Some investors asked questions on the investor interaction platform: Hello, Secretary! I saw in the company’s 2021 annual report “asset independence” that “the company independently and completely owns the supporting facilities required for production and operation, and legally owns the land use right, house ownership, machinery and equipment and intellectual property rights…” my question is: since the houses used by the company’s production and operation are not rented, why is there no depreciation of “houses and buildings” in the “depreciation of fixed assets” method? Is it a missed report? If there is depreciation method and depreciation year, please specify the depreciation rate!
Junxin Co., Ltd. (301109. SZ) said on the investor interaction platform on May 18 that the company disclosed the fixed assets in “v. main assets” of “section VI business and technology” of the prospectus: the fixed assets used by the company mainly include machinery and equipment, transportation equipment and office equipment, excluding houses and buildings. The company’s houses and buildings are formed from the acquisition and construction of franchise projects and belong to franchise assets. The company is listed in the category of intangible assets and amortized by the straight-line method, as follows: 1. Franchise projects (amortization period: 25-30 years, based on: franchise period); 2. Software project (amortization period: 3-5 years, basis: estimated economic service life)
