Securities code: 601068 securities abbreviation: China Aluminum International Engineering Corporation Limited(601068) Announcement No.: pro 2022-007 China Aluminum International Engineering Corporation Limited(601068)
Reply announcement on the supervision letter of Shanghai Stock Exchange on the information disclosure of the company’s third quarter report in 2021 and related matters
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
The company accrues bad debt reserves for receivables arising from various businesses in accordance with the company’s accounting policies. For matters with major risks, the company will calculate the possible bad debt losses item by item and withdraw the corresponding bad debt reserves according to the changes in the customer’s solvency and the progress of relevant matters.
After combing, the company’s subsidiary China Aluminum International Engineering Corporation Limited(601068) Engineering Equipment Co., Ltd. (hereinafter referred to as the equipment company) has some risks of difficult recovery of funds and difficult realization of inventories. Based on the principle of prudence, the impairment provision is fully accrued for the existing risk exposure.
China Aluminum International Engineering Corporation Limited(601068) (hereinafter referred to as the company) received the working letter on the supervision of information disclosure of the third quarter report of China Aluminum International Engineering Corporation Limited(601068) 2021 and related matters of Shanghai Stock Exchange on December 13, 2021 (shgh [2021] No. 2982, hereinafter referred to as the working letter). The company attaches great importance to the work letter and actively organizes relevant parties to implement the issues involved in the work letter one by one.
The replies to the relevant questions in the working letter are as follows:
1. The third quarterly report shows that the closing balance of the company’s accounts receivable is 15.068 billion yuan and the closing balance of contract assets is 9.146 billion yuan, accounting for 42% of the total assets. At the same time, there are many litigation and arbitration matters involving receivables in the company’s daily operation. The company is requested to make supplementary disclosure: (1) list the top ten accounts receivable at the end of the reporting period by business, including the name of the debtor, causes, balance, aging and bad debt provision, and explain whether the relevant debtor has an association relationship with the company, other capital transactions or business history;
reply:
The company accrues bad debt reserves for receivables arising from various businesses in accordance with the company’s accounting policies. For matters with major risks, the company will calculate the possible bad debt losses item by item and withdraw the corresponding bad debt reserves according to the changes in the customer’s solvency and the progress of relevant matters. Specific accounting policies are as follows:
1. Accounting policies of the company for withdrawing bad debt reserves
On the balance sheet date, for receivables with significant single amount (the standard for significant single amount is 5 million yuan) and some receivables with insignificant single amount, if the expected credit loss can be evaluated without paying unnecessary additional costs or efforts, the company will carry out impairment accounting treatment separately and recognize bad debt reserves (hereinafter referred to as individual recognition method). For the remaining accounts receivable, except for the accounts receivable from enterprises within the consolidation scope, the bad debt provision is not withdrawn. Combined with past experience, current situation and future forecast, the expected credit loss is estimated and the bad debt provision is withdrawn according to the corresponding proportion based on aging analysis. The specific proportion is as follows:
Accrual proportion of aging receivables (%)
0.50 within 1 year (including 1 year)
1 to 2 years 10.00
2 to 3 years 20.00
3 to 4 years 30.00
4 to 5 years 50.00
More than 5 years 100.00
For contract assets with significant single amount (the standard for significant single amount is 5 million yuan) and some contract assets with insignificant single amount, if the expected credit loss can be evaluated without paying unnecessary additional costs or efforts, impairment accounting treatment shall be carried out separately and bad debt reserves shall be recognized (hereinafter referred to as individual recognition method). The remaining contract assets are divided into two combinations in combination with past experience, current situation and future forecast. The following methods are used to estimate the expected credit loss and withdraw bad debt reserves:
① Combination 1: contract assets not delivered to customers for use
For this kind of contract assets, the company shall withdraw the bad debt reserves of contract assets at 0.5% of the balance. ② Portfolio 2: contract assets delivered to customers for use
The provision for bad debts of such contract assets is withdrawn based on the aging analysis. The aging is calculated from the date of delivery, and the withdrawal proportion is as follows:
Accrual proportion of aging receivables (%)
0.50 within 1 year (including 1 year)
1 to 2 years 10.00
2 to 3 years 20.00
3 to 4 years 30.00
4 to 5 years 50.00
More than 5 years 100.00
2. The top ten accounts receivable of each business segment at the end of the reporting period are as follows:
① Survey and design business
Unit: 10000 yuan
Customer name relationship and
Notes on whether the reasons for the formation of aging bad debt reserves of other transaction accounts receivable are involved in litigation
condition
The related party within 1 year and the company undertakes the survey and design business. The customer is a related party within Chinalco group, and the capital is in good condition. It is expected that the customer will have other funds 3085.71. 126.59 accounts receivable in 1-2 years will be paid according to the contract. If it fails to meet the contract; The company has made full provision for impairment in accordance with accounting policies, and the terms of collection of business transactions.
