The General Office of the Ministry of Finance ("MOF") has recently issued the Circular on Initiating the Submission of Quarterly Flash Reports on Economic Benefits of Some Central Cultural Enterprises in 2019 (the "Circular").

The Circular calls for attaching high importance to work on quarterly reports, strengthening the management of quarterly reports and making in-depth analysis of quarterly reports. Entities required to submit the quarterly reports are some centrally-administered cultural enterprises and their subsidiaries at different levels, and the submission of quarterly reports covers entities at all levels. The Circular expressly states that, reports to be submitted include quarterly statements and analysis reports. The former includes a cover of the statements, a statement presenting key indicators of economic benefits, a statement revealing key indicators of assets and liabilities, and a statement manifesting indicators of production and business operations. A parent company and its subsidiaries at different levels shall prepare and submit quarterly reports respectively, and the parent company is also required to prepare the consolidated quarterly reports. The latter mainly includes the basic conditions, economic operation, existing problems and the strategy for work in the next step. Moreover, the Circular requires that, quarterly reports shall be submitted to the competent authorities within five working days after the end of each quarter, and the competent authorities will review and gather together the quarterly reports and then forward them to the Culture Department of the MOF by the 10th day of the month following the end of that quarter.

(Source: MOF)