Stock Code: 002423 Stock Abbreviation: COFCO Capital Announcement No.: 2026-012
COFCO Capital Holdings Co., Ltd. Announcement on Changes in Accounting Policies
The Company and all members of the Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
COFCO Capital Holdings Co., Ltd. (hereinafter referred to as the "Company") held the seventh meeting of the Sixth Board of Directors on April 23, 2026, and deliberated and passed the "Proposal on Changes in Accounting Policies." In accordance with the requirements of the relevant policies issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry of Finance"), the Company intends to change its relevant accounting policies. Xinyong Zhonghe Certified Public Accountants has issued a special opinion on this change in accounting policies. This change in accounting policies does not require submission to the Company's shareholders' meeting for deliberation. The relevant matters are hereby announced as follows:
I. Overview of the Change in Accounting Policies
(I) Reason for the Change in Accounting Policies
The Ministry of Finance issued the "Implementation Answers to Questions on Accounting for Standard Warehouse Receipts Transactions" in July 2025. This guidance stipulates that if an enterprise frequently enters into contracts to buy and sell standard warehouse receipts in the futures market to earn price differences without taking delivery of the underlying physical goods, it generally indicates a practice of reselling the standard warehouse receipts within a short period after receiving them to profit from short-term fluctuations. Such contracts should be treated as financial instruments and accounted for in accordance with the provisions of "Accounting Standards for Business Enterprises No. 22 — Financial Instruments." If an enterprise resells standard warehouse receipts obtained under such contracts within a short period, it should not recognize sales revenue. Instead, the difference between the consideration received and the carrying amount of the sold standard warehouse receipts should be recognized as investment income. For standard warehouse receipts held by the enterprise at the end of the period that have not yet been sold, they should be reported as other current assets.