Securities code: Safbon Water Service (Holding) Inc.Shanghai(300262) securities abbreviation: Safbon Water Service (Holding) Inc.Shanghai(300262) Announcement No.: 2022043 Safbon Water Service (Holding) Inc.Shanghai(300262)
Announcement on correction and retroactive adjustment of accounting errors in the previous period
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.
Special tips:
1. The company adopts the retrospective restatement method to correct the previous accounting errors; After retroactive adjustment, the nature of profit and loss of the company's disclosed 2019 financial report will change.
2. The Company Apologizes for the inconvenience caused to the majority of investors by this retrospective adjustment. In the future, the company will continue to improve the level of governance and standardized operation, strive to improve the quality of information disclosure, and effectively protect the interests of the company and all shareholders.
Safbon Water Service (Holding) Inc.Shanghai(300262) (hereinafter referred to as "the company") held the 36th meeting of the 4th board of directors and the 27th meeting of the 4th board of supervisors on April 27, 2022, deliberated and adopted the proposal on correction and retroactive adjustment of accounting errors in the previous period, It is agreed to correct the company's previous accounting errors and supplement and correct the relevant information disclosed in the 2019 and 2020 annual reports in accordance with the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes or error correction of accounting policies and accounting estimates and the rules for the preparation of information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information. The details are as follows:
1、 Causes and contents of this correction of accounting errors
In 2019 and 2020, the company mistakenly adopted the financial accounting method of BOT for the project of Dongying District solid waste disposal center invested and constructed. This early accounting error correction involves 2020 and 2019. In 2020, inventories should be reduced by 1714824340 yuan, construction in progress should be increased by 12769965613 yuan, intangible assets should be reduced by 18283242069 yuan, and undistributed profits should be reduced by 7228100796 yuan; In 2019, the inventory should be reduced by 1714824340 yuan, the construction in progress should be increased by 11580767453 yuan, the intangible assets should be reduced by 17094043909 yuan, and the undistributed profit should be reduced by 7228100796 yuan; The operating income shall be reduced by 16711937869 yuan and the operating cost shall be reduced by 94837073 yuan.
2、 Impact of correction of accounting errors in the early stage on financial status and operating results
The company adopts the retrospective restatement method to correct the above accounting errors in the previous period, and the corresponding changes in 2020 and 2019
The annual consolidated financial statements have been retroactively adjusted. The impact of retroactive adjustment on the relevant subjects of the consolidated financial statements is as follows:
Year 2020
Affected comparison period report item name amount before restatement cumulative affected amount amount after restatement
Inventory 23385235147 -171482434021670410807
Construction in progress 10523626701158076745312633130123
Intangible assets 18504430109 -1709409
Undistributed profit 2 Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) 8036 -722810079612796147240
2019
Affected comparison period report item name amount before restatement cumulative affected amount amount after restatement
Inventory 66371748385 -171482434064656924045
Construction in progress 25367431961276996561315306708809
Intangible assets 27535637168 -182832420699252395099
Undistributed profit 67919685553 -722810079660691584757
Operating income 95897078177 -1671193786979185140308
Operating cost 62333927638 -948383707352850090565
This retroactive adjustment reduces the operating income of 2019 by 16711937869 yuan and the operating cost
9483837073 yuan, affecting the net profit of -7228100796 yuan in 2019. Before this retrospective adjustment, the company's net profit attributable to shareholders of listed companies and net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2019 were 8052536393 yuan and 3642314294 yuan respectively. After this retroactive adjustment, the company's net profit attributable to shareholders of listed companies and net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2019 were 824435597 yuan and -3585786502 yuan respectively.
3、 Assurance report of accounting firm on correction of financial statements
For the correction of accounting errors in the previous period, Zhonghua certified public accountants has issued Zhonghui Zi (2022) No
The retroactive restatement of the special audit report no. 04351 will lead to the change of the nature of profit and loss in the company's 2019 financial report. According to the relevant provisions of the rules for the preparation of information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information, the company is expected to complete the disclosure of the audited financial statements and audit reports after the correction of accounting errors within two months from the date of disclosure of this announcement.
4、 Opinions of the company's board of directors, independent directors and board of supervisors on this matter
1. Opinions of the board of directors
The board of Directors believes that the correction of accounting errors complies with the provisions of relevant documents such as accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors, rules for the preparation of information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information, and the corrected financial data and financial statements can objectively, accurately and truly reflect the company's financial position, operating results and cash flow, It is conducive to improving the quality of the company's financial information. Therefore, the board of directors agreed to the correction of accounting errors.
2. Opinions of independent directors
After verification, the adjustment and correction of previous errors comply with the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates or error correction and the preparation rules for information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information. The corrected financial data and financial statements can more objectively and fairly reflect the financial situation of the company. This early error correction does not harm the interests of the company and all shareholders, especially the minority shareholders. The deliberation and voting procedures of this early error correction comply with the relevant provisions of laws, regulations and the articles of association. We unanimously agree on this early error correction.
3. Opinions of the board of supervisors
The board of supervisors of the company believes that the correction of errors in the previous period involved in this time is in line with the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates or correction of errors and the preparation rules for information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information, and in line with the actual operation and financial situation of the company. It is agreed to correct and retroactively adjust the accounting errors in the previous period.
5、 Documents for future reference
1. Resolution of the 36th meeting of the 4th board of directors
2. Resolution of the 27th meeting of the 4th board of supervisors
3. Special instructions and independent approval opinions of independent directors on relevant proposals of the 36th meeting of the company 4 Special audit report of Zhonghua Certified Public Accountants (special general partnership) on the correction of accounting errors in the early stage of 3 Rongyu Group Co.Ltd(002622) 021
Safbon Water Service (Holding) Inc.Shanghai(300262) board of directors April 27, 2022
