Xiangtan Electrochemical reply: net financial expenses increased mainly due to a large drop information channels _ _ _ China accounting perspective network required to accountants - CPA | Certified Tax | Accounting titles | Senior Accountant | Accounting practitioners

The original title: Xiangtan Dianhua reply to the Shenzhen Stock Exchange inquiry: 2016 net profit more than 94% of the financial costs of the first drop evening, Electrification (002125, SZ) on the Shenzhen Stock Exchange The question of the inquiry is answered and announced. "daily News "reporter noted that the net , Net and business Trends do not match, is the primary concern of the Shenzhen Stock Exchange. In addition, during the reporting period, Xiangtan Electrochemical included in the current profits and losses 125,157 million, an increase of 31.46%, and the company's current period Of 56.27%, but also focus on the Shenzhen Stock Exchange. In this regard, Xiangtan Electrification in the reply letter made a special description. Reply letter, Xiangtan Electrochemical explained the rapid growth of government subsidies and accounting for half of the reasons for profitability and reduce the dependence on government subsidies to be taken to deal with. Xiangtan Electrochemical engaged in the main business for two aspects: chemical materials business and sewage treatment business. Chemical materials business leading products for the electrolytic manganese dioxide, used in a battery and secondary battery production. In 2016, Xiangtan Electrochemical realized operating income of 658 million yuan, an increase of 5.14%; net profit of 22.2407 million yuan, an increase of 94.49%. The same period, business activities generated Net 24,306,800 yuan, down 74.99%. From the data, Xiangtan Electric last year's net profit, business activities Net flows and operating income trends do not match. Therefore, the Shenzhen Stock Exchange asked Xiangtan Electrification to explain the reasons and rationality. In this regard, Xiangtan Electrification in the reply letter that the company's net profit rose 94.49% year on year the main reasons are as follows: First, Down 44.98% year on year, by the end of 2015 to raise funds in place, a large number of repayment last year Borrowed, reduced , An increase of 14.8667 million yuan; secondly, Down 87.87% year on year, no longer produce electrolytic manganese products last year, as well as the second half of electrolytic metal manganese market improved, offset by the previous provision 310.3 million yuan; again, An increase of 32.61%, mainly Other government grants, such as recruiting and energy-saving technological transformation bonuses, increased year-on-year. Prior to this, Xiangtan Dianhua card on behalf of circular round told Reporters, the company electrolytic manganese products in the same industry competition has no advantage and has been discontinued for several months, after the Xiangtan Electrochemical may not be produced. And for the operating activities of the net cash flow significantly reduced 72,886,500 yuan, and the trend of changes in net profit is not the main reason, Xiangtan Electrification is explained: last year to pay the previous year in arrears of medical insurance, housing provident fund, and pay VAT reasons, Leading to business deal Less than the same period last year; increase, Increase Of the increase in margin, resulting in the company operating receivables increased year on year; better sales last year, The balance decreased year on year; the end of 2015 to raise funds in place, the current repayment of a large number of bank loans to reduce the discount bills, decline. Over the past year, government subsidies increased by Xiangtan Electricity net profit soared 94.49% one of the reasons, and Xiangtan Electrification government subsidies accounted for half of the profits, which also attracted the attention of the Shenzhen Stock Exchange. Data show that Xiangtan Electric last year included in the current profits and losses of government subsidies 12.5157 million yuan, an increase of 31.46%, accounting for 56.27% of the company's current net profit. Therefore, the Shenzhen Stock Exchange asked Xiangtan to supplement the disclosure of the reasons and rationality. Xiangtan Electric in the reply letter that the government subsidies increased by 710.83 million yuan the main reason, first Sewage treatment limited liability company (hereinafter referred to as sewage treatment company) value-added tax that is refunded an increase of 366.27 million yuan, according to the relevant provisions of Xiangtan Sewage Company's sewage treatment services from 2015 Enjoy the value-added tax that is levy preferential policies, The ratio is 70%. 2016 annual VAT is levied for annual data, compared with half yearly data for 2015. Two is 2016 years 1 The company received Xiangtan City Finance Bureau allocated 200 million yuan of energy-saving emission reduction fiscal policy comprehensive model city incentive funds. The third is the company in 2016 Received the energy system to optimize the transformation of the project to obtain the second batch of energy-saving technological transformation of financial incentives 189.40 million yuan.