The person in charge of the Accounting Department of the China Securities Regulatory Commission yesterday responded to reporters’ questions regarding the supervision of listed companies’ 2007 annual financial reports. He said that thanks to the growth of the main business, the performance disclosed in the 2007 annual reports of listed companies had greater Although the investment income has increased significantly, the proportion of investment income is also relatively large, accounting for 20% of the total profit for the year.

The person in charge said that 2007 was the first year for listed companies to implement the new accounting standards. Generally speaking, the vast majority of listed companies can strictly implement the provisions of the new accounting standards and tend to choose accounting policies and conduct operations prudently. According to accounting estimates, there has been no market concern about the abuse of fair value by listed companies, and a smooth transition has been achieved between the old and new accounting standards. However, there are also some specific problems during the implementation of the new standards, such as the use of unfair debt restructuring, shareholder donations and other methods to adjust profits by very few companies. In this regard, the China Securities Regulatory Commission is conducting further research to regulate, improve the system, and strengthen supervision through the institutional and regulatory levels.

According to preliminary statistics from the China Securities Regulatory Commission, the average earnings per share of 1,547 listed companies that disclosed annual reports as scheduled in 2007 was 0.42 yuan, an increase of 41.46% over the previous year; the average return on net assets was 14.71%, an increase of 41.46% over the previous year. It increased by 1.84 percentage points last year. The performance growth of listed companies is mainly due to their main business. However, investment income and non-operating income and expenses account for a relatively large proportion of total profits. In 2007, listed companies achieved cumulative net investment income of 281.78 billion yuan and net non-operating income and expenses of 47.491 billion yuan, accounting for 20.93% and 3.53% of total profits in 2007 respectively.

The person in charge said that the China Securities Regulatory Commission We have always attached great importance to the quality of financial information disclosure of listed companies. In the coming period, the China Securities Regulatory Commission will focus on inspecting the implementation of new accounting standards by listed companies. At the same time, it will continue to carry out on-site inspections by accounting firms with securities and futures business qualifications. Financial fraud and other behaviors discovered by listed companies will be dealt with seriously in accordance with the law.