Ministry of Finance of the People’s Republic of China Announcement

No.47 , 2020

The European Union (EU) issued the European Commission Implementation Decision (2012/No. 194) in 2012, deciding that the Chinese Accounting Standards for Business Enterprises shall be considered as equivalent to the EU adopted International Financial Reporting Standards issued by the International Accounting Standards Board (hereinafter referred to as the IFRS). This Decision has come into force in EU member states and shall apply from 1 January 2012. China issued the Announcement of the Ministry of Finance of the People’s Republic of China [2012] No. 65 in the same year, confirming that the IFRS applied by listed companies in EU member states at the level of consolidated financial statements had been equivalent to the Chinese Accounting Standards for Business Enterprises since 1 January 2012. The UK, as a member state of the EU, was required to implement the above provisions on equivalence.

In accordance with the European Union Withdrawal Act and other laws, the Decision concerning the equivalence of Chinese Accounting Standards for Business Enterprises made by the European Commission before exit day forms part of UK law after the end of the Transition Period. The UK retains the equivalence decision between the Chinese Accounting Standards for Business Enterprises and the IFRS, and UK listed companies still adopt the IFRS at the level of consolidated financial statements.

Based on the principle of reciprocal, and in accordance with the Accounting Law of the People’s Republic of China and other relevant regulations, the related matters are confirmed as follows:

After the end of the Brexit Transition Period, the IFRS applied by UK listed companies at the level of consolidated financial statements shall be considered as equivalent to the Chinese Accounting Standards for Business Enterprises.

It is hereby announced.

Ministry of Finance of the People’s Republic of China

December 31, 2020