On January 26, Tiza Information Industry Corporation Inc(300209) and Sichuan Etrol Technologies Co.Ltd(300370) received the attention letters from Shenzhen Stock Exchange respectively. The inquired matters of the two companies involved goodwill impairment.
The performance forecast disclosed on Tiza Information Industry Corporation Inc(300209) 25 showed that affected by the changes in the policy environment of Amazon and other e-commerce platforms and the intensification of industry competition, the company’s operating performance fell sharply, the sales volume of relevant inventory was lower than expected, and the goodwill formed by the acquisition of Shenzhen youkeshu Technology Co., Ltd. (hereinafter referred to as “youkeshu”) showed signs of impairment, At the same time, provision for impairment of accounts receivable and inventories of Yuanjiang Information Technology Co., Ltd. The attention letter requires Tiza Information Industry Corporation Inc(300209) to supplement and disclose the detailed process of this goodwill impairment test, including key assumptions, main parameters, forecast indicators, etc., as well as whether there are significant changes, reasons and rationality compared with the impairment test in the 2020 annual report.
Sichuan Etrol Technologies Co.Ltd(300370) also disclosed the performance forecast for 2021 on the 25th, which mentioned that the company found signs of impairment in some asset groups and made provision for goodwill impairment at the end of the reporting period. The attention letter requires Sichuan Etrol Technologies Co.Ltd(300370) to explain the name of the M & a target involved in the goodwill, combined with the income, net profit and relevant change trend since the M & A, the changes of orders in hand, market demand and competition pattern, and the performance changes of Companies in the same industry, The detailed process of this goodwill impairment test (including but not limited to key assumptions, main parameters, prediction indicators, and changes compared with the impairment test in the previous annual report) explains the reason and rationality of the provision for goodwill impairment this time; Combined with the previous goodwill impairment test and the time point of goodwill impairment signs, explain whether the company’s early goodwill impairment provision is reasonable and sufficient.
The reporter noted that with the disclosure of performance forecast coming to an end, a number of listed companies reported that goodwill impairment dragged down performance, and received a regulatory letter from the exchange.
The announcement on 2021 annual performance forecast and notice of goodwill and asset impairment risk was disclosed on Nanfang Zhongjin Environment Co.Ltd(300145) 21. It is estimated that there will be a loss of 650 million yuan to 850 million yuan in 2021. One of the reasons for the change in performance is that during the reporting period, the company preliminarily evaluated and calculated the goodwill formed by the acquisition of Zhejiang Jintailai Environmental Protection Technology Co., Ltd. (hereinafter referred to as “Jintailai”) and Luoyang Water Conservancy Survey and Design Co., Ltd. (hereinafter referred to as “Luoyang water conservancy”) in combination with the judgment of industry development and enterprise operation, It is estimated that the total amount of goodwill impairment withdrawn in 2021 will be between 470 million yuan and 520 million yuan. In this regard, the Shenzhen stock exchange requires Nanfang Zhongjin Environment Co.Ltd(300145) to explain the overall operation of the industry in which Jintailai and Luoyang water conservancy are located, the performance over the years after the acquisition, the difference from the profit forecast, the provision for impairment of goodwill and other matters.
According to public information, Saturday Co.Ltd(002291) , Suzhou Kingswood Education Technology Co.Ltd(300192) , Red Phase Inc(300427) , Zjbc Information Technology Co.Ltd(000889) and other companies also received letters of concern due to goodwill impairment and other issues.
Investors are quite concerned about the risk of goodwill impairment of listed companies. The reporter saw on the investor interaction platform that some companies to be impaired were asked by investors. For example, the 2021 annual performance forecast disclosed on Guangdong Topstar Technology Co.Ltd(300607) 24 shows that the amount of goodwill impairment is expected to be 36 million yuan to 51 million yuan in the current period. Some investors then asked what items the goodwill impairment corresponds to. In addition, many companies that did not disclose the information of goodwill impairment but had a high proportion of goodwill in net assets were also asked about “whether there are signs of impairment of the assets acquired by the company”, “what is the formation or composition of goodwill” and “what measures are available to reduce goodwill”. According to the data of Hithink Royalflush Information Network Co.Ltd(300033) , by the end of the third quarter of 2021, there were 80 listed companies whose goodwill accounted for more than 50% of net assets.
