Securities code: Zhejiang Zhengguang Industrial Co.Ltd(301092) securities abbreviation: Zhejiang Zhengguang Industrial Co.Ltd(301092) Announcement No.: 2022016 Zhejiang Zhengguang Industrial Co.Ltd(301092)
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.
Zhejiang Zhengguang Industrial Co.Ltd(301092) (hereinafter referred to as the “company”) has made corresponding changes to the accounting policies of the company in accordance with the guidelines issued by the Securities Regulatory Commission of the people’s Republic of China (hereinafter referred to as the “CSRC”) and the 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”). According to the relevant provisions of the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM, this accounting policy change is a change made by the company in accordance with the requirements of laws, regulations and national unified accounting system. This matter does not need to be submitted to the board of directors and the general meeting of shareholders for deliberation. The relevant matters are hereby announced as follows:
1、 Reasons and contents of this accounting policy change
1. The accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35) (hereinafter referred to as the “new leasing standards”) revised and issued by the Ministry of Finance in December 2018 requires enterprises listed at home and abroad and enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises to take effect from January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021.
2. The Ministry of Finance issued the question and answer on the implementation of accounting standards for business enterprises on November 2, 2021, which stipulates that the transportation costs incurred before the control of goods is transferred to customers and for the performance of sales contracts will be reclassified from sales expenses to operating costs.
2、 Change date
This accounting policy change will be implemented from January 1, 2021.
3、 Accounting policies adopted before change
Before the change of accounting policies, 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 after change
After this change, the company will implement the accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35) revised and issued by the Ministry of Finance and the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of Finance in 2021. Other unchanged parts shall still be implemented in accordance with the relevant standards and other relevant provisions issued by the Ministry of Finance in the early stage.
5、 Main contents of this accounting policy change
1. Under the new lease standards, except for short-term leases and low value leases, the lessee will no longer distinguish between financial leases and operating leases. All leases are subject to the same accounting treatment, and the right to use assets and lease liabilities need to be recognized;
2. For the right to use assets, if the lessee can reasonably determine that it will obtain the ownership of the leased assets at the expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased assets. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of the lease term and the remaining service life of the leased asset. At the same time, the lessee shall determine whether the right of use assets are impaired and account for the identified impairment losses; 3. For lease liabilities, the lessee shall calculate the interest expenses of the lease liabilities in each period of the lease term and record them into the current profits and losses;
4. For short-term leases and low value asset leases, the lessee may choose not to recognize the right of use assets and lease liabilities, and include them in the relevant asset costs and current profits and losses according to the straight-line method or other systematic and reasonable methods in each period of the lease term.
6、 Impact of this accounting policy change on the company
1. The main impact of the implementation of the new leasing standards on the company’s financial statements on January 1, 2021 is as follows:
Unit: RMB
Balance sheet
Project new lease criteria
Adjustment effect on December 31, 2020 January 1, 2021
Right to use assets 8268040182680401
Lease liabilities 108316984
Undistributed profit 22415615770 -2563658322389979187
2. In accordance with the question and answer on the implementation of accounting standards for business enterprises, the company retroactively corrected the presentation of sales freight and miscellaneous expenses in 2020, and reclassified the item from “sales expenses” to “operating costs”. The adjustment impact of the accounting policy change on the financial statements of 2020 is shown in the table below:
Unit: RMB
2020 profit statement
Report item
Amount before adjustment correction affects amount after adjustment
Consolidated income statement
Operating cost 27330608158118663017928517238337
Selling expenses 3028460224 -11866301791841830045
Income statement of parent company
Operating costs 1629265228
Selling expenses 81256248125624
Cash flow statement of 2020
Report item
Amount before adjustment correction affects amount after adjustment
Consolidated cash flow statement
Cash paid for purchasing goods and receiving labor services 16170261571118663017917356891750
Other cash paid related to operating activities 3485293039 -11866301792298662860
Cash flow statement of parent company
Cash paid for purchasing goods and receiving labor services 8669022986690229
Other cash paid related to operating activities 235658044
This accounting policy change is made by the company in accordance with the relevant provisions and requirements of the Ministry of Finance and the CSRC. The changed accounting policy can objectively and fairly reflect the company’s financial status and operating results, and comply with the provisions of relevant laws and regulations and the actual situation of the company.
This accounting policy change will not have a significant impact on the company’s financial situation, operating results and cash flow, and there is no damage to the interests of the company and shareholders.
It is hereby announced.
Zhejiang Zhengguang Industrial Co.Ltd(301092) board of directors April 22, 2022
