Zhende Medical’s announcement on changes in the company’s accounting policies
Securities code: 603301 Securities abbreviation: Zhende Medical Announcement number: 2026-022
Zhende Medical Products Co., Ltd.
Announcement on changes in the company’s accounting policies
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content reminder:
This change in accounting policies is the result of Zhende Medical Products Co., Ltd. (hereinafter referred to as the "Company")'s corresponding changes in the company's accounting policies due to the implementation of the "Interpretation of Accounting Standards for Business Enterprises No. 19" (Cai Kuai [2025] No. 32) issued by the Ministry of Finance on December 5, 2025 (hereinafter referred to as the "Interpretation of Standards No. 19"). This change will not have a significant impact on the company's financial status, operating results and cash flow. It does not involve retrospective adjustments from previous years, and will not harm the interests of the company and shareholders.
The company will implement this regulation from January 1, 2026.
1. Overview of this accounting policy change
On December 5, 2025, the Ministry of Finance issued the "Interpretation of Accounting Standards for Business Enterprises No. 19" (Financial Accounting [2025] No. 32). The company will make corresponding changes to the original accounting policies and implement this regulation from January 1, 2026.
This accounting policy change has been reviewed and approved at the seventh meeting of the company’s fourth board of directors held on April 22, 2026.
2. Main contents of changes in accounting policies
Before this accounting policy change, the company implemented the "Accounting Standards for Business Enterprises—Basic Standards" issued by the Ministry of Finance and various specific accounting standards, application guidelines for Accounting Standards for Business Enterprises, Interpretation Announcements of Accounting Standards for Business Enterprises and other relevant regulations. After the change, the company will implement the relevant provisions of the "Interpretation of Standards No. 19" issued by the Ministry of Finance. Except for the above-mentioned policies, the company still implements other unchanged parts in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and various specific accounting standards, the Application Guidelines for Accounting Standards for Business Enterprises, the Interpretation Announcement of Accounting Standards for Business Enterprises and other relevant regulations promulgated by the Ministry of Finance. The main contents of this accounting policy change are as follows:
It stipulates "About the accounting treatment of compensating assets in business combinations not under common control", "About the accounting treatment of relevant capital reserves when disposing of subsidiaries originally acquired through business combinations under common control", "About the derecognition of financial liabilities settled using electronic payment systems", "About the assessment and related disclosure of the contractual cash flow characteristics of financial assets" and "About the disclosure of equity instruments designated as measured at fair value with changes included in other comprehensive income" and other related content.
3. The impact of this accounting policy change on the company
This change in accounting policy is a reasonable change made by the company in accordance with the relevant regulations and requirements issued by the Ministry of Finance. It is in line with relevant laws and regulations and the company's actual situation. The changed accounting policy can reflect the company's financial status and operating results more objectively and fairly. This change in accounting policy does not involve retrospective adjustments to the company's previous annual financial statements, will not have a significant impact on the company's financial status, operating results and cash flow, and will not harm the interests of the company and shareholders.
4. Review status of the Audit Committee
The company's audit committee believes that this accounting policy change is a reasonable change made by the company in accordance with relevant notices and regulations issued by the Ministry of Finance, and is in line with relevant regulations and the company's actual situation. Its decision-making procedures are in compliance with relevant laws and regulations and the "Articles of Association" and other provisions. The accounting policy after implementation can reflect the company's financial status and operating results more objectively and fairly, provide more reliable and accurate accounting information, and will not harm the interests of the company and shareholders. Announcement is hereby made.
Board of Directors of Zhende Medical Products Co., Ltd.
April 24, 2026