
Core Points - The financial management system of Zhejiang Century Huatong Group Co., Ltd. aims to standardize financial behavior, enhance financial management and internal control, prevent operational risks, improve economic efficiency, and protect shareholder rights [1] - The financial management objectives include maximizing enterprise value and shareholder interests [1] - The company has established a financial management center responsible for accounting, financial analysis, and providing financial support for operations [1][2] Financial Management Structure and Responsibilities - The company has set up a financial accounting management institution and appointed a financial director responsible for financial management [1][2] - The financial management center is tasked with managing and guiding the financial departments of subsidiaries, with the authority to recommend financial personnel [1][2] - Financial personnel must adhere to legal and regulatory requirements and report any violations of financial regulations [1][2] Major Accounting Policies - The company follows the accounting standards issued by the Ministry of Finance of the People's Republic of China [1][3] - The accounting period is from January 1 to December 31 each year, with the Chinese Yuan as the functional currency [1][3] - The company uses the accrual basis for accounting and recognizes foreign currency transactions at the spot exchange rate on the transaction date [1][3] Financial Instruments - Financial assets are classified into three categories based on their management model and cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss [2][3] - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value with changes recognized in other comprehensive income [5][6] Inventory and Long-term Investments - Inventory is measured at the lower of cost and net realizable value, with specific methods for different types of inventory [8][9] - Long-term equity investments are accounted for using the cost method or the equity method, depending on the level of control or influence over the investee [9][10] Asset Management - The company capitalizes borrowing costs when certain conditions are met, including the occurrence of asset expenditures and borrowing costs [13] - Intangible assets are measured at cost, with specific guidelines for amortization and impairment [14][15] Revenue Recognition and Government Grants - Revenue is recognized when control of goods is transferred to customers, with specific criteria for different types of transactions [19] - Government grants are recognized as deferred income and amortized over the useful life of the related assets [19] Leasing and Segment Reporting - Lease liabilities are recognized at the present value of future lease payments, with specific accounting treatments for different types of leases [20] - The company determines reportable segments based on operational divisions that generate revenue and incur expenses [21]