3、 Basic information of the company 1 Company profile √ applicable □ not applicable
Swancor Advanced Materials Co.Ltd(688585) (hereinafter referred to as "the company" or "the company"), was incorporated on October 25, 2000 and its registered address is No. 618, Songsheng Road, Songjiang District, Shanghai, China. The headquarters address of the company is No. 618, Songsheng Road, Songjiang District, Shanghai, China. Legal representative of the company: Cai Chaoyang, unified social credit Code: 9131 Shenzhen Zhongjin Lingnan Nonfemet Co.Ltd(000060) 742212x5, business period: October 25, 2000 to no agreed period.
With the approval of registration of Swancor Advanced Materials Co.Ltd(688585) initial public offering (zjxk [2020] No. 2012) issued by China Securities Regulatory Commission, the company issued 43200000 RMB common shares (A shares) to the public for the first time, with an issue price of 2.49 yuan per share. The company's shares were listed on Shanghai Stock Exchange on September 28, 2020. After this public offering, the registered capital of the company was changed from 3 Shanghai Pudong Development Bank Co.Ltd(600000) 00 yuan to 403200000 yuan, and the total number of shares of the company was changed from 3 Shanghai Pudong Development Bank Co.Ltd(600000) 00 shares to 403200000 shares.
Business scope: the business scope of the company is "producing and developing adhesives, additives, low shrinkage agents and thermosetting resins, selling self-produced products; engaging in the import and export, wholesale, commission agency business (except auction) and related supporting business of similar commodities with the above products (excluding refined oil, precursor and other special chemical products). [for projects subject to approval according to law, business activities can be carried out only with the approval of relevant departments]
The company is mainly engaged in the production, R & D and sales of environment-friendly high-performance corrosion-resistant materials, materials for wind power blades and new composite materials. 2. Scope of consolidated financial statements √ applicable □ not applicable
The consolidation scope of the consolidated financial statements is determined on the basis of control. See note VIII for the changes in this year. See note IX for details of the scope of the consolidated financial statements of this year. 4、 Preparation basis of financial statements 1 Preparation basis
The financial statements of the company are prepared on the basis of going concern.
The company has implemented the accounting standards for Business Enterprises No. 21 - leasing revised by the Ministry of Finance in 2018 since January 1, 2021. Refer to V and 44 in this section. 2. Going concern √ applicable □ not applicable
Within 12 months from the end of the reporting period, the company has no major doubts about the company's sustainable operation ability.
5、 Important accounting policies and accounting estimates specific accounting policies and accounting estimates tips: √ applicable □ not applicable
The accounting policies related to the recognition and measurement of bad debt provision for accounts receivable, depreciation of fixed assets, amortization of intangible assets and recognition and measurement of income of the company are formulated according to the operating characteristics of relevant businesses of the company. See relevant notes for specific policies. 1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the accounting standards for business enterprises issued by the Ministry of finance, and truly and completely reflect the consolidated financial position and financial position of the company as of December 31, 2021, the consolidated operating results and operating results, and the consolidated cash flow and cash flow of the company in 2021.
In addition, the financial statements of the company also comply with the disclosure requirements of the financial statements and their annotations in the rules for the preparation of information disclosure of companies offering securities to the public No. 15 - General Provisions on financial reports revised by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") in 2014. 2. Accounting period
The accounting year of the company starts from January 1 to December 31 of the Gregorian calendar.
