Huasi Holding Company Limited(002494) : Announcement on changes in accounting estimates of depreciation life of some fixed assets

Securities code: Huasi Holding Company Limited(002494) securities abbreviation: Huasi Holding Company Limited(002494) Announcement No.: 2022009

Huasi Holding Company Limited(002494)

Announcement on changes in accounting estimates of depreciation life of some fixed assets

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.

Huasi Holding Company Limited(002494) (hereinafter referred to as "the company") held the 5th board meeting on April 14, 2022

The second meeting of the board of directors and the second meeting of the Fifth Board of supervisors deliberated and adopted the

Proposal on the change of accounting estimates of old years. The relevant information is hereby announced as follows:

1、 Summary of changes in accounting estimates

(I) reasons for change

According to the actual use and loss of the company's fixed assets and Article 19 of the accounting standards for Business Enterprises No. 4 - fixed assets, "an enterprise shall, at least at the end of each year, assess the service life and estimated net residual value of fixed assets

Value and depreciation method. If the estimated service life is different from the original estimate, it shall be adjusted and fixed

Asset service life ".

In order to reflect the company's financial situation and operating results more objectively and fairly, and make the depreciation life of assets and assets

The service life is closer to meet the needs of the company's business development and fixed asset management

The depreciation period of assets has been sorted out and the depreciation period of housing and buildings has been re verified. Company in 2013

Before 2013, the main houses of the company were production workshops, but the company has built a platform for the industry since 2013

The houses and buildings of the company adopt high architectural design and construction standards, mostly steel structure and reinforced concrete

Frame structure, with a relatively long expected service life, in order to more fairly reflect the impact of the company's fixed assets on the company

Due to the impact of operating results, the company adjusts the depreciation life of some houses and buildings according to the actual situation.

(II) change of depreciation life of fixed assets

According to the verification, the company decided to adjust the depreciation life of some fixed assets from January 1, 2022. The change of accounting policy will be implemented from January 1, 2022. The specific changes are as follows:

Houses and buildings: the houses and buildings of the company adopt high architectural design and construction standards, most of which are

Steel structure and reinforced concrete frame structure are expected to have a relatively long service life. This time, the steel structure and reinforced concrete

For the concrete frame structure house, the company changed the accounting estimate of this kind of fixed assets, and the depreciation life changed from 20 years

40 years; For concrete frame structure, brick concrete structure houses, simple houses and structures, due to their relatively low technical and quality requirements, the expected service life is relatively short, and the depreciation life remains unchanged for 20 years.

The specific depreciation life of fixed assets is changed as follows:

Category depreciation life: current change before and after change

Change of buildings 20-40

1. Steel frame structure and reinforced concrete frame structure 20 40 changes

2. Concrete frame structure, brick concrete structure house and simple 20 remain unchanged

Buildings such as houses and structures

2、 Impact of this accounting estimate change on the company

1. According to the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors, the change in the depreciation period of fixed assets belongs to the change of accounting estimates, which is handled by the future applicable method without retroactive adjustment. This change in accounting estimates does not require retroactive adjustment of the disclosed financial report, It will not affect the financial status and operating results of the company in 2021 and previous years, and will affect the financial statements of the company in 2022.

2. The calculation of this accounting estimate change and its impact on the financial statements of 2022:

Impact of new accounting policies on financial statements in 2022

Accumulated depreciation - 245016 million yuan for houses and buildings

The undistributed profit is 216718 million yuan

In conclusion, according to preliminary estimation, the change of accounting estimate will reduce the depreciation by about 245016 million yuan in 2022, and is expected to increase the net profit of the company by about 216718 million yuan in 2022. The final impact shall be subject to the data disclosed in the company's periodic report. 3、 Explanation of the board of directors on the rationality of changes in accounting estimates

The board of Directors believes that the change of accounting estimates is a reasonable change in accordance with the relevant provisions of Article 19 of the accounting standards for Business Enterprises No. 4 - fixed assets, complies with the provisions of relevant laws and regulations and the actual business operation of the company, can more comprehensively, truly, accurately and fairly reflect the financial status and operating results of the company, and provide investors with more reliable and accurate accounting information, There are no circumstances damaging the interests of the company and all shareholders, and the relevant review procedures are legal and compliant. 4、 Opinions of independent directors

The independent directors believe that the change of the company's accounting estimate is an adjustment based on the actual use of some of the company's fixed assets, which is in line with the provisions of relevant laws, regulations and accounting standards for business enterprises. The changed accounting estimate reflects the company's assets more objectively and fairly, and there is no harm to the interests of shareholders. The review procedure of this accounting estimate change complies with the company law, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and other laws, regulations and normative documents, as well as the relevant provisions of the company's articles of association. Therefore, we unanimously agree with the company's accounting estimate change. 5、 Opinions of the board of supervisors: the board of supervisors believes that the change of accounting estimates complies with the relevant provisions of the accounting standards for business enterprises and the actual operation of the company, its decision-making procedures comply with the relevant laws and regulations and the articles of association, and there is no damage to the interests of the company and shareholders, and agrees with the change of accounting estimates of the company. 6、 Documents for future reference 1. Resolutions of the second meeting of the Fifth Board of directors; 2. Resolution of the second meeting of the 5th board of supervisors. 3. Independent opinions of independent directors on matters related to the second meeting of the Fifth Board of directors. It is hereby announced.

Huasi Holding Company Limited(002494) board of directors April 14, 2022

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