Securities code: Safbon Water Service (Holding) Inc.Shanghai(300262) securities abbreviation: Safbon Water Service (Holding) Inc.Shanghai(300262) Announcement No.: 2022042 Safbon Water Service (Holding) Inc.Shanghai(300262)
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.
Safbon Water Service (Holding) Inc.Shanghai(300262) (hereinafter referred to as “the company”) deliberated and adopted the proposal on changes in accounting policies at the 36th meeting of the Fourth Board of directors and the 27th meeting of the Fourth Board of supervisors held on April 27, 2022. This accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation. The details of relevant accounting policy changes are as follows:
1、 Overview of changes in accounting policies
1. Reason and date of change of accounting policy
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 clarified the accounting treatment of social capital parties on government and social capital cooperation (PPP) project contracts. Interpretation No. 14 shall come into force from the date of promulgation, and the new relevant businesses from January 1, 2021 to the date of implementation shall also be adjusted according to the interpretation.
According to the requirements of the above documents, the company makes corresponding changes to the accounting policies of relevant PPP projects.
2. Accounting policies adopted by the company before change
Before the change of accounting policy, 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.
3. Accounting policies adopted by the company after change
After this accounting policy change, the company will implement the relevant provisions of Interpretation No. 14 revised and issued by the Ministry of finance. Other 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.
4. Change procedure
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 changes in accounting policies, and the independent directors expressed their independent opinions on the proposal. According to the relevant provisions of Shenzhen Stock Exchange GEM Listing Rules, Shenzhen Stock Exchange listed companies self regulatory guidelines No. 2 – standardized operation of GEM listed companies and other relevant provisions, the company’s accounting policy changes are within the approval authority of the board of directors and do not need to be submitted to the general meeting of shareholders for deliberation.
2、 Impact of this accounting policy change on the company
1. Main contents of this accounting policy change
The main contents of Interpretation No. 14 are as follows:
(1) Clarified the definition of PPP project contract and complied with “dual characteristics” and “dual control”;
(2) It clarifies the accounting treatment of government and social capital cooperation (PPP) project contracts by the social capital side, and the intangible asset model, financial asset model and mixed model should be adopted respectively according to different conditions.
2. Impact of this accounting policy change on the company
The company decided to implement the notice on printing and distributing the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1) from January 1, 2021. According to the provisions on the connection between the old and the new, the enterprise will implement the cumulative impact of this interpretation for the first time, adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year, and will not adjust the information of comparable periods. After the implementation of the change, the accounting policy has no significant impact on the company’s financial status, operating results and cash flow, and there is no damage to the interests of the company and all shareholders.
3、 Explanation on the rationality of the accounting policy change by the board of directors of the company
The board of directors of the company believes that the change of accounting policies is a reasonable change in accordance with the requirements of relevant documents of the Ministry of finance, in line with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, in line with the provisions of relevant laws and regulations and the articles of association, can more intuitively and fairly reflect the company’s financial situation and operating results, has no significant impact on the company’s financial statements, and does not damage the interests of the company and shareholders.
4、 Opinions of independent directors on changes in accounting policies
The company changes its accounting policies in accordance with the relevant provisions and requirements of the Ministry of finance, so that the company’s accounting policies comply with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange, can objectively and fairly reflect the company’s financial situation and operating results, and conform to the interests of the company and all shareholders. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws, regulations and the articles of association, and does not damage the rights and interests of the company and minority shareholders. Therefore, we agree to this accounting policy change.
5、 Opinions of the board of supervisors on changes in accounting policies
The board of supervisors of the company believes that the change of accounting policies complies with the relevant provisions of the Ministry of Finance and the new accounting standards and the actual situation of the company; Relevant decision-making procedures comply with relevant laws and regulations, the articles of association and other provisions, and there is no damage to the interests of the company and shareholders. Therefore, we agree to the change of the company’s accounting policy.
6、 Documents for future reference
1. Resolutions of the 36th meeting of the 4th board of directors;
2. Resolutions of the 27th meeting of the 4th board of supervisors;
3. Special instructions and independent opinions of independent directors on relevant matters of the 36th meeting of the Fourth Board of directors.
It is hereby announced.
Safbon Water Service (Holding) Inc.Shanghai(300262) board of directors April 27, 2022