3. Business cycle √ applicable □ not applicable
The company regards the period from the purchase of assets for processing to the realization of cash or cash equivalents as the normal business cycle. The business cycle of the company's main business is usually less than 12 months. 4. Recording currency
The bookkeeping base currency of the company is RMB, and the currency used in the preparation of financial statements is RMB. The bookkeeping functional currency selected by the company and its subsidiaries is based on the pricing and settlement currency of main business revenue and expenditure. Some subsidiaries of the company use currencies other than the company's bookkeeping base currency as the bookkeeping base currency. When preparing the financial statements, the foreign currency financial statements of these subsidiaries are translated in accordance with Section V and 9 of this section. 5. Accounting treatment methods for business combinations under the same control and not under the same control □ applicable √ not applicable
6. Preparation method of consolidated financial statements √ applicable □ not applicable (1) general principles
The consolidation scope of the consolidated financial statements is determined on the basis of control, including the company and the subsidiaries controlled by the company. Control means that the company has the power over the investee, enjoys variable returns through participating in relevant activities of the investee, and is able to use the power over the investee to affect its return amount. When judging whether the company has the right to the investee, the company only considers the substantive rights related to the investee (including the substantive rights enjoyed by the company itself and other parties). The financial position, operating results and cash flow of subsidiaries are included in the consolidated financial statements from the control start date to the control end date.
The equity, profit and loss and total comprehensive income attributable to minority shareholders of subsidiaries are listed separately after the shareholders' equity in the consolidated balance sheet and the net profit and total comprehensive income in the consolidated income statement.
If the current loss shared by minority shareholders of a subsidiary exceeds the share of minority shareholders in the owner's equity of the subsidiary at the beginning of the period, the balance shall still be offset against the reduced shareholder's equity. (2) Subsidiaries acquired through merger
For subsidiaries acquired through business combination under the same control, when preparing the consolidated current financial statements, based on the book value of various assets and liabilities of the consolidated subsidiaries in the financial statements of the final controller, it is deemed that the consolidated subsidiaries are included in the scope of company consolidation when the final controller of the company begins to control them, The opening balance of the consolidated financial statements and the comparative statements of the previous period shall be adjusted accordingly. 7. Classification of joint venture arrangement and accounting treatment method of joint operation □ applicable √ not applicable 8 Criteria for determining cash and cash equivalents
Cash equivalents refer to the short-term (generally due within three months from the date of purchase), highly liquid investments that are easy to convert into known amounts of cash and have little risk of value change. 9. Foreign currency business and foreign currency statement translation √ applicable □ not applicable
When the company receives the capital invested by investors in foreign currency, it shall be converted into RMB at the spot exchange rate of the current day, and other foreign currency transactions shall be converted into RMB at the approximate exchange rate of the spot exchange rate on the transaction date at the initial recognition. The approximate exchange rate of spot exchange rate is the current average exchange rate determined according to a systematic and reasonable method and similar to the spot exchange rate on the transaction date.
On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on that date. Except for the exchange differences of the principal and interest of special borrowings related to the acquisition and construction of assets eligible for capitalization (see V and 25 of this section), other exchange differences are included in the current profit and loss. Foreign currency non monetary items measured at historical cost are still translated at the spot exchange rate on the transaction date.
When the financial statements of overseas operations are translated, the assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date. In the owner's equity item, except for the undistributed profit and the translation difference of foreign currency statements in other comprehensive income, other items are translated at the spot exchange rate at the time of occurrence. The income and expense items in the income statement are translated at the approximate exchange rate of the spot exchange rate on the transaction date. The translation difference of foreign currency financial statements generated according to the above translation is listed in other comprehensive income. When disposing of overseas operations, the translation difference of relevant foreign currency financial statements is transferred from the owner's equity to the current profit and loss of disposal.
10. Financial instruments √ applicable □ not applicable
The company's financial instruments include monetary capital, accounts receivable, accounts payable, loans and share capital. (1) Recognition and measurement of financial assets and financial liabilities
Financial assets and financial liabilities are recognized in the balance sheet when the company becomes a party to the contract terms of relevant financial instruments.
At initial recognition, financial assets and financial liabilities are measured at fair value. For the financial assets or financial liabilities measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss; For other types of financial assets or financial liabilities, relevant transaction costs are included in the initially recognized amount. For accounts receivable that do not contain significant financing components or do not consider the financing components in contracts not exceeding one year, the company shall conduct initial measurement according to the transaction price determined in accordance with the accounting policies in Section V and 38 of this section. (2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets of the company
According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the company usually divides financial assets into different categories at initial recognition: financial assets measured at amortized cost, financial assets measured at fair value and its changes included in other comprehensive income, and financial assets measured at fair value and its changes included in current profit and loss.
