Securities code: Hangzhou Century Co.Ltd(300078) securities abbreviation: Hangzhou Century Co.Ltd(300078) Announcement No.: 2022047 bond Code: 123096 bond abbreviation: Sichuang convertible bond
Hangzhou Century Co.Ltd(300078)
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.
Hangzhou Century Co.Ltd(300078) (hereinafter referred to as "the company") held the 9th meeting of the 5th board of directors, the 8th meeting of the 5th board of supervisors and the 3rd meeting of the audit committee of the 5th board of directors on April 27, 2022, deliberated and adopted the proposal on correction and retroactive adjustment of accounting errors in the previous period, It is agreed that the company will correct the company's previous accounting errors and supplement and correct the relevant information disclosed in the 2020 annual report 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 correction of accounting errors in the early stage
Yihui Technology Co., Ltd., a wholly-owned subsidiary of the company, cooperated with Hangzhou wenran Information Technology Co., Ltd. to carry out hospital medical waste operation business. After re combing the relevant transaction process in 2021, the company found that some revenue recognition basis in 2020 was insufficient. The company used the retrospective adjustment method to correct the errors of the involved revenue, resulting in inaccurate presentation of relevant items in the financial statements. The retroactive adjustment method is adopted to adjust the presentation of relevant financial statement accounts as follows:
1) Accounts receivable
At the end of 2020, the adjustment of accounts receivable in the consolidated balance sheet decreased by 1612110346 yuan.
2) Intangible assets
At the end of 2020, the adjustment of intangible assets in the consolidated balance sheet increased by 362543410 yuan.
3) Deferred income tax assets
At the end of 2020, the adjustment of deferred income tax assets in the consolidated balance sheet decreased by 12727187 yuan.
4) Taxes payable
At the end of 2020, the adjustment of taxes payable in the consolidated balance sheet decreased by 219890302 yuan.
5) Undistributed profit
At the end of 2020, the adjustment of undistributed profits in the consolidated balance sheet decreased by 1042403821 yuan.
6) Operating income and operating cost
At the end of 2020, the adjustment of operating income in the consolidated income statement decreased by 1600904018 yuan; The adjustment of operating costs decreased by 362543410 yuan.
7) Credit impairment loss
At the end of 2020, the adjustment of credit impairment loss in the consolidated income statement increased by 84847913 yuan.
8) Income tax expense
At the end of 2020, the adjustment of income tax expenses in the consolidated income statement decreased by 111108874 yuan.
9) Cash paid for purchasing goods and receiving labor services
At the end of 2020, the cash adjustment of purchasing goods and receiving labor services in the consolidated cash flow statement decreased by 362543410 yuan.
10) Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets
At the end of 2020, the cash adjustment paid for the purchase and construction of fixed assets, intangible assets and other long-term assets in the consolidated cash flow statement increased by 362543410 yuan.
2、 Impact of correction of accounting errors in the early stage on the company's financial status and operating results
The company adopts the retrospective restatement method to correct the previous errors, and makes retrospective adjustments to the financial statements of the 2020 annual report accordingly. After retroactive adjustment, it will not lead to changes in the nature of profit and loss in the relevant annual statements disclosed by the company. The details are as follows:
1. Consolidated financial statements
(1) Consolidated balance sheet items
1. December 31, 2020 unit: Yuan
Amount before project adjustment amount after adjustment
Accounts receivable 102910899972 -1612110346101298789626
Intangible assets 1528434896436254341015646892374
Deferred income tax assets 3689189934 -127271873676462747
Total assets 472232186247 - 1262294123470969892124
Taxes payable 7601403580 -2198903027381513278
Total liabilities 172367654616 -219890302172147764314
Undistributed profit 68223677495 -104240382167181273674
Total owner's equity attributable to the parent company 294591086844 -1042403821293548683023
Amount before project adjustment amount after adjustment
Total owner's equity 299864531631 -1042403821298822127810
Total liabilities and owner's equity 472232186247 -1262294123470969892124
(2) Consolidated income statement items
1. 2020 unit: Yuan
Amount before project adjustment amount after adjustment
Operating income 147126474310 -1600904018145525570292
Operating cost 86025681227 -36254341085663137817
Credit impairment loss -748739142384847913 -7402543510
Income tax expense 1833081679 -1111088741721972805
Net profit 10696 Guangdong Shenling Environmental Systems Co.Ltd(301018) -10424038219653897197
Net profit attributable to owners of the parent company: 10489355797 -10424038219446951976
Total comprehensive income 10362429093 -1042403821932 Shanghai Step Electric Corporation(002527) 2
Total comprehensive income attributable to owners of parent company: 10303108064 -10424038219260704243
(3) Consolidated cash flow statement items
1. 2020 unit: Yuan
Amount before project adjustment amount after adjustment
Cash paid for purchasing goods and receiving labor services 63545772327 - 36254341063183228917
Subtotal of cash outflow from operating activities 148749085631 - 362543410148386542221
Net cash flow from operating activities -1370736329362543410 -1008192919
Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets 4776867601436254341048131219424
Subtotal of cash outflow from investment activities 14539 Jiangsu Yida Chemical Co.Ltd(300721) 4362543410145755550624
Net cash flow from investment activities -45987230683 -362543410 -46349774093
3、 Opinions of the board of directors
The correction of the company's previous accounting errors complies with the relevant provisions and requirements of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and error correction, 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. This correction is conducive to improving the quality of the company's financial information.
Therefore, the board of directors of the company agreed to the correction and retroactive adjustment of accounting errors.
4、 Opinions of the board of supervisors
The correction of the company's accounting errors in the previous period complies with the relevant provisions and requirements of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and error correction 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 corrected financial data and financial statements can more objectively and truly reflect the company's financial situation, There is no situation that damages the interests of the company and all shareholders. Therefore, the board of supervisors of the company agreed to the correction and retroactive adjustment of accounting errors.
5、 Opinions of independent directors
The correction and retroactive adjustment of accounting errors comply with the relevant provisions and requirements of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors 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, which helps to objectively and truly reflect the financial status and operating performance of the company in the relevant accounting period, and does not damage the company and all shareholders, Especially the interests of minority shareholders. Therefore, we agree to this correction.
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. The information disclosure media designated by the company are securities times and cninfo（ http://www.cn.info.com.cn./ ）, all information of the company is subject to the announcement published in the above media. Please pay attention to the investment risks.
It is hereby announced.
Hangzhou Century Co.Ltd(300078) board of directors
April 29, 2022
