the company and shareholders. After the change of the company’s accounting policy, the company’s financial report can more objectively and fairly reflect the company’s financial situation and operating results, which is in line with the interests of the company and all shareholders.
3. PricewaterhouseCoopers Zhongtian Certified Public Accountants (special general partnership) for the company in accordance with the accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction The CSRC’s rules for the compilation and reporting of information disclosure by companies that offer securities to the public No. 19 – correction and related disclosure of financial information and the Shanghai Stock Exchange’s self regulatory guidelines for listed companies on the Shanghai Stock Exchange No. 1 – announcement format No. 93 – correction of accounting errors, changes in accounting policies or accounting estimates The special statement prepared in accordance with the requirements of the guidelines for self regulation and supervision of listed companies of Shanghai Stock Exchange No. 2 – business handling issued a special report of PWC Zhongtian teshen Zi (2022) No. 2124. The special report holds that: according to our working procedures, we have not found any inconsistency in all material aspects between the information contained in the special statement on changes in accounting policies for 2021 prepared by Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) and the accounting information and relevant contents disclosed in the financial statements when we audit the financial statements.
It is hereby announced.
Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) board of directors March 3, 2022
