Tibet Duo Rui Pharmaceutical Co.Ltd(301075) : Announcement on changes in accounting policies

Securities code: Tibet Duo Rui Pharmaceutical Co.Ltd(301075) securities abbreviation: Tibet Duo Rui Pharmaceutical Co.Ltd(301075) Announcement No.: 2022022 Tibet Duo Rui Pharmaceutical Co.Ltd(301075)

Announcement on changes in accounting policies

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、 Overview of changes in accounting policies

(I) reasons for change

The Ministry of Finance revised and issued the accounting standards for Business Enterprises No. 21 – leasing (hereinafter referred to as the “new leasing standards”) on December 7, 2018. The new leasing standards have made major changes in the definition and identification of leasing and the accounting treatment of lessees. The company will implement it from January 1, 2021. Due to the revision of the above accounting standards, the company needs to adjust the relevant accounting treatment accordingly.

(II) date of change

The company will implement it from January 1, 2021.

(III) change review procedure

The 11th meeting of the first board of directors and the 9th meeting of the first board of supervisors held on March 23, 2022 considered and adopted the proposal on changes in accounting policies. According to relevant regulations, this accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.

(IV) accounting policies adopted before change

Before the change of accounting policy, 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.

(V) accounting policies adopted after change

After this accounting policy change, the company will implement in accordance with the accounting standards for Business Enterprises No. 21 – leasing revised and issued by the Ministry of finance. In addition to the above policy changes, other unchanged parts shall still be implemented in accordance with 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 provisions issued by the Ministry of Finance in the early stage.

2、 Impact of this accounting policy change on the company

This accounting policy change is made by the company in accordance with the requirements of the accounting standards and other documents revised and issued by the Ministry of finance. The changed accounting policy can objectively and fairly reflect the company’s financial status and operating results, comply with the provisions of relevant laws and regulations and the actual situation of the company, will not have a significant impact on the company’s financial status and operating results, and will not damage the interests of the company and shareholders.

3、 Deliberations of the board of directors

After deliberation, the board of directors considered that the company’s revised accounting standards for Business Enterprises No. 21 – leasing was implemented in accordance with the relevant documents of the Ministry of Finance and in line with the provisions of relevant laws, regulations and accounting standards for business enterprises. After the implementation of the changed accounting policies, the company’s financial situation and operating results can be objectively and fairly reflected, without retroactive adjustment of previous years and impact on the company’s financial situation Operating results and cash flow will not have a significant impact. There is no damage to the interests of the company and minority shareholders.

4、 Opinions of independent directors

The independent directors believe that the change of accounting policy is the change made by the company according to the requirements of accounting standards and other documents revised and issued by the Ministry of finance, which is in line with relevant regulations. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws, regulations and the articles of association. This accounting policy change will not have a significant impact on the company’s financial position, operating results and cash flow, does not involve retroactive adjustment of previous years, and does not damage the interests of the company and shareholders, especially the interests of minority shareholders. We agree with this accounting policy change.

5、 Documents for future reference

(I) resolutions of the 11th meeting of the first board of directors of the company

(II) resolutions of the ninth meeting of the first board of supervisors of the company

(III) independent opinions of independent directors on matters related to the 11th meeting of the first board of directors

It is hereby announced.

Tibet Duo Rui Pharmaceutical Co.Ltd(301075) board of directors March 24, 2022

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