Securities code: Qiaoyin City Management Co.Ltd(002973) securities abbreviation: Qiaoyin City Management Co.Ltd(002973) Announcement No.: 2022049 bond Code: 128138 bond abbreviation: Overseas Chinese bank convertible bond
Qiaoyin City Management Co.Ltd(002973)
Announcement on changes in accounting policies and accounting estimates
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.
Qiaoyin City Management Co.Ltd(002973) (hereinafter referred to as “the company”) held the 43rd meeting of the second board of directors and the 25th meeting of the second board of supervisors on April 25, 2022, deliberated and adopted the proposal on changes in accounting policies and accounting estimates. According to the relevant regulations of Shenzhen Stock Exchange, this change in accounting policies and accounting estimates does not need to be submitted to the general meeting of shareholders for deliberation. The specific contents are hereby announced as follows:
1、 Overview of changes in accounting policies
(I) reasons and contents of changes in accounting policies
On May 26, 2021, the Ministry of Finance issued the notice on adjusting the scope of application of the provisions on accounting treatment of rent concessions related to covid-19 pneumonia epidemic (CAI Kuai [2021] No. 9), The scope of application of rent concession related to covid-19 pneumonia epidemic, which is allowed to adopt the simplified method in the provisions on accounting treatment of rent concession related to covid-19 pneumonia epidemic, is adjusted from “the concession is only for the lease payment payable before June 30, 2021” to “the concession is only for the lease payment payable before June 30, 2022”, and other applicable conditions remain unchanged. The company shall implement these provisions as of the date of promulgation.
On January 26, 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 “Interpretation No. 14”), which stipulates the accounting treatment of social capital parties for government and social capital cooperation (PPP) project contracts and the accounting treatment of changes in the basis for determining the cash flow of relevant contracts caused by the reform of benchmark interest rate. The company shall take effect from the date of promulgation. The newly added businesses specified in Interpretation No. 14 from January 1, 2021 to the implementation date shall be adjusted by the company in accordance with Interpretation No. 14.
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 “Interpretation No. 15”), which stipulates the accounting treatment of the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the R & D process, the presentation of centralized fund management and the judgment of loss contracts. Among them, the contents of “relevant presentation of centralized fund management” shall be implemented as of the date of promulgation, “accounting treatment for the external sales of products or by-products produced before the fixed assets reach the expected usable state or in the process of R & D” and “judgment on loss contracts” shall be implemented as of January 1, 2022.
(II) accounting policies adopted before change
Before the change of accounting policy, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, subsequent issued and revised accounting standards for business enterprises, application guide of accounting standards for business enterprises, interpretation announcement of accounting standards for business enterprises and other relevant regulations.
(III) accounting policies adopted after change
After this change, the company will implement the notice on adjusting the scope of application of the accounting treatment provisions for rent concessions related to covid-19 pneumonia epidemic, Interpretation No. 14 and Interpretation No. 15. The remaining 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.
(IV) impact of changes in accounting policies on the company
1. Impact of the implementation of the notice on adjusting the scope of application of the accounting treatment provisions on rent concessions related to covid-19 pneumonia epidemic on the company
This accounting policy change is made by the company in accordance with the relevant provisions and requirements of the Ministry of finance, which complies with the provisions of relevant laws and regulations and the actual situation of the company, has no impact on the company’s operating results, financial status and cash flow, and does not damage the interests of the company and all shareholders.
2. Impact of implementation explanation No. 14 on the company
For relevant PPP project contracts (including franchise project agreements that meet the “dual characteristics” and “dual control” of Interpretation No. 14 but are not included in the project database of the national PPP comprehensive information platform) that have been implemented before December 31, 2020 and have not been completed by the implementation date of Interpretation No. 14, the cumulative impact of the implementation of Interpretation No. 14 by the company, and adjust the retained earnings at the beginning of the year on the implementation date of this interpretation and the amount of other relevant items in the financial statements, No adjustment shall be made to the information of comparable periods;
For the business related to the benchmark interest rate reform of the company before December 31, 2020, on the implementation date of interpretation 14, the difference between the original book value and the new book value of financial assets and financial liabilities shall be included in the opening retained earnings or other comprehensive income of the annual report period in which the implementation date is located.
