China Industrial Securities adjusts accounting policy for warehouse receipts

China Industrial Securities announced an accounting policy change, effective January 1, 2025, to align with a new accounting standard from the Ministry of Finance concerning standard warehouse receipt transactions. Previously, the company recognized gross revenue and costs for frequent buy-and-sell transactions of standard warehouse receipts, but will now record only the difference between the collected consideration and the book value of the receipts as investment income. This change will be applied retrospectively, with the company adjusting its H1 2024 financial statements. The retrospective adjustment will reduce other operating income by 1.218 bn yuan and other operating costs by 1.195 bn yuan, while increasing investment income by 22.226 million yuan.

The company stated that this accounting policy change, implemented in accordance with new regulations, will not require approval from the board of directors or shareholders and is not expected to significantly impact the company's financial position, operating results, or cash flow.