Securities code: Emtek (Shenzhen) Co.Ltd(300938) securities abbreviation: Emtek (Shenzhen) Co.Ltd(300938) Announcement No.: 2022055 Emtek (Shenzhen) Co.Ltd(300938)
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.
Emtek (Shenzhen) Co.Ltd(300938) (hereinafter referred to as “the company”) deliberated and adopted the proposal on accounting policy change at the second meeting of the Fourth Board of directors held on March 30, 2022. This accounting policy change is made by the company in accordance with the requirements of laws, regulations and national unified accounting system, and does not need to be reviewed by the general meeting of shareholders. The specific conditions of this accounting policy change are announced as follows:
1、 Overview of this accounting policy change
1. Reason and date of change
(1) On February 2, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1), hereinafter referred to as “Interpretation No. 14”), which shall come into force as of the date of promulgation. The relevant newly added businesses from January 1, 2021 to the implementation date shall be adjusted according to Interpretation No. 14.
According to the requirements, the company will implement it from January 1, 2021.
(2) On May 26, 2021, the Ministry of Finance issued the notice on adjusting the scope of application of the provisions on accounting treatment of rent concessions related to covid-19 pneumonia epidemic (CAI Kuai [2021] No. 9), which will come into force on May 26, 2021.
According to the requirements, the company shall implement it according to the implementation date of CAI Kuai [2021] No. 9.
(3) The Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 15 (CAI Kuai [2021] No. 35) on December 30, 2021, which clearly stipulates that the content of “relevant presentation of centralized fund management” shall be implemented from the date of publication, and the data of financial statements in comparable periods shall be adjusted accordingly.
According to the requirements, the company shall implement it according to the implementation date of CAI Kuai [2021] No. 35.
2. Accounting policies adopted by the company before 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 provisions revised and issued by the Ministry of finance.
3. Accounting policies adopted by the company after change
After the change of accounting policy, the company will implement the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1) issued by the Ministry of Finance on February 2, 2021 and the notice on adjusting the scope of application of the accounting treatment regulations for rent reduction related to covid-19 (CAI Kuai [2021] No. 9) issued by the Ministry of Finance on May 26, 2021 Relevant provisions of the interpretation of accounting standards for Business Enterprises No. 15 (CK [2021] No. 35) issued by the Ministry of Finance on December 30, 2021. Other 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、 Impact of this accounting policy change on the company
1. According to the requirements of the interpretation of accounting standards for Business Enterprises No. 14, the main contents of this accounting policy change are as follows:
(1) Government and social capital cooperation (PPP) project contract
Interpretation No. 14 is applicable to PPP project contracts that meet the “dual characteristics” and “dual control” described in the interpretation at the same time. For relevant PPP project contracts that are implemented before December 31, 2020 and have not been completed by the implementation date, retrospective adjustment shall be made. If retrospective adjustment is not feasible, it shall be applied from the beginning of the earliest period of retrospective adjustment, and the cumulative impact shall be adjusted to the retained earnings at the beginning of the year on the implementation date and other relevant items in the financial statements, The information of comparable periods shall not be adjusted. The implementation of this provision has not had a significant impact on the financial status and operating results of the company. (2) Benchmark interest rate reform
Interpretation No. 14 has made simplified accounting treatment provisions for the change of the determination basis of cash flows related to financial instrument contracts and lease contracts due to the reform of benchmark interest rates.
According to the interpretation, the businesses related to the benchmark interest rate reform before December 31, 2020 shall be retroactively adjusted, except that the retroactive adjustment is not feasible, and there is no need to adjust the data of the previous comparative financial statements. On the implementation date of the interpretation, the difference between the original book value and the new book value of financial assets and financial liabilities shall be included in the opening retained earnings or other comprehensive income of the annual reporting period on the implementation date of the interpretation. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
2. According to the requirements on adjusting the accounting treatment regulations on rent reduction related to covid-19 pneumonia epidemic, the main contents of this accounting policy change are as follows:
The company has adopted the simplified method for accounting treatment of all lease contracts that meet the conditions before the adjustment of the scope of application, and also adopted the simplified method for accounting treatment of similar lease contracts that meet the conditions after the adjustment of the scope of application, and retroactively adjusted the relevant lease contracts that have adopted the accounting treatment of lease change before the issuance of the notice, but did not adjust the data of the comparative financial statements in the previous period; The relevant rent concessions that have not been accounted for in accordance with the provisions of the notice between January 1, 2021 and the implementation date of the notice shall be adjusted according to the notice. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
3. According to the requirements of the interpretation of accounting standards for Business Enterprises No. 15 on the presentation of centralized fund management, the main contents of this accounting policy change are as follows:
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”) on December 30, 2021. The content of “relevant presentation of centralized fund management” shall be implemented from the date of publication, and the data of financial statements in comparable periods shall be adjusted accordingly. Interpretation No. 15 clearly stipulates how the balance involved in the centralized and unified management of the funds of the parent company and member units by enterprises through internal settlement centers and financial companies should be presented and disclosed in the balance sheet. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
3、 Opinions of the board of directors
The board of Directors believes that the change of accounting policy is a reasonable change in accordance with the revision notice of the Ministry of Finance and the latest accounting standards issued. The implementation of the change of accounting policy can more objectively and fairly reflect the company’s financial situation, operating results and cash flow. Its decision-making procedures comply with relevant laws, administrative regulations and the articles of association, and there is no damage to the interests of the company and minority shareholders, The change of accounting policy is in line with the actual situation of the company and the accounting standards for business enterprises and relevant regulations.
4、 Opinions of the board of supervisors
The board of supervisors believes that the change of the company’s accounting policy complies with the relevant provisions of the Ministry of Finance and the latest accounting standards, and the company changes the format of financial statements accordingly in accordance with the relevant provisions of the Ministry of finance, which can more objectively and fairly reflect the company’s financial status and operating results; The decision-making procedure of this accounting policy change complies with the provisions of relevant laws and regulations, normative documents, articles of association and other company systems, has no significant impact on the company’s financial status, operating results and cash flow, and does not damage the rights and interests of the company and all shareholders.
Agree to the change of the company’s accounting policy.
5、 Opinions of independent directors
The independent directors of the company believe that the change of accounting policies of the company in accordance with the relevant provisions and requirements of the Ministry of finance is in line with the relevant provisions of the Shenzhen Stock Exchange GEM Listing Rules and the Shenzhen Stock Exchange listed companies self regulatory guidance No. 2 – standardized operation of companies listed on the gem, and also reflects the principles of authenticity and prudence of accounting, It can more objectively and fairly reflect the company’s financial situation and operating results. The change of accounting policy will not have a significant impact on the company’s financial statements, which is in line with the interests of the company and all shareholders. The voting procedures of the board of directors on this matter comply with the provisions of relevant laws and regulations. Therefore, we agree to the change of the company’s accounting policies.
6、 Documents for future reference
1. Resolutions of the second meeting of the Fourth Board of directors of the company;
2. Resolutions of the second meeting of the Fourth Board of supervisors of the company;
3. Independent opinions of independent directors on matters related to the second meeting of the Fourth Board of directors.
It is hereby announced.
Emtek (Shenzhen) Co.Ltd(300938) board of directors March 30, 2022
