Changshan North Ming (000158): Received Part Of The Land Compensation 200 Million Yuan.

In June 4th, Changshan North Ming (000158.SZ) announced that the original land of the fifth branch plant was publicly sold in December 24, 2019, and the transferee was made by Beijing Zhonghai Real Estate Co., Ltd., and the transaction price was 2 billion 11 million yuan. The contract signed by the company and the land reserve center of the Shijiazhuang municipality, which stipulate:

"According to the relevant requirements on further improving the work related to the relocation of the polluting industrial enterprises in Shijiazhuang, the land compensation standard stipulated by the implementation opinions of the relocation and transformation of the polluting industrial enterprises in the main urban area of the city of Shanghai (Shi 2018 [15]) is granted to the land compensation, that is, 60% of the total amount of the land transfer is compensated for the enterprises. The compensation costs include compensation fees for land and ground construction, etc., and no further mention is made of the fund. In case of exceptional circumstances, the total amount of the fund exceeds 40% of the total price, and the excess part is deducted from the enterprise's compensation. In the enterprise's land compensation (60% of the total price of the land transfer), the land compensation fee has been deducted 201494700 yuan and interest (the amount determined by the financial department) is the same and other expenses. Compensation for land acquisition is used to support the relocation and transformation of enterprises.

In June 4, 2020, the company received 200 million yuan of land compensation paid by the land reserve center of Shijiazhuang. According to the relevant provisions of the acquisition and return contract of state-owned land acquisition right and the Enterprise Accounting Standard No. sixteenth - government subsidy, the policy capital will be included in the deferred income first, and will be included in the current profits and losses during the period of confirming the relevant costs or losses.

The above government subsidies, the company is expected to account for the current profit and loss in 2020, the amount of 200 million yuan, the final accounting treatment of the subsidy funds will be certified by certified public accountants after the annual audit results. The above subsidies will have a positive impact on the company's 2020 profit.