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Reasons for the State-owned Investment in Huaying Technology
The reason for this is the following:

1, Huaying in order to improve the morale and enthusiasm of shareholders.

Huaying has been losing money recently and has to increase investment.

Only by investing a certain amount of capital can we get a certain income.

State-owned assets refer to the sum of state-owned property and property rights, and are the objects owned by the state. Specifically, state-owned assets include property obtained and recognized by the state according to law or power, property formed by state capital and its income, property formed by state funding to administrative institutions, assets formed by tax reduction, exemption and tax refund for enterprises, and property formed by donations and international assistance.

Enterprises owned by the whole people are state-owned enterprises. Its assets, whether directly invested by the state or obtained by enterprises through production and business activities, are owned by the state. Specific definition methods are:

1. Departments and institutions that have the right to invest on behalf of the state invest in enterprises with intangible assets such as currency, physical objects, land use rights and intellectual property rights, and the state capital formed is defined as state-owned assets.

2. After-tax profits from the use of state-owned capital and borrowed funds by enterprises owned by the whole people, which are approved by the state and left to enterprises as part of increasing investment, and surplus reserve fund, public welfare fund and undistributed profits extracted from after-tax profits, are defined as state-owned assets.

3. The net assets accumulated by enterprises owned by the whole people are defined as state-owned assets if they are guaranteed by enterprises owned by the whole people and administrative institutions, or if they are founded entirely with domestic and foreign loans or loans from other units.

4. Assets formed by enterprises owned by the whole people accepting gifts are defined as state-owned assets.

5. Before the implementation of the General Principles of Enterprise Finance and the Accounting Standards for Business Enterprises, after the implementation of the "two provisions" by enterprises owned by the whole people, the owner's rights and interests increased correspondingly from employee welfare funds, employee incentive funds and collective welfare facilities purchased and built with public welfare funds are defined as state-owned assets.

6. Party, league and trade union organizations in enterprises owned by the whole people occupy the enterprise's property (excluding assets purchased and built by the balance of party dues, tour fees, membership fees and activity funds allocated by individual enterprises according to state regulations), which is defined as state-owned assets.