Maanshan Iron & Steel Company Limited(600808) : Maanshan Iron & Steel Company Limited(600808) announcement on changes in accounting policies

Stock Code: Maanshan Iron & Steel Company Limited(600808) stock abbreviation: Maanshan Iron & Steel Company Limited(600808) Announcement No.: pro 2022018 Maanshan Iron & Steel Company Limited(600808)

Announcement on changes in accounting policies

Maanshan Iron & Steel Company Limited(600808) (“the company” or “the company”) the board of directors and all directors 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.

1、 Overview of changes in accounting policies

(I) reasons for this accounting policy change

In the question and answer on the implementation of the fifth batch of accounting standards for business enterprises in 2021 issued by the accounting department of the Ministry of Finance on November 1, 2021, it is pointed out that under normal circumstances, the transportation activities occurring in order to perform the customer’s contract before the control of the enterprise’s goods or services is transferred to the customer do not constitute a single performance obligation, and the relevant transportation costs should be regarded as the contract performance costs, amortized on the same basis as the recognition of the revenue of goods or services, and included in the current profit and loss. The contract performance cost shall be carried forward and included in the title of “main business cost” or “other business cost” when recognizing the revenue of goods or services, and shall be listed in the item of “operating cost” in the income statement.

(II) date of this accounting policy change

For the Q & A on the implementation of the fifth batch of accounting standards for business enterprises in 2021, the company will implement the changed accounting policies from January 1, 2021, and retroactively adjust the amount in the same period of last year.

(III) accounting policies adopted before and after the change

Before this change, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, application guidelines of accounting standards for business enterprises, interpretation announcement of accounting standards for business enterprises and other relevant regulations issued by the Ministry of finance.

After this accounting policy change, the company will implement the above question and answer on the implementation of accounting standards for business enterprises issued by the accounting department of the Ministry of Finance on November 1, 2021. In addition to the above changes in accounting policies, the remaining unchanged parts are still in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards, application guidelines of accounting standards for business enterprises, interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of finance.

2、 Impact of this accounting policy change on the company

According to the question and answer on the implementation of the fifth batch of accounting standards for business enterprises in 2021 issued by the accounting department of the Ministry of Finance on November 1, 2021, the transportation costs incurred by the company for the transportation services that do not constitute a single performance obligation in order to perform the customer’s contract before the control of goods or services is transferred to the customer are regarded as the contract performance costs, amortized on the same basis as the recognition of goods or services revenue, and included in the current profit and loss, Listed in “operating costs” in the income statement. The above changes in accounting policies resulted in an increase in operating costs and a decrease in sales expenses of RMB 765668673 in the consolidated statements of the company in 2021, and an increase in operating costs and a decrease in sales expenses of RMB 328838980 in the statements of the parent company in 2021. In 2020, the increase in operating costs and the decrease in selling expenses in the consolidated statements of the group amounted to rmb747093921, while the increase in operating costs and the decrease in selling expenses in the statements of the parent company amounted to rmb275953025. 3、 Opinions of independent directors and board of supervisors

Opinions of independent directors: the change of accounting policies is a reasonable change and adjustment in accordance with the accounting standards for Business Enterprises No. 14 – revenue and the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance, which is in line with the provisions of laws and regulations. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws and regulations and the articles of association, conforms to the overall interests of the company and shareholders, and there is no damage to the interests of the company and shareholders. We agree to this accounting policy change.

Opinion of the board of directors: this accounting policy change is a reasonable change and adjustment in accordance with the accounting standards for Business Enterprises No. 14 – revenue and the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance, and complies with the provisions of laws and regulations. In line with the overall interests of the company and shareholders, we agree to this accounting policy change.

Opinion of the board of supervisors: the change of accounting policy is in accordance with the accounting standards for Business Enterprises No. 14 – revenue and the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance, in line with the provisions of laws and regulations, the relevant decision-making procedures are legal and compliant, and there is no harm to the interests of the company and shareholders. We agree to the change of accounting policy.

Maanshan Iron & Steel Company Limited(600808) board of directors March 23, 2022

- Advertisment -