Meng Jie Home Textiles: Home Textile Enterprises Or High-Tech Enterprises?

　　 Dream home textiles In the near future, it was announced that it was successfully re examined through high-tech enterprises in March. This means that in the 3 years since 2011, it has continued to enjoy a preferential income tax rate of 15% (the general corporate income tax rate is 25%).

A home textile company with more than 99% of its sales income from bedding has been identified for many years. High tech Enterprises And enjoy the corresponding tax benefits - it is the dream home textile (002397).

　　 How is the "dream home textile" identified by high-tech enterprises?

According to the reporter's investigation, the R & D expenses of the high-tech company's qualification reexamination materials submitted by the dream home textiles to the relevant departments are much more than that of the prospectus and the combined reports of parent companies and subsidiaries in the annual reports, and the difference is huge. In this regard, the vice president of Meng Jie home textile and Li Jun, an executive director, explained that the accounting staff were "not solid", and the amount of collection was incomplete, and the actual R & D expenses were more.

Two R & D costs in the report are inverted.

According to regulations, when enterprises declare high and new technology qualification, they must provide special audit reports issued by third party organizations. The reporter recently obtained the special audit report of the high and new technology enterprise that was issued by the Hunan to the letter tax office limited liability company for Meng Jie home textile. The reporters found that some financial data contained in the special audit report were inconsistent with the financial data in the annual report of Meng Jie home textile and the prospectus.

According to the special audit report, in the period of 2008~2010, the total cost of research and development was 58 million 930 thousand and 700 yuan, of which 17 million 816 thousand and 100 yuan and 23 million 634 thousand and 600 yuan were in 2009 and 2010 respectively. In the 2010 annual report of Meng Jie home textile, the "research and development fees" in 2009 and 2010 were 4 million 514 thousand and 800 yuan and 6 million 306 thousand and 900 yuan respectively, with only about 1/4 of the special audit report data. The annual reports and special declarations were used in the two words of "research and development fee" and "research and development cost".

For the difference in financial data, Li Jun, vice president and manager of Meng Jie home textile, explained to reporters that when declaring high and new technology qualification, only the qualification of the parent company was identified, so the data of several wholly owned subsidiaries were stripped.

Chen Zhigang, chief executive of the 2010 annual report of Meng Jie home textiles, and partner of Shenzhen branch of the international accounting firm, also said that when a special audit report is made, the parent company can be regarded as an independent accounting entity.

Then, according to Li Jun's explanation, the annual report uses the consolidated statements of parent company and subsidiary company. The special audit report only uses the report of the parent company. Then, the "research and development cost" contained in the annual report of the subsidiary's R & D expenses should be higher than the "research and development expenses" in the special audit report. However, the opposite is true: in the special audit report, the "research and development expenses" in 2009 and 2010 were 13 million 300 thousand yuan or 17 million 330 thousand yuan higher than the "research and development fee" in the annual report.

Secretaries: financial accounting is not solid.

The consolidated statement data is lower than the parent company's data. Is it because of the statistical standard of "research and development cost" and "research and development fee"?

Reporters found two documents: one was issued by the Ministry of Finance in September 4, 2007, "some opinions on strengthening financial management of R & D expenses for enterprises" (hereinafter referred to as "opinions"); the other was the guidelines issued by the Ministry of science and technology, the Ministry of Finance and the state Administration of Taxation in 2008 for the identification and management of high and new technology enterprises (hereinafter referred to as "work guidelines").

Comparing the opinions and work guidelines, it is easy to find out which fees in the two documents can be charged to R & D expenses, and the scope of their collection is in line with the standards. That is to say, if strictly operated according to the two documents, the R & D data in the annual report of Meng Jie home textile should be consistent with the data in the special audit report.

