SMIC(SH:600810) Zheng Quan Zhi Xing·2025-07-31 16:37Company Overview - As of December 31, 2024, the registered capital of Henan Shennma Nylon Chemical Co., Ltd. is 4.3837 billion RMB, with the actual capital also at 4.3837 billion RMB [1] - The major shareholders include Shennma Industrial Co., Ltd. with 61.79%, Jinshi Manufacturing Transformation and Upgrade New Materials Fund (Limited Partnership) with 15.66%, and others [1] - The company is located in Pingdingshan, Henan Province, and its main business activities include the production and operation of hazardous chemicals, special equipment inspection and testing services, and various manufacturing and sales of chemical products [1] Financial Reporting Basis - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the true financial position and operating results as of December 31, 2024 [2][3] - The financial statements are based on the assumption of going concern [2] Accounting Policies - The company adopts the Chinese Accounting Standards and follows specific accounting policies for business combinations, including the treatment of mergers under common control and non-common control [2][4] - The accounting period is from January 1 to December 31 each year, with a business cycle of 12 months [2] Financial Instruments - Financial assets are classified into categories based on their business model and cash flow characteristics, including those measured at amortized cost and those measured at fair value [10][12] - The company recognizes expected credit losses for financial instruments based on historical data and future economic conditions [14] Inventory Management - Inventory is classified into various categories such as raw materials, work in progress, and finished goods, and is measured at the lower of cost and net realizable value [16] - The company uses a perpetual inventory system and applies a weighted average method for inventory valuation [16] Long-term Equity Investments - Long-term equity investments are accounted for using the cost method for subsidiaries and the equity method for joint ventures and associates [19][20] - The initial investment cost for long-term equity investments is determined based on the fair value of identifiable net assets at the acquisition date [18]