Funeng (600483): Changes In Accounting Policies

Fujian Funeng Co., Ltd. announcement on accounting policy change

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 shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

Important content:

This accounting policy change will not have a significant impact on the profit and loss, total assets and net assets of Fujian Funeng Co., Ltd. (hereinafter referred to as "the company").

1、 Summary of accounting policy changes

（1） Reasons for changes in accounting policies

On July 5, 2017, the Ministry of Finance issued the notice on the revision and printing of the accounting standards for Business Enterprises No. 14 (Accounting [2017] No. 22) (hereinafter referred to as the "new income standards"), which requires domestic listed companies to take effect from January 1, 2020. According to the requirements of the document, the company needs to adjust the original relevant accounting policies and implement them from January 1, 2020.

（2） Date of change of accounting policy

According to the regulations of the Ministry of finance, the company will implement the above new revenue standards from January 1, 2020.

（3） Accounting policies adopted by the company before the change

Before the change of accounting policies, the company implemented the accounting standards for Business Enterprises No. 14 - Revenue (hereinafter referred to as "the original revenue standards") and relevant provisions issued by the Ministry of Finance in 2006.

（4） Accounting policies adopted by the company after the change

After this change, the company will implement in accordance with the provisions of "accounting standards for Business Enterprises No. 14 - Revenue" issued by the Ministry of Finance in 2017. In addition to the above accounting policy changes, other unchanged parts shall be implemented in accordance with the "accounting standards for business enterprises - Basic Standards" and relevant specific standards, application guide of accounting standards for business enterprises, interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance in the early stage.

2、 Main contents of the accounting policy change

The revised income recognition standard includes the income transfer control of the current contract and the transfer of income

The same accounting treatment provides more clear guidance; for some specific transactions (or events) revenue recognition and measurement gives clear provisions.

3、 The impact of the accounting policy change on the company

The company will implement the new income standards from January 1, 2020. According to the provisions of the convergence between the old and new standards, the enterprises that implement the new income standards for the first time shall adjust the retained earnings at the beginning of the year of the first implementation of the new income standards and the amount of other relevant items in the financial statements according to the cumulative impact of the first implementation of the new income standards, and the information of the comparable period shall not be adjusted.

The company adjusts the amount of relevant items in the financial statements at the beginning of 2020 according to the cumulative impact of the first implementation of the new income standards. The main impacts of the items presented are as follows:

Unit: yuan currency: RMB

Consolidated balance sheet items

order

This accounting policy change will not have a significant impact on the company's profit and loss, total assets, net assets, etc.

It is hereby announced.

Board of directors of Fujian Funeng Co., Ltd

August 6, 2020