When it comes to data inconsistency, Li Jun's response is that the company has established a research and development cost ledger according to the state regulations, but the financial staff do not make a solid account. The amount of collection is incomplete, and the actual R & D expenses are more. Li Jun explained in detail that printing every flower pattern on cloth is called a print version, and it costs tens of thousands of dollars at a time. Each year, more than 200 new products are counted at 50 thousand yuan each, amounting to at least 120 million yuan. In the annual report, this part of the cost is included in the cost of production.

In the annual report, the cost of production included in the annual report, but why did Meng Jia textile enter the "R & D cost" when applying for high and new technology qualifications? When the reporter asked Chen Zhigang about this, he refused to provide any explanation and explanation on the statistical scope of "research and development fee" in the annual report of Meng Jie home on the grounds of "keeping secret to the customers, being responsible to the customers, and responsible to the investors", and indicated that he could not provide relevant data. {page_break}

　　 How to review the dream home textiles?

In the special audit report, all indicators of Meng Jie home textile reached the requirements of high-tech enterprises, and passed the reexamination smoothly. However, we must reach a series of rigid indicators through identification. For example, the total research and development expenses in nearly 3 fiscal years accounted for no less than 3% of total sales revenue.

Although the index in the special audit report is up to the standard, if the data of the 2010 annual report issued by the professional accounting firm to Meng Jie home textile company are calculated, the R & D expenses in 2010 will only account for 0.74% of the business income, and only 0.72% in 2009.

In April 18th, the reporter came to the leading group office of Hunan high and new technology industry development (hereinafter referred to as Hunan high tech Office). A staff member said that the provincial high-tech office was highly strict in assessing high-tech enterprises, and the relevant departments had a strict examination and approval process. At the request of reporters, the staff came up with a thick review material for Meng Jie home textiles and introduced the related situation. But when the reporter asked for photocopying or taking pictures, he was asked to go to the office of Hunan provincial science and technology office for interview. Later, in the Secretariat of the office of Hunan science and technology office, a staff member also said that the interview should be sought at the information center of the provincial science and technology department. Reporters came to the news center, a surnamed Wang staff said that the Department is only responsible for external publicity, not responsible for handling the interview with the high tech office.

On the afternoon of April 18th, in his personal capacity, the reporter submitted an application form for government information disclosure to the relevant departments of the Hunan provincial science and technology office in accordance with the relevant regulations of the Government Information Disclosure Ordinance, and asked Hunan high tech office to make public the review materials for the dream home textiles.

In April 26th, the reporter contacted the high tech Office of Hunan province again. A staff member said that the information for journalists to apply for publicity can not be disclosed openly, because it may involve secrets that can not be disclosed. Is the review material of Meng Jie home textile belong to the public range?

Although the reporters do not want to photocopy the rechecking materials, the above Hunan provincial high tech office staff told reporters that in 2008, when the Meng Jie home textile was rated as a high-tech enterprise, experts from the provincial high tech office went to the company for on-site inspection. In 2010, no further investigation was conducted. However, if some people think that the dream home textile is rated as a high-tech enterprise, it can be applied to the provincial high tech field for follow-up investigation.

The staff also said that the provincial high tech office and experts will not go to each company to apply for the inspection, because there is no relevant rigid regulations, two due to insufficient manpower.

Does the dream home textile belong to the "three level catalogue of high and new technology supported by the state"? The staff said that the traditional industries also have room for improvement. Some enterprises do not seem to be in the scope of catalogues. For example, Meng Jie home textiles, although mainly produces bedding, but its fabrics, insulation materials and other high technology, so it belongs to the "new material technology field" to apply for and be commended. However, Li Jun, vice president and manager of Meng Jie home textile, told reporters that the company did not independently develop new materials. Some new materials were developed jointly with other manufacturers. Some of them were originally high-tech products.

On the website of the State Patent Office, reporters also found no patent for new home materials. The definition of "research and development" is clearly defined in the aforementioned work guidelines: "excluding activities such as routine upgrading of enterprises or direct application of a scientific research achievement, such as the direct adoption of new processes, materials, devices, products, services or knowledge, etc.".

When we apply for the qualification of high-tech enterprises, is there any illegal operation?