Unless the company changes the business model of managing financial assets, in this case, all affected relevant financial assets shall be reclassified on the first day of the first reporting period after the change of business model, otherwise financial assets shall not be reclassified after initial recognition. The company classifies the financial assets that meet the following conditions and are not designated to be measured at fair value and whose changes are included in the current profit and loss as financial assets measured at amortized cost:
-The company's business model for managing the financial assets is to collect contract cash flow as the goal;
-The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and interest based on the outstanding principal amount.
The company classifies the financial assets that meet the following conditions and are not designated to be measured at fair value and whose changes are included in the current profit and loss as financial assets measured at fair value and whose changes are included in other comprehensive income:
-The company's business model of managing the financial assets aims at both receiving the contractual cash flow and selling the financial assets- The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and interest based on the outstanding principal amount.
For non tradable equity instrument investments, the company can irrevocably designate them as financial assets measured at fair value and whose changes are included in other comprehensive income at the time of initial recognition. The designation is made on the basis of individual investment, and the relevant investment conforms to the definition of equity instrument from the perspective of the issuer.
Except for the above financial assets measured at amortized cost and at fair value with changes included in other comprehensive income, the company classifies all other financial assets as financial assets measured at fair value with changes included in current profit and loss. At the time of initial recognition, if the accounting mismatch can be eliminated or significantly reduced, the company can irrevocably designate the financial assets that should be measured at amortized cost or at fair value and whose changes are included in other comprehensive income as the financial assets measured at fair value and whose changes are included in the current profit and loss.
The business model of managing financial assets refers to how the company manages financial assets to generate cash flow. The business model determines whether the source of the cash flow of the financial assets managed by the company is the collection of contract cash flow, the sale of financial assets or both. The company determines the business model of managing financial assets based on objective facts and the specific business objectives of managing financial assets determined by key managers.
The company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow generated by relevant financial assets on a specific date is only the payment of principal and interest based on the amount of outstanding principal. The principal refers to the fair value of financial assets at the time of initial recognition; Interest includes consideration for the time value of money, credit insurance related to the outstanding principal amount in a specific period, and other basic borrowing risks, costs and profits. In addition, the company evaluates the contract terms that may lead to changes in the time distribution or amount of contractual cash flow of financial assets to determine whether they meet the requirements of the above contractual cash flow characteristics. (b) Subsequent measurement of the company's financial assets
-Financial assets measured at fair value through profit or loss
After initial recognition, such financial assets are subsequently measured at fair value, and the resulting gains or losses (including interest income) are included in the current profits and losses, unless the financial assets are part of the hedging relationship.
-Financial assets measured at amortized cost
After initial recognition, such financial assets are measured at amortized cost using the effective interest rate method. The gains or losses arising from financial assets measured at amortized cost and not part of any hedging relationship shall be included in the current profit and loss when they are derecognized, reclassified, amortized according to the effective interest rate method or recognized as impaired.
-Debt investment measured at fair value with changes included in other comprehensive income
After initial recognition, such financial assets are subsequently measured at fair value. The interest, impairment loss or gain and exchange gain and loss calculated by the effective interest rate method are included in the current profit and loss, and other gains or losses are included in other comprehensive income. At the time of derecognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred out of other comprehensive income and included in the current profit and loss.
-Equity instrument investment measured at fair value with changes included in other comprehensive income
After initial recognition, such financial assets are subsequently measured at fair value. Other gains or losses are included in other comprehensive income. Upon derecognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred out of other comprehensive income and included in retained earnings. (3) Classification and subsequent measurement of financial liabilities
The company classifies financial liabilities into financial liabilities measured at fair value through profit or loss and financial liabilities measured at amortized cost.
-Financial liabilities measured at fair value through profit or loss
Such financial liabilities include trading financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated to be measured at fair value and whose changes are included in current profits and losses.
After initial confirmation
