Securities code: China Hainan Rubber Industry Group Co.Ltd(601118) securities abbreviation: China Hainan Rubber Industry Group Co.Ltd(601118) Announcement No.: 2022025 China Hainan Rubber Industry Group Co.Ltd(601118)
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:
● this accounting policy change will not have a significant impact on the company’s financial statements.
● this accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.
1、 Overview of changes in accounting policies
This accounting policy change is a reasonable adjustment made by the company in accordance with the relevant provisions of the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance of the people’s Republic of China on November 2, 2021, and will not have a significant impact on the company’s financial status and operating results.
From January 1, 2021, the company will reclassify all the transportation costs incurred in performing the customer’s contract before the transfer of commodity control to the customer from “sales expenses” to “operating costs”. At the same time, retroactively adjust the relevant items of the 2020 financial statements.
The 8th meeting of the 6th board of directors and the 5th meeting of the 6th board of supervisors deliberated and adopted the proposal on changes in accounting policies. The independent directors of the company have expressed their independent opinions on this matter, and this proposal does not need to be submitted to the general meeting of shareholders for deliberation.
2、 Specific situation and impact on the company
(I) reasons for this accounting policy change
On November 2, 2021, the Ministry of Finance issued a question and answer on the implementation of the accounting standards for business enterprises and income standards, which clearly stipulates that: generally, the transportation activities before the control of the enterprise’s goods or services is transferred to the customer and in order to perform the customer’s contract do not constitute a single performance obligation, and the relevant transportation costs shall be regarded as the contract performance costs, amortized on the same basis as the recognition of the revenue of goods or services, and included in the current profit and loss. The contract performance cost shall be carried forward and included in the title of “main business cost” or “other business cost” when recognizing the revenue of goods or services, and shall be listed in the item of “operating cost” in the income statement.
(II) date of this accounting policy change
The company will implement the changed accounting policies from January 1, 2021.
(III) accounting policies adopted before this change
Before the change of accounting policy, the company implemented the accounting standards for Business Enterprises No. 14 – income issued by the Ministry of Finance in 2006; After the implementation of the new income standard, according to the provisions of the application guide of accounting standards for business enterprises – accounting subjects and main accounting treatment, and considering the comparability of relevant data, the company listed the relevant transportation costs in the “sales expenses” item in 2020.
(IV) accounting policies adopted after this change
After the change of accounting policy, the company reclassified all the transportation costs incurred in performing the customer’s contract before the transfer of commodity control to the customer from “sales expenses” to “operating costs” in accordance with the relevant revenue standards of the Ministry of Finance and the provisions of Q & A.
(V) specific contents of this accounting policy change
The specific contents of this accounting policy change are as follows: from January 1, 2021, the company will reclassify all the transportation costs incurred for the performance of customer contracts before the transfer of commodity control to customers from “sales expenses” to “operating costs”. At the same time, relevant items in the 2020 financial statements are retroactively adjusted, and the specific adjustments are as follows:
Impact amount in 2020
Content and reason of change name of report item affected
Parent company of consolidated statement
For the operating cost of commodity control 23438615080 0
Before transfer to the customer, and the sales expense is -23438615080 0
Payment for purchasing goods and receiving labor services due to the performance of customer sales contracts
234386,150.80 0
For the transportation costs incurred, the cash sales expenses paid by them shall be reclassified to other expenses related to operating activities
Operating costs- 234386,150.80
Closed cash
(VI) impact of this accounting policy change on the company
The above changes will affect the “operating costs” and “sales expenses” in the company’s profit statement, affect the company’s “gross profit margin” and other financial indicators, but will not affect the company’s “operating revenue” and “operating profit”, and will not have a significant impact on the company’s financial status and operating results.
3、 Opinions of the board of directors
The board of Directors believes that the change of accounting policy is revised in accordance with the relevant provisions of the Ministry of Finance and the CSRC, and there is no damage to the interests of the company and all shareholders. Agree with the company to change relevant accounting policies. 4、 Opinions of independent directors
The independent directors believe that the change of accounting policy is a corresponding change made in accordance with the relevant provisions of the Ministry of finance; The implementation of the changed accounting policies can objectively and fairly reflect the financial status and operating results of the company, and there is no situation that damages the interests of the company and shareholders, especially the interests of minority shareholders; The resolution procedure complies with relevant laws, regulations and the articles of association. In conclusion, we agree with the change of accounting policies of the company.
5、 Opinions of the board of supervisors
The board of supervisors believes that the change of accounting policy is revised in accordance with the relevant provisions of the Ministry of finance, and there is no damage to the interests of the company and all shareholders. Agree with the company to change relevant accounting policies. 6、 Documents for future reference
1. China Hainan Rubber Industry Group Co.Ltd(601118) the resolution of the 8th meeting of the 6th board of directors;
2. China Hainan Rubber Industry Group Co.Ltd(601118) the resolution of the 5th meeting of the 6th board of supervisors;
3. China Hainan Rubber Industry Group Co.Ltd(601118) opinions of independent directors.
It is hereby announced.
China Hainan Rubber Industry Group Co.Ltd(601118) board of directors
April 11, 2022
