Kangde Xin Composite Material Group Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
On April 26, 2021, the Company held the 22nd meeting of the 4th Board of Directors, which reviewed and approved the "Proposal on Changes in Accounting Policies." According to relevant regulations, the Company decided to implement the new leasing standards and commence accounting work starting January 1, 2021. The specific circumstances are announced as follows:
1. Overview of the Accounting Policy Change
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Reason for Change in Accounting Policies
On December 7, 2018, the Ministry of Finance revised and issued "Enterprise Accounting Standard No. 21 - Leases" (Cai Kuai [2018] No. 35), hereinafter referred to as "the new leasing standards," and required enterprises listed both domestically and abroad, as well as those listed abroad that prepare financial statements in accordance with International Financial Reporting Standards or national accounting standards, to implement these standards starting January 1, 2019; other domestic listed companies are required to implement them starting January 1, 2021. The Company has made corresponding changes to its accounting policies in accordance with the revised accounting standards, and this change falls under the category of "changes in accounting policies required by laws, administrative regulations, or national unified accounting systems." -
Date of Change in Accounting Policies
The above changes will be implemented starting from the effective date specified in the relevant documents of the Ministry of Finance.