Lower tax rate prompts China Jinjiang to revise up 2018 profit by 23.9m yuan

Singapore

CHINESE waste-to-energy firm China Jinjiang Environment Holding Company on Friday said a 23.9 million yuan (S$4.8 million) difference between its audited and unaudited 2018 net profit was due to a subsidiary enjoying a retrospectively lower tax rate, after being certified as a "national high-tech enterprise".

Accordingly, audited full-year net profit was 565 million yuan for 2018, up from the 541.1 million yuan profit reported in its unaudited financial statements.

Earnings per share also came in higher at 41.81 fen, up from 40.04 fen previously.

China Jinjiang's subsidiary, Hangzhou Kesheng Energy Technology Co, has received the national high-tech enterprise certification for a period of three years from Jan 1, 2018 to Dec 31, 2020 by the Zhejiang authorities in China, the company said. That led to Hangzhou Kesheng enjoying a lower corporate income tax rate, which was retrospectively applied.

"While the group was only notified of the certification and the lower corporate income tax rate after the release of the unaudited financial statements, the relevant conditions for the certification and the lower corporate income tax rate were already satisfied prior to the release of the unaudited financial statements," the company said.

Shares in China Jinjiang closed flat at S$0.58 on Friday.