Securities code: Dynagreen Environmental Protection Group Co.Ltd(601330) securities abbreviation: Dynagreen Environmental Protection Group Co.Ltd(601330) Announcement No.: pro 2022015 convertible bond Code: 113054 convertible bond abbreviation: Green convertible bond
Dynagreen Environmental Protection Group Co.Ltd(601330)
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:
Dynagreen Environmental Protection Group Co.Ltd(601330) (hereinafter referred to as "the company") deliberated and adopted the proposal on accounting policy change at the fifth meeting of the Fourth Board of directors, and agreed that the company should implement the interpretation of accounting standards for Business Enterprises No. 14 from the preparation of annual financial statements in 2021, and recognize the construction income of PPP project during the construction period.
According to the calculation of the company, the impact of the change of accounting policies on the main accounting subjects is as follows: the operating income in 2021 increased by RMB 2427338300, the operating cost in 2021 increased by RMB 2272373600, the net profit attributable to the parent company increased by RMB 117541400 in 2021, and the owner's equity increased by RMB 759105500 on December 31, 2021.
1、 Overview of changes in accounting policies
The Ministry of finance of the people's Republic of China (hereinafter referred to as the "Ministry of finance") issued the notice on printing and distributing the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1) (hereinafter referred to as the "Interpretation No. 14") on February 2, 2021 to explain the accounting treatment of government social capital cooperation (PPP) project contracts and PPP project contracts that meet the corresponding conditions, The construction income shall be recognized in accordance with the accounting standards for Business Enterprises No. 14 - income. In August 2021, the Ministry of Finance issued a question and answer on the implementation of accounting treatment of PPP project, further clarifying the relevant accounting treatment principles.
After the first meeting of the audit and Risk Management Committee of the Fourth Board of directors in 2022, the fifth meeting of the Fourth Board of directors and the third meeting of the Fourth Board of supervisors, the company agreed to recognize the construction income of PPP project during the construction period from the preparation of annual financial statements in 2021. This accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.
2、 Details of this accounting policy change and its impact on the company
(I) specific conditions
Interpretation No. 14 mainly includes the following contents:
1. Clarify the definition and characteristics of the applicable PPP project contract. It refers to the contract concluded between the social capital party and the government party on PPP project cooperation in accordance with laws and regulations. The contract shall comply with "dual characteristics" and "dual control" at the same time. The franchise project agreement that meets the "double characteristics" and "double control" of the interpretation but is not included in the project database of the national PPP comprehensive information platform shall be subject to accounting treatment and retroactive adjustment in accordance with the interpretation.
2. If the social capital party provides construction services (including construction, reconstruction and expansion, the same below) or contracts to other parties, it shall determine whether its identity is the main responsible person or agent in accordance with the accounting standards for Business Enterprises No. 14 - income, conduct accounting treatment and confirm the contract assets.
3. If the social capital party provides multiple services (such as both asset construction services and operation and maintenance services after the completion of the PPP project) according to the PPP project contract, it shall identify the individual performance obligations in the contract in accordance with the accounting standards for Business Enterprises No. 14 - income, and apportion the transaction price to each performance obligation according to the relative proportion of the individual selling price of each performance obligation.
4. According to the PPP project contract, the social capital party has the right to collect fees from the objects who obtain public goods and services during the operation of the project, but if the amount of fees is uncertain, this right does not constitute an unconditional right to receive cash. When the PPP project assets reach the expected usable state, the consideration amount of relevant PPP project assets or the recognized construction income amount shall be recognized as intangible assets; During the operation period of the project, if the conditions for the right to receive cash (or other financial assets) of a determinable amount are met, the accounts receivable shall be recognized when the social capital party has the right to receive the consideration (the right only depends on the factors of time lapse), and the accounting treatment shall be carried out in accordance with the accounting standards for Enterprises No. 22 - recognition and measurement of financial instruments. The social capital party shall recognize the difference between the consideration amount of relevant PPP project assets or the recognized construction income amount and the cash (or other financial assets) entitled to receive a determinable amount as intangible assets when the PPP project assets reach the expected usable state.
5. In order to keep the PPP project assets in a certain service capacity or in a certain use state before being handed over to the government, if the services provided by the social capital party according to the PPP project contract do not constitute a single performance obligation, the expected expenditure shall be accounted for in accordance with the accounting standards for Business Enterprises No. 13 - contingencies.
According to the connection provisions of the conversion between the old and new standards, the relevant PPP project contracts that have been implemented before December 31, 2020 and have not been completed by the implementation date of the interpretation shall be retroactively adjusted if they have not been accounted for in accordance with the above provisions; If retroactive adjustment is not feasible, the interpretation shall be applied from the beginning of the earliest period of retroactive adjustment. The social capital party shall adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year on the date of implementation of the interpretation, and shall not adjust the information of the comparable period.
According to the provisions of Interpretation No. 14 and in combination with the actual implementation of the company's PPP project, the company needs to recognize the construction income and construction cost during the construction of the project. The recognition of construction income is based on the evaluation of the fair value of the project during the construction period by the evaluation institution.
(II) impact on the company
According to the evaluation results, the impact of construction income on the main items of the company's financial statements in 2021 is as follows: unit: 10000 yuan
After the construction income is recognized before the construction income is recognized
Operating income 2629551150568894
Operating cost 1052799633251732
Net profit attributable to parent company 58024456977859
Total assets at the beginning of the period 17446071418 Lootom Telcovideo Network(Wuxi) Co.Ltd(300555) 1
Total liabilities at the beginning of the period 116657932118795093
Opening owner's equity 5780278264210458
Total assets at the end of the period 192052867202144660
Total liabilities at the end of the period 130468106132968845
Closing owner's equity 6158476069175815
3、 Opinions of independent directors
As an independent director of the company in accordance with the company law of the people's Republic of China, the rules for independent directors of listed companies, the rules for the listing of securities on the stock exchange of Hong Kong Limited, the rules for the listing of shares on the Shanghai Stock Exchange, the articles of association and the working rules for independent directors of Dynagreen Environmental Protection Group Co.Ltd(601330) Environmental Protection Group Co., Ltd, We have reviewed the proposal on changing accounting policies submitted to the board of directors of the company for deliberation and issued independent opinions as follows:
1. The change of the company's accounting policies can objectively and fairly reflect the company's financial status and operating results, which is in line with the interests of the company and all shareholders.
2. The decision-making procedure of the company's accounting policy change complies with the provisions of relevant laws and regulations and the articles of association, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders.
4、 Opinions of the board of supervisors of the company
The third meeting of the Fourth Board of supervisors of the company held on March 29, 2022 deliberated and adopted the proposal on changing accounting policies. The board of supervisors of the company believes that the change of the company's accounting policies can objectively and fairly reflect the company's financial situation and operating results. The decision-making procedure complies with the provisions of relevant laws and regulations and the articles of association, and is in line with the interests of the company and all shareholders.
It is hereby announced.
Dynagreen Environmental Protection Group Co.Ltd(601330) board of directors March 30, 2022
