Securities code: Jihua Group Corporation Limited(601718) securities abbreviation: Jihua Group Corporation Limited(601718) Announcement No.: pro 2022013 Jihua Group Corporation Limited(601718)
Announcement on receiving government subsidies
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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
1、 Basic information of obtaining government subsidies
Jihua Group Corporation Limited(601718) (hereinafter referred to as “the company” or “the company”) and its subsidiaries received 2928740886 yuan of various government subsidies (Unaudited) from January 1, 2022 to April 24, 2022. Details are as follows:
Unit: Yuan
Sequence subsidy item subsidy amount payment time category
number
(I) government subsidies related to assets
1. The subsidy for the construction of natural disaster prevention and control system is 505000000, which is related to assets in February 2022
(II) government subsidies related to income
1. The special subsidy of 964000000 is related to income in January 2022
2. The urban supporting fee is 771790000, which is related to income in January 2022
3. The special fund 210000000 is related to income in January 2022
4. Summary of single government subsidy of less than 2 million yuan 477950886 from January 2022 to April 2022 (32 in total) related to income
Subtotal of government subsidies related to income 2423740886
Total government subsidies 2928740886
2、 Types of subsidies and their impact on Listed Companies
According to the relevant provisions of the accounting standards for Business Enterprises No. 16 – government subsidies, government subsidies are divided into asset related government subsidies and income related government subsidies.
1. Government subsidies related to assets shall offset the book value of relevant assets or be recognized as deferred income. If the government subsidies related to assets are recognized as deferred income, they shall be included in the profits and losses by stages according to a reasonable and systematic method within the service life of the relevant assets. Government subsidies measured in nominal amount are directly included in current profits and losses.
2. Government subsidies related to income, which are used to compensate the relevant costs or losses of the enterprise in the future, shall be recognized as deferred income, and shall be included in the current profit and loss or offset the relevant costs during the period when the relevant costs or losses are recognized; If it is used to compensate the relevant costs or losses incurred by the enterprise, it shall be directly included in the current profit and loss or offset the relevant costs.
As of the date of this announcement, the above subsidies have been received. The specific accounting treatment of the above government subsidies and their impact on the company’s annual profits are subject to the annual audit results of the accountants. Please pay attention to the investment risks.
It is hereby announced.
Jihua Group Corporation Limited(601718) board of directors
April 27, 2002
