Changming Equipment Has Been Disposed Of

Changshan Beiming (000158) announced in the evening of July 13 that the company held the 9th meeting of the 8th board of directors on June 13, 2022, and deliberated and passed the proposal on disposal of idle and scrapped equipment. It is agreed that the company will transfer the above-mentioned equipment through public listing through state-owned property rights trading institutions, and the final transaction price and the transferee shall be determined according to the bidding results. As of the date of this announcement, all the above-mentioned equipment have been transferred through public bidding, and all the equipment disposal funds have been paid to the account.

On June 22, 2022, the company publicly listed the above disposal equipment in Hebei property market, and the final transaction price was 1.87 million yuan. The winning bidder was Gaoyang County Shihong textile machinery and equipment sales Co., Ltd. Based on the notice of dynamic quotation results issued by Hebei property market Co., Ltd., the company signed the asset transaction contract with the bid winner.

There is no related relationship between the winning party and the company, and the transaction between the company and the winning party does not constitute related party transaction.

As of July 13, 2022, the company has received all the disposal funds for the above-mentioned equipment. The loss (after deducting taxes and fees) formed by the disposal of idle assets this time is included in the profit and loss of the current year as the asset disposal loss. As the above equipment has the corresponding asset related government subsidies, the deferred income balance is 24.606 million yuan. According to the relevant provisions of the accounting standards for Business Enterprises No. 16 - government subsidies (revised in 2017), the company will recognize the asset disposal loss and transfer the relevant deferred income balance to the current profit and loss. Therefore, the disposal of assets will increase the company's profit of this year by 5.3113 million yuan, and the final impact amount shall be subject to the audit results of the accounting firm.