“Hospitality fees,” which have ignited considerable discussion in the past few years, have disappeared from the annual reports of many listed state-owned enterprises (SOEs). So far, of the 251 SOEs that have released their annual reports for 2013, only 156 (62% of the total) have released details on their “hospitality fees”. However, such data was released by 168 companies in 2012, hence 12 SOEs concealed this information in 2013.
Xinhua reports that, according to insiders, concealed “hospitality fees” might have been categorized as “other fees”. For example, the “hospitality fees” of 837 million yuan reported by China Railway Construction Corporation in 2012 (the highest “hospitality fees” reported on both the Shanghai and Shenzhen stock exchanges in 2012), dropped to zero in the company’s 2013 annual report. “Other fees”, on the other hand, increased to 322.6 million yuan from 224 million yuan in 2012, a 44% increase.
According to an individual in the accounting industry, media reporting on high “hospitality fees” is the reason why many companies now choose to conceal this data.
Links and sources
Xinhuanet.com: 部分国企招待费由数亿元归零 “其他”费用暴增