Zhongjin Lingnan adjusts accounting policy for standard warehouse receipts
Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. announced a change in its accounting policy, effective January 1, 2025, to comply with new guidance from the Ministry of Finance. This change involves treating frequent buy-sell standard warehouse receipt contracts, where the company does not intend to extract the physical goods, as financial instruments rather than sales. Profits or losses from such transactions will be recorded as investment income, and unsold standard warehouse receipts held at period-end will be classified as other current assets.
The company's board of directors approved the policy change on October 22, 2025. This retrospective adjustment will not impact the company's asset-liability statement as of December 31, 2024, nor will it affect total profit or net profit for the period of January to June 2024. However, it will reclassify certain items within the income statement for January to June 2024.
Specifically, the adjustment will decrease operating revenue by 190,937.44 yuan and operating costs by 190,105.19 yuan, while increasing investment income by 832.24 yuan. Operating revenue for this period will be adjusted from 3,061,780.92 yuan to 2,870,843.49 yuan, operating costs from 2,888,795.56 yuan to 2,698,690.37 yuan, and investment income from 4,988.68 yuan to 5,820.92 yuan. The company states that this change will not materially affect its financial position, operating results, or cash flow.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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