Shanxi Blue Flame Holding Company Limited(000968) : Announcement on government subsidies for wholly-owned subsidiaries

Securities code: 000968 securities abbreviation: Shanxi Blue Flame Holding Company Limited(000968) Announcement No.: 2021-072

Shanxi Blue Flame Holding Company Limited(000968)

Announcement on government subsidies for wholly-owned subsidiaries

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.

1、 Basic information of obtaining subsidies

Shanxi Lanyan coalbed methane Group Co., Ltd., a wholly-owned subsidiary of Shanxi Blue Flame Holding Company Limited(000968) (hereinafter referred to as "the company"), and its subsidiaries from November 6, 2021 to

On December 31, 2021, the accumulated government subsidy of 9089900.00 yuan was received, and the loss was recognized in the current period

The profit is 54605045.86 yuan, as follows:

Unit: Yuan

And capital

The project content document of the production / harvest unit is based on the collection time, the collection amount and the amount recognized in the current period

shut

Qin Caijing Zi

Liquidation [2021] No. 63 of 2020/

Degree unconventional Tianjin CAIJIAN 2020-06-132639800.0032964311.92 natural gas Zhongguo Cai [2020] No. 61 / 11

And the receipt of supplementary funds for Shanxi blue flame coal government award, Jinshi CAIJIAN

Yixianglayer Gas Group [2019] No. 91

Limited liability company

Clearing 2020 qincaijing Zi

Du Shanxi Province Cai [2021] No. 9 / -- 13301376.15 Zheng CBM Dingjin CAIJIAN

Subsidy fund [2020] No. 82

Liquidation 2020

Degree and pre dial

Fyj 2021-12-3934600.003609724.77 conventional natural gas [2021] No. 245 30 in 2021

Shanxi Xishan blue central finance Award

Supplementary funds for coal-bed methane

Limited liability company 2020 coal

Layer gas incremental gas concurrent with ggxz 2021-12-155200.00142385.32 shangchan project special [2021] No. 91 30

Item fund

Liquidation 2020

Shanxi Meijin Landu and pre allocated

The flame coalbed methane has the conventional natural gas [2021] No. 245 of the non Consolidated Financial Construction Co., Ltd. in 2021-12-9500.00-8715.60 30

Central finance Award

Supplementary funds

Liquidation 2020

Degree and pre dial

In 2021, fzcz 2021-12-4417000.004052293.58 conventional natural gas [2021] No. 671 10

Zuoquan blue flame coal central finance Award

Limited liability compensation fund for gas layer

Serve as the company's coal in 2020

Layer gas increment gas Zuo Cai Zi 2021-11-592600.00543669.72 shangchan project special [2021] No. 647 30

Item fund

Total 141729700.0054605045.86

2、 Types of subsidies and their impact on the company

1. The company conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 16 - government subsidies. The government subsidies related to assets refer to the government subsidies obtained by the enterprise for the purchase and construction or for the formation of long-term assets in other ways; Government subsidies related to income refer to government subsidies other than those related to assets. The government subsidies received this time are related to income.

2. In accordance with the accounting standards for Business Enterprises No. 16 - government subsidies and other relevant provisions, the central and provincial financial awards and subsidies for unconventional natural gas recognized by the company are expected to affect the total profit of this year

The amount is 53918990.82 yuan, and the confirmed special fund for incremental CBM production project is expected to affect the total profit of 686055.04 yuan this year.

3、 Other instructions

1. According to the requirements of the announcement of the State Administration of Taxation on canceling the certification and confirmation period of VAT deduction certificates and other VAT collection and management issues (Announcement No. 45 of the State Administration of Taxation in 2019), since January 1, 2020, the financial subsidy income obtained by taxpayers is directly linked to the income or quantity of goods, labor services, services, intangible assets and real estate sales, VAT shall be calculated and paid as required. Therefore, according to the requirements of the above provisions, the subsidiaries of the company shall recognize the profit and loss with the actually received financial reward and supplement funds for unconventional natural gas and the special funds specially used for incremental CBM production projects after deducting value-added tax (tax rate of 9%).

