Reply to inquiry letter of Shenzhen Stock Exchange
Securities code: 000655 securities abbreviation: Shandong Jinling Mining Co.Ltd(000655) Announcement No.: 2021-090 Shandong Jinling Mining Co.Ltd(000655)
Announcement on reply to inquiry letter of Shenzhen Stock Exchange
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. Shenzhen Stock Exchange:
Our company received the inquiry letter on Shandong Jinling Mining Co.Ltd(000655) sent by you on December 22, 2021 (inquiry letter of the company Department [2021] No. 221). The company attaches great importance to it and organized personnel to carefully check relevant issues with Dahua Certified Public Accountants (special general partnership), the annual audit accountant. The reply is as follows:
1. The announcement shows that your company has printed and distributed the implementation plan of Shandong Province in accordance with the guiding opinions on the socialized management of retirees from state-owned enterprises (office Zi [2019] No. 19) issued by the general office of the CPC Central Committee and the general office of the State Council (hereinafter referred to as "document 19") and the general office of the CPC Shandong Provincial Committee and the general office of the Shandong Provincial People's government
<关于国有企业退休人员社会化管理的指导意见>
Notice of implementation plan of (luting Zi [2019] No. 90) spirit and work requirements, make a one-time provision for the out of plan expenses that meet the relevant provisions to the existing retirees before the implementation of enterprise annuity. Please explain the reasons and rationality for your company's failure to accrue the above expenses in 2019, whether it is an accounting error, and explain whether there is cross period provision in combination with the net profit level of your company from 2019 to now To avoid losses.
Answer:
1、 Policy basis
(i) National policy documents and relevant regulations
According to the general office of the CPC Central Committee The guiding opinions on the socialized management of retirees from state-owned enterprises (office Zi [2019] No. 19) (hereinafter referred to as "document 19") issued by the general office of the State Council requires: "properly solve the problem of out of plan expenses of retirees from state-owned enterprises in accordance with the principles of new methods for new people, old methods for the elderly, overall consideration and gradual digestion" "The state-owned enterprises can accrue the out of plan expenses of the existing retirees that meet the relevant provisions at one time and distribute them in the existing way; if conditions permit, the enterprises can also pay them at one time with reference to the average life expectancy of the population in the city where they are located after consultation with the retirees", "state-owned enterprises should take
Reply to inquiry letter of Shenzhen Stock Exchange
A certain transition period method, on the basis of strengthening the unified and standardized management of employees' wages and benefits, gradually reduce the out of plan expenses of newly handled retirees, and the transition period shall not exceed 3 years in principle ".
(2) Relevant policies and documents of Shandong Province
The state owned assets supervision and Administration Commission of Shandong Provincial People's Government (hereinafter referred to as "Shandong SASAC") issued the requirements of the notice on printing and distributing the answers to questions related to the socialized management of retirees of state-owned enterprises in the province (Luguo Zi Qi Gai Zi [2020] No. 12) on May 25, 2020 (hereinafter referred to as "No. 12 document") "In principle, the transition period shall not exceed 3 years. The starting time of the transition period shall not be later than the end of 2020."
On November 5, 2020, Shandong SASAC issued the notice of Shandong SASAC on investigating the out of plan expenses of provincial enterprises (Bian Han [2020] No. 155), requiring provincial enterprises to classify the out of plan expenses of retirees, complete the investigation and statistics of distribution on this basis, and submit it to Shandong SASAC.
2、 Project implementation and approval
According to the No. 12 document of Shandong SASAC, the company has transferred the management and service functions, personnel files and party organization relations of all retirees who have not yet implemented socialized management to the streets and communities for socialized management by the end of 2020.
The fourth meeting (temporary) of the ninth board of directors and the third meeting (temporary) of the ninth board of supervisors held by the company on December 13, 2021 deliberated and adopted the proposal on one-time provision of out of plan expenses and dismissal benefits.
3、 Description of the company on one-time withdrawal of out of plan expenses in 2021
(i) Reasons for not withdrawing out of plan expenses in 2019
1. Reasons for not withdrawing out of plan expenses at one time in 2019. Shandong SASAC issued document No. 12 in May 2020. As a state-controlled listed company, the company also needs to implement it according to the time requirements of Shandong SASAC, and the basis for implementing the accrual policy in 2019 is not rigorous enough; The company has not implemented the socialized management of retirees in 2019, and does not meet the conditions for the implementation of accrual in 2019.
