Securities code: Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) securities abbreviation: Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) Announcement No.: 2022013
Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513)
Announcement on changes in accounting estimates
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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law. Important content tips:
According to the relevant provisions of the accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction, the changes in the company’s accounting estimates are accounted for by the future applicable method, without retroactive adjustment, and will not have an impact on the financial status, operating results and cash flows of previous periods. It is not expected to have a significant impact on the company’s future financial position, operating results and cash flow.
1、 Summary of changes in accounting estimates
(I) overview of changes in accounting estimates
In order to more fairly and appropriately reflect the company’s financial situation and operating results and make the depreciation life of assets closer to the service life of assets, the company has made changes in accounting estimates after evaluating the service life and service life of fixed assets. The changes are as follows:
Before and after change
Category of fixed assets depreciation period (year) depreciation period (year)
Houses and buildings 5-30 5-40
Structures 10-20
Machinery and equipment 5-10 5-12
The change of accounting estimate will be implemented from January 1, 2022.
(II) review procedure
On March 28, 2022, the company held the second meeting of the third board of directors and the second meeting of the third board of supervisors. The meeting deliberated and adopted the proposal on the change of accounting estimates of the company, and the independent directors issued their agreed independent opinions. The proposal is within the scope of the company’s decision-making and does not need to be submitted to the board of directors. 2、 Specific situation and impact on the company
(I) details of changes in accounting estimates
1. Changes in accounting estimates
Before and after change
Category depreciation life residual value rate annual depreciation rate depreciation annual residual value annual depreciation rate (year) (%) (%) limit (year) rate (%) (%)
Houses and buildings 5-30 3.23-19.40 5-40 3 2.43-19.40
Structures 10 3 9.7 10-20 3 4.85-9.7
Machinery and equipment 5-10 3 9.7-19.40 5-12 3 8.08-19.40
2. Date of change:
This accounting estimate change will be implemented from January 1, 2022.
3. Reason for change:
The company’s initial public offering in September 2020 raised funds to invest in the project “construction of industrialization base of innovative drug series products in the field of major diseases”. The automation and specialization of the production line are further strengthened, the comprehensiveness of production equipment and production technology are improved, and the quality indexes such as product stability and reliability can be ensured to reach the international leading level. Compared with the original production process and equipment, the process is reasonable, the equipment performance is good, the production line has reached the international advanced level, and the expected service life of relevant machinery and equipment is increased compared with that of the original machinery and equipment. In order to more fairly and reasonably reflect the impact of depreciation provision of machinery and equipment on the company’s financial status and operating results, the company reviewed and re determined the estimated service life according to the use and consumption of different types of machinery and equipment; At the same time, referring to the depreciation period of machinery and equipment of Companies in the same industry, the company determines that the depreciation period of machinery and equipment is 5-12 years.
The project has been scientifically designed, demonstrated, planned and implemented by excellent design institutes at home and abroad. It is an independent zoning, reasonable layout, modern and international preparation production and manufacturing base that meets the requirements of FDA, EMEA and other pharmaceutical administration. The actual service life of the newly built property is longer than the originally determined accounting estimate. If the company uses the previous depreciation years of houses and buildings, it can not truly reflect the actual use of relevant assets in the future to a certain extent. In order to more objectively reflect the expected service life of houses and buildings, the company redefines the expected service life of houses and buildings in accordance with the relevant provisions of accounting standards and combined with the actual situation. The maximum depreciation life is adjusted from 30 years to 40 years. The estimated service life of structures is redefined, and the maximum depreciation life is adjusted from 10 years to 20 years.
According to the accounting standards for Business Enterprises No. 4 – fixed assets, an enterprise shall reasonably determine the service life and estimated net residual value of fixed assets according to the nature and use of fixed assets. At least at the end of each year, the enterprise shall review the service life, estimated net salvage value and depreciation method of fixed assets. If the expected service life is different from the original estimate, the service life of fixed assets shall be adjusted.
(II) impact of accounting estimates on the company
According to the provisions of accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction, changes in accounting estimates are handled by the future application method. Therefore, this change in accounting estimates does not need to make retroactive adjustment to the disclosed financial statements of the company, and will not have an impact on the financial status and operating results of the company in previous periods.
According to the calculation of the company’s financial department (Unaudited), after the change of this accounting estimate, it is estimated that the depreciation in 2022 will be reduced by about 8.2934 million yuan, and the net profit will be increased by about 7.0494 million yuan, accounting for about 3.03% of the audited net profit of the previous year. The final impact amount shall be subject to the audited amount.
3、 Concluding observations of independent directors, board of supervisors and accounting firms
(I) opinions of independent directors
We believe that the accounting estimate change of the company complies with the relevant provisions of the accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction and the actual operation of the company. The changed accounting estimates comply with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shanghai Stock Exchange, can accurately reflect the company’s financial situation and operating results, and are in line with the legitimate interests of the company and all shareholders, especially minority shareholders.
The review procedure of this accounting estimate change complies with the provisions of relevant laws and regulations and the articles of association. Therefore, we unanimously agree on the changes in accounting estimates of the company.
(II) opinions of the board of supervisors
The change of the company’s accounting estimate complies with the relevant provisions of the accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction and the actual operation of the company, and can more objectively and fairly reflect the company’s financial status and operating results. The decision-making procedure of the change of accounting estimate complies with the provisions of relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and minority shareholders, The board of supervisors agreed to the change of accounting estimates of the company.
(III) opinions of accounting firm
Zhonghui Certified Public Accountants (special general partnership) issued the “special instructions on Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) accounting estimate change” to the company’s accounting estimate change
[2022] No. 1104], it is considered that the changes in accounting estimates deliberated and adopted at the second meeting of the third board of directors on March 28, 2022 Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) 2022 comply with the provisions of the accounting standards for business enterprises and the business guide for information disclosure of companies listed on the science and Innovation Board No. 3 – Daily Information Disclosure: No. 16 – Announcement on correction of accounting errors and changes in accounting policies or accounting estimates of companies listed on the science and Innovation Board of Shanghai Stock Exchange, It truthfully reflects the changes in accounting estimates of Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) in all major aspects.
It is hereby announced.
Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513)
Board of directors
March 29, 2022
