Changjiang securities adjusts accounting policy for warehouse receipts

Changjiang Securities announced a change in its accounting policy, effective January 1, 2025, to comply with new guidelines from the Ministry of Finance regarding standard warehouse receipt transactions. The update mandates that frequent buying and selling of standard warehouse receipts for arbitrage, without physical delivery, be treated as financial instruments under Accounting Standard No. 22. This change requires that differences between sales proceeds and the book value of sold receipts be recognized as investment income, and unsold receipts be reported as other current assets.

This accounting policy adjustment follows the "Standard Warehouse Receipt Implementation Q&A" issued by the Ministry of Finance in July 2025. The company will apply retrospective adjustments, though the change is not expected to significantly impact its revenue, net profit, or net assets for current and comparable periods.

The accounting policy change does not require approval from the company's board of directors or shareholders and is not anticipated to adversely affect the company or its shareholders.