Xinjiang Communications Construction Group Co.Ltd(002941) : Announcement on changes in accounting policies

Securities code: Xinjiang Communications Construction Group Co.Ltd(002941) securities abbreviation: Xinjiang Communications Construction Group Co.Ltd(002941) Announcement No.: 2022018 Xinjiang Communications Construction Group Co.Ltd(002941)

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.

Xinjiang Communications Construction Group Co.Ltd(002941) (hereinafter referred to as “the company”) held the 11th interim meeting of the third board of directors on April 8, 2022, deliberated and adopted the proposal on changes in accounting policies, as follows:

1、 Overview of changes in accounting policies

1. Reasons for changes in accounting policies

(1) On February 2, 2021, 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 of Standards No. 14), which will be implemented as of the date of promulgation.

(2) On December 31, 2021, the Ministry of Finance issued the notice on printing and distributing the interpretation of accounting standards for Business Enterprises No. 15 (CAI Kuai [2021] No. 35) (hereinafter referred to as the interpretation of Standards No. 15), which will be implemented as of the date of promulgation.

2. Date of accounting policy change

According to the requirements, the company shall implement relevant accounting policies from the starting date specified in the above documents.

3. 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 regulations issued by the Ministry of finance.

4. Accounting policies adopted by the company after change

After this change, the company will implement standard Interpretation No. 14 and standard Interpretation No. 15. 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.

5. Approval procedure

The company held the 11th interim meeting of the third board of directors on April 8, 2021, and deliberated and adopted the proposal on changes in accounting policies.

2、 Impact of this accounting policy change on the company

1. According to the standard Interpretation No. 14, the company will handle the new related businesses from January 1, 2021 to the implementation date in accordance with the standard Interpretation No. 14. Retroactive adjustments have been made to relevant PPP project contracts that have been implemented before December 31, 2020 and have not been completed until the implementation date of standard Interpretation No. 14. The relevant cumulative impact amount has not adjusted the data of the comparable period, but only the retained earnings and other relevant items in the financial statements on January 1, 2021. The difference between the original book value and the new book value of financial assets and financial liabilities is included in the retained earnings or other comprehensive income on January 1, 2021. 2. The standard Interpretation No. 15 regulates the presentation of centralized and unified management of the funds of the parent company and member units through internal settlement centers and financial companies. According to the provisions of the interpretation of the Standards No. 15, the company has no adjustment to the statement items of the comparable period as of December 31, 2020.

This accounting policy change is a reasonable change in accordance with the relevant provisions of the accounting standards revised and promulgated by the Ministry of finance, which can more objectively and fairly reflect the company’s financial situation and operating results, and provide investors with more reliable and accurate accounting information. There is no situation that damages the interests of the company and all shareholders.

3、 Relevant opinions

1. Description of the board of directors

The board of Directors believes that this accounting policy change of the company is a reasonable change in accordance with the relevant provisions of the Ministry of finance. This accounting policy change can more objectively and fairly reflect the financial situation and operating results of the company and provide investors with more reliable and accurate accounting information. 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.

2. Opinions of the board of supervisors

After review, the board of supervisors believes that the change of accounting policies is a reasonable change of the company’s accounting policies in accordance with the relevant requirements of the latest interpretation of accounting standards issued by the Ministry of finance, in line with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange and the actual situation of the company. Relevant decision-making procedures comply with relevant laws and regulations and the articles of association. This change will not have a significant impact on the company’s financial statements and will not damage the interests of the company and minority shareholders. Therefore, we agree to the change of the company’s accounting policy.

3. Opinions of independent directors

The independent directors believe that: the company has made corresponding changes to the accounting policies according to the requirements of the documents of the Ministry of finance. The changed accounting policies comply with the relevant provisions of the Ministry of finance, and there is no situation that damages the legitimate rights and interests of the company and all shareholders, especially the interests of minority shareholders. The procedures of this accounting policy change comply with relevant laws and regulations and the articles of association, and the company agrees to this accounting policy change.

4、 Documents for future reference

1. Resolution of the 11th interim meeting of the third board of directors

2. Resolution of the seventh extraordinary meeting of the third board of supervisors 3 The independent opinions of the independent directors on the relevant matters of the eleventh interim meeting of the third board of directors of the company are hereby announced.

Xinjiang Communications Construction Group Co.Ltd(002941) board of directors April 8, 2022

- Advertisment -