Xiangtan Electric Manufacturing adjusts accounting policies, names new auditor

Xiangtan Electric Manufacturing (SSE:600416) has announced changes to its accounting policies, primarily to align with the PRC’s updated enterprise accounting standards. Specifically, the company will now classify its quality assurance expenses as part of "operating costs," a shift that will impact both current and prior period financial statements, increasing operating costs and decreasing sales costs accordingly, but not affecting net profits. In addition to the change in accounting practices, the board also approved the hiring of a new auditor. Along with the changes, the board approved the termination of ongoing financial and loan service relationship with the accounting organization. These proposed changes, along with the auditor appointment, await shareholder approval at the company’s annual meeting.上会会计师事务所(特殊普通合伙) will serve as 2025 auditor, replacing [name]. Additionally, the proposed changes will provide the firm ￥580,000 for its services.