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Accounting policy change announcement
-2018-12-07-

        Shenzhen Chunwang Environmental Protection Technology Co., Ltd. was founded in 1998. It is a professional desiccant manufacturer dedicated to the research and development, production and sales of desiccants, food deoxidants and other products. The following is the content of the announcement of changes in the company's accounting policy.


Announcement number: 2018-006

Stock Code: 831880 Stock Abbreviation: Chunwang Environmental Protection Sponsored By: Founder Securities

Shenzhen Chunwang Environmental Technology Co., Ltd.

Accounting policy change announcement

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, without false records, misleading statements or major omissions, and assume individual and joint legal responsibility for the authenticity, accuracy and completeness of the contents.

I. Overview of changes

(1) Date of change: Accounting policy issued by the Ministry of Finance (Caihui [2017] No. 13),

(Accounting [2017] No. 15) and (Accounting [2017] No. 30) notices will come into effect on the effective date.

(2) Introduction of changes

1. Accounting policies adopted before the change

Prior to this change, the company's accounting policies were implemented in accordance with the "Enterprise Accounting Standards-Basic Standards" and 38 specific accounting standards issued by the Ministry of Finance on February 15, 2006, as well as the Application Guidelines for Accounting Standards for Business Enterprises and Accounting Standards for Business Enterprises issued thereafter. Interpret announcements and other relevant regulations.


2. Accounting policies adopted after the change

(1) The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 16-Government Subsidies (Accounting [2017] No. 15) in 2017. The revised standards will be implemented from June 12, 2017. For January 2017 The government subsidies existing on the 1st are required to be handled by the future applicable method; the government subsidies newly added from January 1, 2017 to the implementation date are also required to be adjusted in accordance with the revised guidelines.

The Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 42-Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations" in 2017 (Caihui [2017] No. 13). The new standard starts on May 28, 2017. Implementation, non-current assets held for sale, disposal groups, and termination of operations that existed on the date of implementation will be treated using future applicable methods.


(2) In response to the amendments to the above two accounting standards, the Ministry of Finance issued the “Notice of the Ministry of Finance on Revising the Issuance of the Format of Financial Statements of General Enterprises” (Caihui [2017] No. 30) in 2017, and carried out the format of financial statements of general enterprises Revision, implementation company

Accounting standards companies should prepare financial statements for 2017 and beyond in accordance with the requirements of the Accounting Standards for Business Enterprises and the notice.


(3) Reason for change

According to the relevant policies and notices issued by the Ministry of Finance, the company needs to make corresponding changes to the original accounting policies.


Voting and deliberations

(I) Board review

On April 13, 2018, the company held the eighth meeting of the second session of the board of directors to consider and pass the "Proposal on the Change of the Company's Accounting Policies". The voting results were: 5 votes in favor, 0 votes against, and 0 abstentions. According to the company's articles of association, changes to the above accounting policies need not be submitted to the shareholders' general meeting for review and approval.


3. Explanation of the Board of Directors on the rationality of this change in accounting policy


The board of directors of the company considers that this change in the company's accounting policy is a change in accordance with the requirements of laws, administrative regulations or the country's unified accounting system. The revised accounting policy complies with the relevant regulations of the Ministry of Finance, China Securities Regulatory Commission, and the National Small and Medium-Sized Enterprise Share Transfer System, can objectively and fairly reflect the company's financial status and operating results, and meet the requirements of relevant laws, regulations and company articles of association. There is no situation that harms the interests of the company and shareholders. This change in accounting policy has no significant impact on the company's financial position, operating results and cash flow. The board of directors approved the change of the company's accounting policy.


4. Opinions of the Board of Supervisors on the changes in this accounting policy

On April 13, 2018, the company convened the third meeting of the second session of the Supervisory Committee to consider and approve the "Proposal on Changes in the Company's Accounting Policies." Changes in accounting system requirements. The revised accounting policy complies with the relevant regulations of the Ministry of Finance, China Securities Regulatory Commission, and the National SME Share Transfer System, can objectively and fairly reflect the company's financial status and operating results, and meets the requirements of relevant laws, regulations and company articles of association. There is no situation that harms the interests of the company and shareholders, and this change in accounting policy has no significant impact on the company's financial position, operating results and cash flow. The board of supervisors agreed to the change in the company's accounting policies.


V. Impact of this change in accounting policy on the company

This change in the company's accounting policy was made in accordance with the regulations of the Ministry of Finance of the People's Republic of China. The specific changes and the amount of adjustments to the previous statements are subject to the conditions disclosed in the 2017 Annual Report. This change in accounting policy conforms to the relevant legal requirements and the actual situation of the company, and can more objectively and fairly reflect the company's financial status and operating results, and there is no situation that harms the interests of the company and small and medium shareholders.


Six, files for reference

(1) "The Resolution of the Eighth Meeting of the Second Board of Directors of Shenzhen Chunwang Environmental Technology Co., Ltd." signed and confirmed by the directors

(2) "The Resolution of the Third Session of the Second Session of the Supervisory Committee of Shenzhen Chunwang Environmental Technology Co., Ltd." signed and confirmed by the supervisors


Shenzhen Chunwang Environmental Technology Co., Ltd.

Board of Directors

April 16, 2018


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