2. According to the profit level from 2019 to now: according to the release time of Document No. 12 and the fact that the company has not implemented the socialized management of retirees in 2019, the conditions for one-time accrual are not met in 2019; In 2020, the company realized a total profit of RMB 287 million and a net profit attributable to shareholders of the parent company of RMB 230 million, According to the one-time provision of 225 million yuan of out of plan expenses (216 million yuan of out of plan expenses are expected in 2021), calculated according to the discount rate used by the actuarial institution of 3%, the provision expenses at the end of 2020 should be 209.7 million yuan (2.16 / 1.03), plus about 15.6413 million yuan of out of plan expenses actually borne from January to November 2021, so
Reply to inquiry letter of Shenzhen Stock Exchange
It is estimated that the one-time provision of out of plan expenses at the end of 2020 should be RMB 225 million), which will not cause losses in 2020, and there is no cross period provision to avoid losses.
(2) Rationality of the company's one-time withdrawal of out of plan expenses in 2021
1. From the perspective of time, according to the requirements of Document No. 12, if the transition period starts in 2019, the company shall complete the implementation by the end of 2021; if the transition period starts in 2020, the company shall complete the implementation by the end of 2022. The company's provision of unplanned expenses at the end of 2021 meets the above time requirements. The indirect controlling shareholder Shandong Iron And Steel Company Ltd(600022) Group Co., Ltd. of the company decided in December 2021 to withdraw the out of plan expenses at one time in accordance with the spirit of Document No. 19. As a listed company controlled by the company, the company decided to implement it by reference in 2021 and perform the procedures of listed companies. It is planned to convene a general meeting of shareholders on December 29, 2021 to consider the matter.
To sum up, the company's provision of out of plan expenses for retirees in 2021 meets the requirements of relevant national policies and regulations and accounting standards for business enterprises, does not belong to accounting errors, and there is no cross period provision to avoid losses. Accountant's verification and opinions:
In view of the above matters, the accountant mainly carried out the following verification work:
(i) Read the company's announcement and relevant instructions, and understand the company's policy basis and data source for withdrawing out of plan expenses in 2021;
(2) Check and study relevant policy documents to judge whether the company's policy basis for withdrawing out of plan expenses in 2021 is sufficient;
(3) Check the relevant resolutions of the company's board of directors to judge whether the relevant resolution process of the company's accrual of out of plan expenses is perfect;
(4) Check the actuarial report issued by the actuarial institution and the data of the actually undertaken out of plan expenses in the current period to determine the accuracy of the provision of out of plan expenses;
(5) Analyze whether the company has the motivation to withdraw across periods to avoid losses.
After implementing the above verification procedures, we believe that there is no cross period provision to avoid losses, which is not an accounting error.
2. Please explain whether the expense is accrued at one time and whether it will happen again in the future. If it will happen again, please explain the accrual frequency and its impact on the company's subsequent annual performance.
A: according to the requirements of Document No. 19, "state owned enterprises shall carefully clean up and classify the existing out of plan expenses of retirees, no new out of plan items will be added, and the payment standard will not be raised in principle. Enterprises that have implemented enterprise annuity will not pay out of plan expenses." "The personnel who handle retirement after the expiration of the transition period shall be in accordance with the requirements of the enterprise
Reply to inquiry letter of Shenzhen Stock Exchange
The treatment that should be enjoyed by the relevant provisions of the government at or above the municipal level in the region shall be paid by the enterprise in a lump sum, and the enterprise will no longer pay out the expenses outside the overall planning. " The company's one-time accrual of out of plan expenses is for the retired employees before the implementation of enterprise annuity. The subsequent retired employees will no longer pay out of plan expenses. This accrual is a one-time accrual.
Accountant's verification and opinions:
In view of the above matters, the accountant mainly carried out the following verification work:
(i) Check and study relevant policy documents to judge whether the company's policy on withdrawing out of plan expenses should be one-time withdrawal;
(2) Interview the company's subsequent arrangements for retired employees and ask whether the company has implemented the enterprise annuity plan. After implementing the above verification procedures, we believe that this provision is a one-time provision. We will pay attention to the company's reply to your inquiry letter as the company's commitment and implement the corresponding audit procedures.
Shandong Jinling Mining Co.Ltd(000655)
Board of directors
December 29, 2021