Securities code: Hangzhou Chang Chuan Technology Co.Ltd(300604) securities abbreviation: Hangzhou Chang Chuan Technology Co.Ltd(300604) Announcement No.: 2022040 Hangzhou Chang Chuan Technology Co.Ltd(300604)
Announcement on changes in accounting policies
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Hangzhou Chang Chuan Technology Co.Ltd(300604) (hereinafter referred to as “the company”) held the 7th Meeting of the 3rd board of directors on April 22, 2022, deliberated and adopted the proposal on changes in accounting policies, and agreed that the company would implement the latest accounting standards revised by the Ministry of Finance and change the corresponding accounting policies. This change in accounting policies does not need to be submitted to the general meeting of shareholders for deliberation. The specific changes in relevant accounting policies are as follows:
1、 Overview of this accounting policy change
1. The company will implement the revised accounting standards for Business Enterprises No. 21 – leasing (hereinafter referred to as the new leasing standards) from January 1, 2021 (hereinafter referred to as the first implementation date).
(1) For the lease contract in which the company is the lessee, the company adjusts the amount of retained earnings at the beginning of the reporting period and other relevant items in the financial statements according to the cumulative impact of the implementation of the new lease standard and the original standard on the first implementation date, and does not adjust the information of the comparable period. The specific treatment is as follows:
For the operating lease before the first execution date, the company shall measure the lease liability at the present value discounted by the company’s incremental loan interest rate on the first execution date according to the remaining lease payment on the first execution date, and measure the right to use asset according to the amount equal to the lease liability and make necessary adjustments according to the prepaid rent.
On the first execution date, the company conducts impairment test on the right to use assets and carries out corresponding accounting treatment in accordance with the provisions of note III (XVII) to the financial statements.
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:
Balance sheet
Impact of the adjustment of the new leasing standards on December 31, 2020 and January 1, 2021
Other current assets 2536821260 -85405982528280662
Balance sheet
Impact of the adjustment of the new leasing standards on December 31, 2020 and January 1, 2021
Right of use assets 1163194869
Non current liabilities due within one year 789040599789040599
Lease liabilities 365613672365613672
2) Simplified treatment of operating leases before the first execution date
① For lease contracts completed within 12 months after the first execution date, the company adopts a simplified method and does not recognize the right of use assets and lease liabilities;
② The company determines the lease term according to the actual exercise of the option to renew or terminate the lease before the first execution date and other latest conditions;
③ In case of lease change before the first execution date, the company shall conduct accounting treatment according to the final arrangement of lease change.
The above simplified treatment has no significant impact on the company’s financial statements.
(2) For the operating lease contracts of low value assets existing before the first execution date, the company adopts a simplified method, does not recognize the right of use assets and lease liabilities, and carries out accounting treatment in accordance with the new lease standards from the first execution date.
2. The company has implemented the interpretation of accounting standards for Business Enterprises No. 14 issued by the Ministry of Finance in 2021 since January 26, 2021. The change of accounting policy has no impact on the company’s financial statements.
3. Since December 31, 2021, the company has implemented the provisions of “relevant presentation of centralized fund management” in the interpretation of accounting standards for Business Enterprises No. 15 issued by the Ministry of finance. The change of accounting policy has no impact on the company’s financial statements. 2、 Impact of this accounting policy change on the company
This accounting policy change is a corresponding change made by the company in accordance with the latest accounting standards revised by the Ministry of finance, which complies with the provisions of relevant laws and regulations and the actual situation of the company, will not have a significant impact on the financial situation of the company, and will not damage the interests of the company and shareholders.
3、 Explanation of the board of directors on the reasonableness of this accounting policy change
On April 22, 2022, the company held the 7th Meeting of the 3rd board of directors, deliberated and passed the proposal on accounting policy change, and considered that the change of accounting policy is a reasonable change in accordance with relevant regulations. After the change of accounting policy, the company’s financial statements can objectively and fairly reflect the company’s financial situation and operating results, and there is no damage to the interests of the company and all shareholders, especially small and medium-sized shareholders. Therefore, the board of directors agreed to the change of accounting policy.
4、 Independent opinions of independent directors on the change of accounting policies
After carefully reviewing the relevant materials of the company’s accounting policy change, the independent directors of the company agreed that the company’s accounting policy change was a reasonable change in accordance with the latest accounting standards revised by the Ministry of Finance and in line with the provisions of laws and regulations. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. Therefore, it is agreed that the company will implement this accounting policy change.
5、 Audit opinions of the board of supervisors on the change of accounting policies
On April 22, 2022, the company held the seventh meeting of the third board of supervisors, deliberated and adopted the proposal on accounting policy change, and believed that the accounting policy change was in line with relevant regulations and the actual situation of the company, the relevant decision-making procedures were in line with relevant laws and regulations, the articles of association and other provisions, and there was no damage to the interests of the company and shareholders; This change will not have a significant impact on the company’s financial statements. Therefore, we agree to the change of accounting policies of the company.
6、 Documents for future reference
1. Resolutions of the 7th Meeting of the 3rd board of directors;
2. Resolutions of the 7th Meeting of the 3rd board of supervisors;
3. Independent opinions of independent directors on relevant matters.
It is hereby announced!
Hangzhou Chang Chuan Technology Co.Ltd(300604) board of directors
April 22, 2022