It is estimated that there is no large impairment risk.
Non related parties within 1 year, 5 companies undertake subway engineering survey business, the customer’s capital is in good condition, and the payment is expected to be made in accordance with the contract; The company has no other funds for customers for more than 2360.24 years. 14.08. If the receivables are not met according to the contract, whether the impairment reserves are fully accrued according to the accounting policies. It is expected that there will be no large impairment and collection conditions of business transactions in the future. Risk.
Non related party companies are in good financial condition to undertake high-speed railway location survey, geological drilling and other customers, and are expected to pay in accordance with the contract; The company has provided 2193.47 yuan of other funds to customers and 10.97 yuan of business within 1 year. Whether the provision for impairment of this receivable is fully accrued according to the contract and accounting policies. It is expected that there will be no large impairment in the follow-up and business transactions will not meet the collection conditions. Risk.
The non related party company undertakes the design business, the funds receivable from the customer are in good condition, and the payment is expected to be made in accordance with the contract; The company has no other funds for customer 4 within 1785.13 years. If it fails to meet the receipt according to the contract, whether the impairment provision is made in full according to the accounting policy. It is expected that there will be no large impairment and business transactions in the future. Risk.
Non related parties have undertaken design services for 3-4 years and 4-5 companies, and the company has won the lawsuit; At present, the customer has entered the stage of bankruptcy and reorganization. The company has made part of the contract payment of 1378.47 in 1520.57 and 5 years according to the other businesses of the customer. Due to the tight funds of the customer, the impairment provision is made according to the reorganization plan. It is estimated that there is no wind transaction with large impairment in the follow-up, and the balance payment was not paid in the previous sheet. At present, the customer has been insured.
Enter the stage of bankruptcy reorganization.
The customer’s capital of the non related party company undertaking the aluminum alloy project design industry is in good condition. According to the communication between the company and the customer, the other party has no other capital of 1500.00 yuan in customer six years. The project is restarted due to the adjustment of the policy, The remaining payment shall be paid after the project is restarted. According to the suspension of items affected by the company’s meeting and business transaction control, the provision for impairment has been made in full according to the customer’s suspension policy, and it is expected that there will be no large impairment risk payment in the future. Insurance.
The customer of the non related party company undertaking the urban village reconstruction and renewal project is in good financial condition and is expected to pay in accordance with the contract. According to the corporate customer’s seven no other funds 1442.90 and 7.21 design business within 1 year, the impairment provision for this receivable has been fully accrued in accordance with the accounting policies of the company, It is estimated that there is no large impairment in the follow-up and the collection conditions have not been met as agreed in the business transaction contract. Risk.
The customer’s capital of the highway landslide treatment project undertaken by the non related party company is in good condition and is expected to pay in accordance with the contract. According to the business that the corporate customer has no other capital within 1396.67 and 6.98 within 1 year, the impairment provision for this receivable has been fully accrued in accordance with the accounting policies of the contract company, It is expected that there will be no large impairment and business transactions have not yet met the collection conditions. Risk.
Non related parties within 1 year, undertaken by the company
