Stock Code: Jilin Liyuan Precision Manufacturing Co.Ltd(002501) stock abbreviation: ST Liyuan Announcement No.: 2022028 Jilin Liyuan Precision Manufacturing Co.Ltd(002501)
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.
Jilin Liyuan Precision Manufacturing Co.Ltd(002501) (hereinafter referred to as “the company”) held the fourth meeting of the Fifth Board of directors and the third meeting of the Fifth Board of supervisors on April 28, 2022, and considered and adopted the proposal on changes in accounting policies, which does not need to be submitted to the general meeting of shareholders for deliberation. The specific situation is hereby announced as follows: I. overview of changes in accounting policies
1. Reasons for changes in accounting policies
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 shall enter into force as of the date of promulgation.
On December 30, 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”). The contents of this interpretation “accounting treatment for the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the R & D process” and “judgment on loss contracts” shall go into effect as of January 1, 2022; The content of “relevant presentation on centralized fund management” shall go into effect as of the date of promulgation.
The company changes the corresponding accounting policies in accordance with the above notice of the Ministry of finance.
2. 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, 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 after change
After the change of accounting policies, the company shall implement the interpretation of Standards No. 14 and interpretation of Standards No. 15, and the original provisions shall still be implemented if there is no change or the implementation date is not reached.
4. Change date
This accounting policy change will be implemented by the company on the starting date specified in the document issued by the Ministry of finance.
5. Approval procedure
The company held the fourth meeting of the Fifth Board of directors and the third meeting of the Fifth Board of supervisors on April 28, 2022, and deliberated and adopted the proposal on changes in accounting policies respectively.
2、 Impact of this accounting policy change on the company
The company will implement Interpretation No. 14 from January 27, 2021 and Interpretation No. 15 from December 31, 2021. The change of accounting policies will not have a significant impact on the company’s financial status, operating results and cash flow, nor damage the interests of the company and shareholders.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, this accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.
3、 Explanation of the board of directors on the rationality of accounting policy change
The board of directors of the company believes that the change of accounting policies complies with the accounting standards for business enterprises and relevant regulations, can more objectively and fairly reflect the company’s financial situation and operating results, provide investors with more reliable and accurate accounting information, will not have a significant impact on the company’s financial statements, and is in the interests of the company and all shareholders. The board of directors of the company agreed to the change of accounting policies.
4、 Opinions of independent directors
The independent directors of the company believe that the change of the company’s accounting policy is a reasonable change in accordance with the requirements of relevant documents issued by the Ministry of finance, in line with the accounting standards for business enterprises and relevant regulations, and there is no damage to the legitimate rights and interests of the company and all shareholders. The procedure of this change of accounting policy is in line with the provisions of relevant laws, regulations and the articles of association. We agree with the change of the company’s accounting policy.
5、 Opinions of the board of supervisors
The board of supervisors of the company believes that the change of the company’s accounting policy complies with relevant national policies and regulations, makes the financial data more in line with the actual situation of the company, can more accurately and reliably reflect the company’s financial situation, and does not damage the legitimate rights and interests of investors. It agrees with the change of accounting policy.
6、 Documents for future reference
1. Resolutions of the 4th meeting of the 5th board of directors of the company; 2. Resolutions of the third meeting of the 5th board of supervisors of the company; 3. Independent opinions of independent directors on matters related to the fourth meeting of the Fifth Board of directors.
Jilin Liyuan Precision Manufacturing Co.Ltd(002501) board of directors April 29, 2022
