Henan Xinye Textile Limited By Share Ltd Announcements On Subsidiary Government Subsidies

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the announcement. There is no false record, misleading statement or major omission.

First, the basic situation of obtaining subsidies.

The basic situation of Henan Xinye textile Limited by Share Ltd subsidiary receiving government subsidies is shown below.

Exergy

Two, the type of subsidy and its impact on listed companies.

1, the type of subsidy.

According to the provisions of the accounting standards for Enterprises No. sixteenth - government grants (Accounting No. 2017] 15), government subsidies related to assets refer to the government subsidies obtained by enterprises for the purchase or construction or other forms of long-term assets, and the government subsidies related to income refer to government subsidies other than assets related government subsidies.

The above government grants are all income related government subsidies.

2. Confirmation and measurement of subsidies.

"Accounting standards for Enterprises No. sixteenth - government grants" stipulates that when a company receives government subsidies related to assets, it shall confirm that the income is included in the deferred income or the cost of related assets should be reduced according to the provisions. When the company receives the government subsidy related to income, it distinguishes whether it is related to the daily activities of the company. According to the accrual basis, it is recognized that other income or extra business income is included in the current profit and loss.

According to the above provisions, the company receives the above subsidy and related costs, and reduces related costs.

3, the impact of subsidies on listed companies.

The government subsidy received is expected to increase by 53 million 460 thousand yuan in the current year.

4, risk warning and other instructions.

The specific accounting treatment of this government subsidy shall be based on the results of the annual audit confirmation of the audit institutions. We invite investors to pay attention to investment risk.

Three. Reference documents

1. Government documents relating to grants;

2. Collection voucher;

3, other related documents.

Henan Xinye textile Limited by Share Ltd

Board of directors

April 2, 2020