2. According to the notice of Jincheng Finance Bureau on Issuing the special fund budget for renewable energy development in 2020 in advance (Jin Shi Cai Jian [2019] No. 91), Shanxi Lanyan coalbed methane Group Co., Ltd. received the central financial subsidy fund of 132639800.00 yuan for unconventional natural gas in 2020 on June 11, 2020, The profit and loss is recognized with the amount of 121687889.91 yuan after deducting value-added tax (Announcement No. 2020-033). In December 2020, Jincheng Finance Bureau issued the notice of Jincheng Finance Bureau on Issuing the central financial subsidy fund for unconventional natural gas in 2020 (jscj [2020] No. 61), which redistributed the previously allocated central financial subsidy fund for unconventional natural gas in 2020, Shanxi Lanyan coalbed methane Group Co., Ltd. is determined to allocate an amount of 97497400.00 yuan in 2020, and the company reconfirmed the current profit and loss by deducting 89447155.96 yuan after value-added tax, The remaining 35229500.00 yuan of advance funds received in excess of the bonus and subsidy funds to be distributed in 2020 will be included in "other payables" (Announcement No. 2020-063). In December 2021, Qinshui County Finance Bureau issued the notice on Issuing the central financial subsidy fund for unconventional natural gas in 2021 (qincaijing Zi [2021] No. 63). The document redistributes and liquidates the previously allocated central financial subsidy fund for unconventional natural gas in 2020, and determines that the amount of incentive subsidy to be allocated is 133773400.00 yuan, The company will recognize the profit and loss with the amount of 35229500.00 yuan of advance bonus and subsidy received in 2020 and included in "other payables" after deducting value-added tax, and recognize the profit and loss with the amount of 701600.00 yuan of central financial subsidy and clearing fund for unconventional natural gas in 2020 after deducting value-added tax. At the same time, the above documents show that the central financial subsidy fund for unconventional natural gas in 2021 is 88132100.00 yuan (including tax), and the advance fund has not been received yet. Shanxi Lanyan coalbed methane Group Co., Ltd. determined the liquidation fund of 14498500.00 yuan in accordance with the notice of Qinshui County Finance Bureau on Issuing provincial financial awards and supplementary funds for unconventional natural gas in 2021 (qincaijing Zi [2021] No. 9) and the notice of Jincheng Finance Bureau on Issuing provincial financial awards and supplementary funds for unconventional natural gas in 2020 (jinshcaijian [2020] No. 82), The current profit and loss is recognized with the amount of 13301376.15 yuan after deducting value-added tax.

3. Shanxi Meijin Lanyan coalbed methane Co., Ltd. liquidated the central financial subsidy fund for unconventional natural gas in 2020 according to the notice of Taiyuan Municipal Bureau of Finance on Issuing the central financial reward and supplement fund for unconventional natural gas in 2021 (jcj [2021] No. 245), and determined the amount to be distributed of 85700.00 yuan, On September 8, 2020, the company has recognized the profit and loss according to the amount of 152800.00 yuan of central financial subsidy fund actually allocated in 2020 after deducting value-added tax. Therefore, 67100.00 yuan of central financial subsidy fund for unconventional natural gas in 2020 should be returned in this period and 61559.63 yuan of current profit and loss should be offset. At the same time, according to the document, the company received the central financial subsidy fund of 57600.00 yuan for unconventional natural gas in 2021 on December 30, 2021, and recognized the current profit and loss with the amount of 52844.04 yuan after deducting value-added tax. To sum up, the company shall return the central financial subsidy fund for unconventional natural gas of 9500.00 yuan to Taiyuan Energy Bureau and offset the current profit and loss of 8715.60 yuan accordingly. 4、 Risk tips

The final accounting treatment and affected amount shall be subject to the results confirmed by the accountant's annual audit. Please pay attention to investment risks.

5、 Documents for future reference

1. Government subsidy basis documents.

2. Collection voucher.

It is hereby announced.

Shanxi Blue Flame Holding Company Limited(000968) board of directors December 31, 2021

 

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