Securities code: Zhejiang Supcon Technology Co.Ltd(688777) securities abbreviation: Zhejiang Supcon Technology Co.Ltd(688777) Announcement No.: 2022017 Zhejiang Supcon Technology Co.Ltd(688777)
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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
● Zhejiang Supcon Technology Co.Ltd(688777) (hereinafter referred to as “the company” or ” Zhejiang Supcon Technology Co.Ltd(688777) “) made appropriate changes and adjustments to the company’s accounting policies, accounting and presentation of relevant accounting subjects in accordance with the relevant provisions in the Q & A on the implementation of accounting standards for business enterprises issued by the Ministry of finance of the people’s Republic of China (hereinafter referred to as “the Ministry of finance”) in November 2021.
● the main content of this accounting policy change is to reclassify the transportation costs incurred in the performance of customer sales contracts from “sales expenses” to “operating costs”, and retroactively adjust the relevant items in the 2020 financial statements. It is expected to have an impact on the company’s “sales expenses”, “operating costs” and other financial indicators. This change in accounting policies will not have a significant impact on the company’s financial position, operating results and cash flow.
1、 Overview of changes in accounting policies
（1） Reasons for changes in accounting policies
In November 2021, the accounting department of the Ministry of Finance issued the question and answer on the implementation of accounting standards for business enterprises, Specify: “Under normal circumstances, 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. 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 profits and losses. The contract performance costs shall be carried forward and included in the ‘main business costs’ or’ other costs’ when the revenue of goods or services is recognized “Business cost” and listed in the “operating cost” item of the income statement. “
According to the above requirements, the company will reclassify the transportation costs incurred in performing the customer sales contract from “sales expenses” to “operating costs” from January 1, 2021, and retroactively adjust the relevant items in the 2020 financial statements.
On April 9, 2022, the company held the 11th meeting of the 5th board of directors and the 10th meeting of the 5th board of supervisors, and deliberated and adopted the proposal on accounting policy change respectively. This accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.
（2） Accounting policies adopted before this change
Before the change of accounting policy, the company listed the transportation costs incurred in performing the customer sales contract in the “sales expenses” item.
(III) accounting policies adopted after this change
After the change of accounting policy, according to the provisions of the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance, the company has listed the transportation cost incurred in performing the customer sales contract in the “operating cost” item since January 1, 2021, and retroactively adjusted the relevant subjects of the 2020 financial statements. In addition to the above changes in accounting policies, the remaining unchanged parts are still implemented in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and various specific accounting standards issued and revised thereafter, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions.
2、 Specific situation and impact on the company
1. The transportation costs incurred for the performance of the sales contract are listed in the “operating costs” item, which will have an impact on the company’s sales expenses and operating costs, and will not have a significant impact on other important financial indicators.
2. The company will retroactively adjust the relevant subjects of the 2020 financial statements, and the specific adjustments are as follows:
Unit: yuan currency: RMB
Remarks on the amount of the affected report items
Profit statement items in 2020
Operating cost 2258886002
Selling expenses -2258886002
2020 cash flow statement project
Cash paid for purchasing goods and receiving labor services 2258886002
Other cash paid related to operating activities -2258886002
3、 Opinions of independent directors and board of supervisors
(I) opinions of independent directors
The independent directors of the company believe that this accounting policy change is a reasonable change made by the company in accordance with the relevant documents of the Ministry of finance, in line with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission, Shanghai Stock Exchange and other regulatory authorities, and the implementation of the changed accounting policy can objectively and fairly reflect the financial status and operating results of the company. The deliberation and voting procedures of this accounting policy change comply with the provisions of relevant laws and regulations and the articles of association, and there is no situation damaging the interests of the company and all shareholders. We agree with the change of the company’s accounting policy.
(II) opinions of the board of supervisors
The board of supervisors of the company believes that this accounting policy change is a reasonable change in accordance with the relevant documents of the Ministry of finance, in line with the relevant provisions of the Ministry of Finance and other regulatory agencies, can more objectively and fairly reflect the company’s financial status and operating results, and is in line with the interests of the company and shareholders. The review procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association.
It is hereby announced.
Zhejiang Supcon Technology Co.Ltd(688777) board of directors April 12, 2022
