China Railway Construction asked reporters to stop reporting on 800 million yuan in entertainment expenses

China Railway Construction asked reporters to stop reporting on 800 million yuan in entertainment expenses. The "entertainment expenses" of 100 million yuan in listed companies of central enterprises have attracted attention from all parties, and were published...

The "entertainment expenses" of listed companies of state-owned enterprises often amount to 100 million yuan, which has attracted the attention of all parties. The annual report data of listed companies show that the "business entertainment expenses" of China Railway Construction and other companies are indeed over 100 million yuan. Among them, the "business entertainment expenses" of China Railway Construction's annual report amounted to 837 million yuan, ranking first among all listed companies.

According to the China Broadcasting Economic Voice's "Tianxia Company" report, Qi Xiaofei, chairman of the China Railway Construction Board of Supervisors and secretary of the Discipline Inspection Commission, does not think there is a problem with the huge entertainment expenses.

Yesterday, an accountant told this newspaper that business entertainment expenses in the accounting account refer to the entertainment expenses paid by the enterprise for the reasonable needs of production and operation. There is no precise definition of what is considered entertainment expenses. However, in operation, banquets, work meal expenses, souvenir gifts expenses, visit expenses and the resulting transportation expenses incurred by the business operations are all counted as entertainment expenses.

But conference fees, etc. are not included. In addition, travel expenses for the company’s employees are not included. According to China Railway Construction’s annual report, its travel expenses last year were as high as 808 million yuan.

The aforementioned accountant pointed out that from this point of view, it is appropriate for netizens to call entertainment expenses an expense for “eating, drinking, and giving gifts.”

Judging from the amount of A-share "business entertainment expenses", the construction industry is the industry with the highest entertainment expenses. Among the companies with A-share entertainment expenses exceeding 100 million yuan, China Railway Construction, China Communications Construction, China Hydropower, Shanghai Construction Engineering and other companies are at the top.

However, considering the scale factor, this proportion of entertainment expenses is not unusual in the construction industry.

In the construction industry, private enterprise Longyuan Construction's entertainment expenses were 16.89 million yuan, accounting for 0.12% of the company's operating income of nearly 14 billion yuan in 2012; while China Railway Construction's operating income last year was 484.3 billion yuan, and its entertainment expenses accounted for 0.17% of its operating income.

According to the 2012 annual report data, a total of 8 companies' business entertainment expenses exceeded 100 million yuan last year, and the top 8 totaled 2.7 billion yuan, the vast majority of which were state-owned enterprises. There are also more than 240 listed companies whose business entertainment expenses exceed 10 million yuan.

>China Railway Construction's A shares closed at 5.27 yuan yesterday, up 1.54%.

■ Voice

China Railway Construction: Will apply for disclosure of hospitality expenses

According to the China Broadcasting Economic Voice's "Tianxia Company" report, the personnel of the China Railway Construction Press Department asked reporters not to continue to follow up on the matter in an interview with the column yesterday afternoon, on the grounds that doing so would be too harmful.

The person said: "If you retaliate in this way, it will be too harmful. You know, it is not just our family's problem. Because of this matter, do you think it would be okay to slow down a little. The media has been badmouthing central enterprises. Many of our situations have you Maybe I don’t know much about it. Our construction companies are actually in a difficult situation, not just us.”

According to him, China Railway Construction will submit an application to the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission for the specific content of the 830 million yuan entertainment fee. If approved, China Railway Construction will disclose the specific composition of the 830 million yuan in entertainment expenses.