Securities code: 600237 Securities for short: Tongfeng Electronic Announcement Number: Lin 2021-021

Anhui Tongfeng Electronic Co., Ltd. on accounting policy change announcement

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.
The fifth meeting of the ninth Board of Directors and the fourth meeting of the ninth Board of Supervisors of Anhui Tongfeng Electronic Co., LTD. (hereinafter referred to as the "Company") respectively reviewed and approved the Motion on Accounting Policy Change. The details are as follows:
I. Overview of the accounting policy change
(I) Reasons for changes in accounting policies
In order to more accurately and reasonably reflect the actual operating profit of the Company's main products, polypropylene film, polypropylene recycled resin and waste material, the Company intends to change the production cost accounting method of this product from January 1, 2021, so as to more clearly, reasonably and completely reflect the production cost and actual profit of this product.
(2) The date of change of accounting policies
January 1, 2021
(3) Changes in accounting policies
The company's main product of polypropylene film ancillary product scraps, can be used for direct sale or reprocessing into polypropylene recycled resin.
1. Change the accounting policies adopted before
The waste material is not included in the production cost, the direct material cost of reprocessing the waste material into polypropylene regenerated resin is measured according to the fixed cost, and the remaining cost is borne by polypropylene film. Therefore, the production cost of polypropylene film collection is higher, the production cost of polypropylene regenerated resin collection is lower, and the waste material sold directly has no cost.
2. Accounting policies adopted after the change
The cost of scrap material is calculated by deducting reasonable gross profit from the market price. The direct material cost of polypropylene recycled resin is calculated by the product of the weight of scrap material consumed calculated by the proportion of scrap material consumed in the production of polypropylene recycled resin and the unit cost of scrap material.
Ii. The impact of the accounting policy change on the Company
The company's main products are produced in the form of industrial chain from polypropylene film to coating, and then to capacitors. It is impossible to trace the impact of polypropylene film products at the beginning of the period due to the change of production cost accounting method on the cost of downstream products. It is not feasible to determine the cumulative impact of the change of accounting policy on the previous periods, so the future application method is adopted.
The change of accounting policy is only a reasonable reflection of the operating profit of each product of polypropylene film. The adjustment of cost between polypropylene film, recycled resin and scrap material will not have a material impact on the overall production cost, will not have a material impact on the company's equity, net profit and other indicators, not to mention the retrospective adjustment of disclosed financial reports.
Iii. Review comments
(1) Opinions of the Board of Directors
The Board of Directors believes that the company's accounting policy change can more objectively and fairly reflect the company's financial position and operating results, improve the accuracy of the company's financial information, facilitate the company's management and investors to timely understand the company's real financial position and operating results, and conform to the actual situation of the company. This accounting policy change will not have a material impact on the company's financial statements. The board of directors of the company agreed to the accounting policy change.
(2) Opinions of the Board of Supervisors
The Board of Supervisors of the company believes that the change of the accounting policy of the company is in line with the relevant provisions and the actual situation of the company, and the decision-making procedure of the change of the accounting policy is in line with the provisions of relevant laws and regulations, and there is no harm to the interests of the company and minority shareholders.
(3) Opinions of independent directors
The independent director believes that the company's accounting policy change conforms to relevant regulations and the actual situation of the company, and does not harm the legitimate rights and interests of the company and shareholders, especially minority shareholders. The examination and approval procedures for changing accounting policies comply with relevant laws and regulations and the Articles of Association. Agreed to the proposed change in the company's accounting policy.
Iv. Documents for reference
1. Resolution of the fifth meeting of the ninth Board of Directors of the Company;
2. Resolution of the fourth meeting of the Ninth Supervisory Committee of the Company;
3. Independent opinions of the company's independent directors;
4. Rongcheng Certified Public Accountants (Special General Partnership) Special note on the change of the company's accounting policy
This is to announce.