Kaired Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Kaired") guarantees that the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.
Important Content Reminder:
According to the relevant provisions of the "Enterprise Accounting Standards No. 28 - Changes in Accounting Policies, Accounting Estimates and Corrections of Errors," Kaired Holdings Co., Ltd. adopts the future applicability method for this accounting estimate change, and there is no need to retrospectively adjust the previously disclosed financial reports, thus it will not affect the disclosed financial statements.
On January 28, 2021, Kaired Holdings Co., Ltd. held the 31st meeting of the 7th Board of Directors and the 15th meeting of the 7th Supervisory Board, which reviewed and approved the "Proposal on Changes in Accounting Policies and Accounting Estimates." The specific circumstances are announced as follows:
I. Overview of Changes in Accounting Policies and Their Impact on the Company
-
Reason for Change
According to the "Enterprise Accounting Standards No. 21 - Leases" revised and issued by the Ministry of Finance of the People's Republic of China in December 2018 (hereinafter referred to as "New Leasing Standards"), enterprises listed both domestically and abroad, as well as those listed abroad and preparing financial statements in accordance with International Financial Reporting Standards or Enterprise Accounting Standards, are required to implement these standards starting January 1, 2019. Other enterprises implementing Enterprise Accounting Standards will implement them starting January 1, 2021. In accordance with the requirements of the New Leasing Standards, the Company has decided to implement the new leasing standards starting January 1, 2021, and to make corresponding changes to the relevant accounting policies previously adopted. -
Date of Change
The Company will implement the New Leasing Standards starting January 1, 2021, in accordance with the relevant guidelines and notifications from the Ministry of Finance. -
Previous Accounting Policies
Before this change, the accounting policies implemented by the Company were based on the "Enterprise Accounting Standards No. 21 - Leases" issued by the Ministry of Finance in 2006 and its related provisions. -
Post-Change Accounting Policies
After this change, the Company will implement the "Enterprise Accounting Standards No. 21 - Leases" revised and issued by the Ministry of Finance in 2018. Other unchanged parts will still be executed according to the previously issued "Enterprise Accounting Standards - Basic Standards" and various specific accounting standards, application guidelines, interpretations, and other relevant provisions.