Securities code: Meihua Holdings Group Co.Ltd(600873) securities abbreviation: Meihua Holdings Group Co.Ltd(600873) Announcement No.: 2022015 Meihua Holdings Group Co.Ltd(600873)
Announcement on changes in 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:
The change of accounting policy is to adjust the relevant contents of the original accounting policy in accordance with the provisions of the interpretation of accounting standards for Business Enterprises No. 15 (CK [2021] No. 35) issued by the Ministry of finance.
This accounting policy change will not make retroactive adjustment to the comparative financial statements and will not have a significant impact on the company’s financial statements.
Meihua Holdings Group Co.Ltd(600873) (hereinafter referred to as “the company”) held the 28th meeting of the 9th board of directors on March 11, 2021. The meeting deliberated and adopted the proposal on changes in accounting policies. The details are as follows:
1、 Overview of changes in accounting policies
(I) reasons for change
On December 30, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 15 (CAI Kuai [2021] No. 35) (hereinafter referred to as “Interpretation No. 15” or “interpretation”), which requires this interpretation “on the accounting treatment of the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the process of research and development” The content of “judgment on loss contract” shall come into force as of January 1, 2022. According to the interpretation requirements, the company will implement Interpretation No. 15 from January 1, 2022.
(II) specific content of change
1. Accounting policies implemented before this accounting policy change
Before the change of accounting policy, the company implemented the accounting standards for business enterprises – Basic Standards and 38 specific accounting standards issued by the Ministry of Finance on February 15, 2006, the accounting standards for business enterprises issued and revised before the change of the new accounting standards, the application guide of accounting standards for business enterprises, the interpretation announcement of accounting standards for business enterprises and other relevant regulations. 2. Accounting policies implemented after this accounting policy change
After this accounting policy change, the company will implement the interpretation of accounting standards for Business Enterprises No. 15 issued by the Ministry of Finance in 2021. The remaining unchanged parts shall still be implemented in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation announcement of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance in the early stage.
2、 Specific situation and impact on the company
According to the requirements of Interpretation No. 15, with regard to the accounting treatment of the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the process of research and development, the enterprise shall make retroactive adjustment in accordance with the provisions of this interpretation for the trial operation sales between the beginning of the earliest period for the presentation of the financial statements in the first implementation of this interpretation and the implementation date of this interpretation; If the retroactive adjustment is not feasible, the enterprise shall apply the provisions of this interpretation from the beginning of the earliest period of retroactive adjustment, and disclose the specific reasons for the failure of retroactive adjustment in the notes. With regard to the judgment of loss making contracts, the enterprise shall implement this interpretation for contracts that have not fulfilled all obligations at the time of the first implementation of this interpretation. The cumulative impact shall be adjusted for the retained earnings and other relevant financial statement items at the beginning of the year when this interpretation is first implemented, and the data of comparative financial statements in the previous period shall not be adjusted.
Since January 1, 2022, the company has implemented the relevant provisions of the interpretation of accounting standards for Business Enterprises No. 15. In combination with the company’s business on the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the process of research and development, it is necessary to retroactively adjust and compare the data of the financial statements, which is not expected to have a significant impact on the company’s financial statements. The judgment on loss contracts is not expected to have a significant impact on the company’s financial statements.
3、 Opinions of independent directors and board of supervisors
The independent directors of the company believe that the change of the company’s accounting policy is a reasonable change according to the requirements of relevant documents of the Ministry of finance, in line with relevant regulations and the actual situation of the company, and the decision-making procedures comply with relevant laws, regulations and the articles of association, which will not harm the interests of minority shareholders. They agree with the change of the company’s accounting policy.
The board of supervisors of the company believes that the accounting policy change of the company complies with the relevant notice requirements issued by the Ministry of finance, the provisions of laws, regulations and relevant documents of the Ministry of finance, and the decision-making procedures comply with relevant laws, regulations and the articles of association.
4、 Documents for future reference
1. Resolutions of the 28th meeting of the 9th board of directors 2 Resolution of the 16th meeting of the 9th board of supervisors 3 The special instructions and independent opinions of independent directors on relevant matters considered by the board of directors are hereby announced.
Meihua Holdings Group Co.Ltd(600873) board of directors March 11, 2022
