Securities code: Hubei Xingfa Chemicals Group Co.Ltd(600141) securities abbreviation: Hubei Xingfa Chemicals Group Co.Ltd(600141) Announcement No.: pro 2022042 Hubei Xingfa Chemicals Group Co.Ltd(600141)
Announcement on correction of previous accounting errors
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Hubei Xingfa Chemicals Group Co.Ltd(600141) (hereinafter referred to as “the company”) held the 10th meeting of the 10th board of directors and the 10th meeting of the 10th board of supervisors on May 22, 2022. The proposal on correction of accounting errors in the early stage was considered and adopted by unanimous vote, The company agrees to correct the company’s accounting errors in the previous period in accordance with the relevant provisions of the accounting standards for Business Enterprises No. 28 – changes in accounting policies and accounting estimates or correction of errors (hereinafter referred to as the “accounting standards for Business Enterprises No. 28”) 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 (hereinafter referred to as the “rules for the preparation of information disclosure No. 19”). The details are hereby announced as follows:
1、 Causes and specific matters of correction of accounting errors in the early stage
(I) reasons for correction
On December 29, 2021, the company held the 7th Meeting of the 10th board of directors, deliberated and adopted the proposal on the acquisition of 100% equity of Ningtong logistics by a wholly-owned subsidiary and related party transactions, Yidu Xingfa Chemical Co., Ltd. (hereinafter referred to as “Yidu Xingfa”), a wholly-owned subsidiary of the company, intends to acquire 100% equity of Yidu Ningtong Logistics Co., Ltd. (hereinafter referred to as “Ningtong logistics”) held by Yichang Hubei Xingfa Chemicals Group Co.Ltd(600141) Co., Ltd. (hereinafter referred to as “Yichang Xingfa”) with its own funds (see announcement: p.2021105 for details). In January 2022, Yidu Xingfa completed the acquisition of equity of Ningtong logistics. This transaction is a transaction in which the company obtains subsidiaries through business combination under the same control, and the financial data of the company shall be retroactively adjusted.
According to the interpretation of accounting standards for Business Enterprises No. 6: in a business combination under the same control, the assets and liabilities obtained by the combining party in the business combination shall be measured according to the book value of the combined party on the combination date. In the case that the combined party is the final controller and acquired from a third party in the previous year, when preparing the financial statements, the combining party shall be regarded as the reporting entity formed after the combination from the time when the final controller begins to implement control, If it has been integrated for a long time, relevant accounting treatment shall be carried out on the basis of the book value of the combined party’s assets and liabilities (including the goodwill formed by the final controller’s acquisition of the combined party) in the final controller’s financial statements.
Through self inspection, the company found that Yichang Xingfa, the controlling shareholder of the company, did not prepare the consolidated financial statements in strict accordance with the relevant provisions of the accounting standards for business enterprises when acquiring the equity of Ningtong logistics from a third party in 2019. Therefore, the company needs to correct the errors in the financial statements in the first quarter of 2022.
(II) correction of accounting errors
After retroactive adjustment, the company’s consolidated financial statements for the first quarter of 2022 are corrected as follows:
1. Impact on the consolidated balance sheet:
Unit: Yuan
Change variance before and after project correction
Fixed assets 168562720477816880412402382414035460
Intangible assets 219004939116219611332838606393722
Goodwill 83043822259840755225971031700338
Deferred income tax assets 1489065773914819116671 -71541068
Total non current assets 267497539194626789559803983980588452
Total assets 358792992133235919105097843980588452
Taxes payable 9006085932090060940947 816.27
Total current liabilities 12689296527481268929734375 816.27
Deferred income tax liabilities 157436612501 Anhui Conch Cement Company Limited(600585) 5072262193822
Total non current liabilities 567245336556567507530378262193822
Total liabilities 18361749893041836437264753262275449
Capital reserve 6248232147196302498586085426643889
Surplus reserve 5276920290352741123766 -28079137
Undistributed profit 773093192938771412941189 -1680251749
Total owner’s equity attributable to the parent company 155634937864915 Shanghai Jiao Yun Group Co.Ltd(600676) 916523718313003
Total owner’s equity 175493202817554732450313718313003
Total liabilities and owner’s equity 358792992133235919105097843980588452
The total assets increased by 3980588452 yuan, including 2414035460 yuan for fixed assets, 606393722 yuan for intangible assets, 1031700338 yuan for goodwill and 71541068 yuan for deferred income tax assets.
The total liabilities increased by 262275449 yuan, including 816.27 yuan of tax payable and 262193822 yuan of deferred income tax liabilities.
The owner’s equity increased by 3718313003 yuan, including 5426643889 yuan of capital reserve, 28079137 yuan of surplus reserve, 1680251749 yuan of undistributed profit and 3718313003 yuan of owner’s equity attributable to the parent company.
2. Impact on consolidated income statement:
Unit: Yuan
Change variance before and after project correction
Total operating cost 60730371757060732335172119634151
Operating cost 5495496986395495580965858397946
Financial expenses 9897760473990899667811236205
Interest expense 8678189765868942597011236205
Credit impairment loss -2723330829 -2904716715 -181385886
Asset impairment loss -224500971 -399405904 -174904933
Operating profit 259898648814259522723844 -375924970
Total profit 259492279879259116354909 -375924970
Income tax expense 4748805827247482685561 – 5372711
Net profit 212004221607211633669348 -370552259
Net profit from continuing operations
Net profit attributable to the owner of the parent company 172347263588171976711329 – 370552259
Total comprehensive income 211907264121211536711862 -370552259
Total comprehensive income attributable to the owner of the parent company: 172185943548171815391289 – 370552259
Operating costs increased by 8397946 yuan and financial expenses increased by 11236205 yuan; Credit impairment loss increased by 181385886 yuan and asset impairment loss increased by 174904933 yuan.
The operating profit decreased by 375924970 yuan, the total profit decreased by 375924970 yuan, the income tax expense decreased by 5372711 yuan, the net profit decreased by 370552259 yuan, and the net profit attributable to the owner of the parent company decreased by 370552259 yuan.
3. Impact on consolidated cash flow statement:
Unit: Yuan
Change variance before and after project correction
Net cash paid from subsidiaries and other business units: 255636410192096718085 -23466922934
Subtotal of cash outflow from investment activities 6502162663541554703701 – 23466922934
Net cash flow from investment activities -63786816495 -4031989356123466922934
Cash paid for other financing activities 24416469512635895695123917310000
Subtotal of cash outflow from financing activities 29023987004031415718004023917310000
Net cash flow from financing activities