3. Impact of implementation explanation No. 15 on the company
This accounting policy change is made by the company in accordance with the relevant provisions and requirements of the Ministry of finance, which complies with the provisions of relevant laws and regulations and the actual situation of the company, has no impact on the company’s operating results, financial status and cash flow, and does not damage the interests of the company and all shareholders.
2、 Overview of changes in accounting estimates
(I) reasons for changes in accounting estimates
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, “the enterprise shall review the service life, estimated net salvage value and depreciation method of fixed assets at least at the end of each year. If the predicted service life is different from the original estimate, the service life of fixed assets shall be adjusted”. In order to reflect the company’s financial situation and operating results more objectively and fairly, make the depreciation life of assets closer to the service life of assets, and meet the needs of the company’s business development and fixed asset management, the company combed the depreciation life of various fixed assets and re approved the depreciation life of some vehicles. Through the long-term tracking of the life cycle of various vehicles and the data analysis of maintenance and repair, the company has found that the service life of washing and cleaning vehicles is about 8 years because the working environment is more comfortable and not easy to be corroded by garbage. The company adjusts the depreciation life of some vehicles according to the actual situation.
(II) changes in accounting estimates
According to the verification, the company decided to adjust the depreciation life of some fixed assets from May 1, 2021, and the depreciation life of washing and cleaning vehicles and other transportation equipment was changed from 6 years to 8 years. According to the accounting standards for Business Enterprises No. 28 – changes in accounting policies, accounting estimates and error correction, the company adopts the future applicable method for accounting treatment of this change in accounting estimates, and there is no need to make retroactive adjustment to the disclosed financial statements in previous years.
(III) impact of changes in accounting estimates on the company
The company’s implementation of the above new fixed assets depreciation policy (based on the stock of fixed assets as of May 1, 2021) has increased the pre tax profit of 2021 by 1010249880 yuan, which is expected to increase the total pre tax profit of 20222024 by 3476884829 yuan and reduce the pre tax profit of 20252029 by 4487134709 yuan.
3、 Explanation of the board of directors on the rationality of changes in accounting policies and accounting estimates
The change of the company’s accounting policy is made in accordance with the relevant provisions issued by the Ministry of finance. The change of accounting policy complies with the current national laws, regulations, normative documents and other relevant provisions.
The change of the company’s accounting estimate is made according to the actual use of the company’s transportation equipment, which is in line with the accounting standards for business enterprises and relevant policies. The changed accounting estimate can more fairly and properly reflect the company’s financial situation and operating results, and there is no damage to the interests of the company and all shareholders. The board of directors of the company agrees to the change of accounting estimate.
4、 Opinions of the board of supervisors
The change of the company’s accounting policy is made in accordance with the relevant regulations issued by the Ministry of Finance and will not have a significant impact on the company’s financial status and operating results. The implementation of the new accounting standards can make the company more accurately reflect the company’s financial status.
This accounting estimate change of the company is made according to the actual use of the company’s transportation equipment, which will not have a significant impact on the company’s financial status and operating results, and will not damage the interests of the company and shareholders.
The decision-making procedures for the change of accounting policies and accounting estimates comply with the provisions of relevant laws, regulations and the articles of association. The board of supervisors of the company agrees with the change of accounting policies and accounting estimates.
5、 Opinions of independent directors
The change of the company’s accounting policy is made in accordance with the relevant provisions issued by the Ministry of finance, which will not have a significant impact on the company’s financial status and operating results, and will not have an impact on the net profit and shareholders’ equity attributable to the company’s shareholders. The decision-making procedures related to the change of accounting policies comply with relevant laws and regulations and the articles of association, and there is no damage to the interests of the company and shareholders.
The change of the company’s accounting estimate is made according to the actual use of the company’s transportation equipment. The decision-making procedures related to the change of accounting estimate comply with the provisions of relevant laws and regulations and the articles of association, and there is no damage to the interests of the company and shareholders.
6、 Documents for future reference
1. Resolutions of the 43rd meeting of the second board of directors;
2. Resolutions of the 25th meeting of the second board of supervisors;
3. Independent opinions of independent directors on matters related to the 43rd meeting of the second board of directors.
It is hereby announced.
Qiaoyin City Management Co.Ltd(002973) board of directors
April 27, 2022
