Securities code: 600753 securities abbreviation: Fujian Oriental Silver Star Investment Co.Ltd(600753) No.: 2022-011 Fujian Oriental Silver Star Investment Co.Ltd(600753)
Announcement on large amount provision for bad debts of other receivables
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.
Fujian Oriental Silver Star Investment Co.Ltd(600753) (hereinafter referred to as “the company”) held the second meeting of the eighth board of directors on January 28, 2022, deliberated and adopted the proposal on large amount provision for bad debts of other receivables, and agreed that the company should, in accordance with the accounting standards for business enterprises and relevant accounting policies, The bad debt provision for other receivables of crude oil business of Ningbo Xinggeng Supply Chain Management Co., Ltd. (hereinafter referred to as “Ningbo xinggeng”), a wholly-owned subsidiary of the company, needs to be submitted to the second extraordinary general meeting of shareholders of the company in 2022 for deliberation. The company’s provision for bad debts of other receivables is hereby announced as follows:
1、 Summary of bad debt provision for other receivables this time
On January 26, 2022, the company disclosed the announcement of Fujian Oriental Silver Star Investment Co.Ltd(600753) on major litigation and risk warning by wholly-owned subsidiaries (Announcement No.: 2022-006). Because Shanghai Nanying Petrochemical Co., Ltd. failed to actually fulfill the delivery obligation and refused to return the purchase price paid by Ningbo Xinggeng Supply Chain Management Co., Ltd. of 55.2408 million yuan, Ningbo xinggeng has filed a lawsuit with Shanghai Fengxian District People’s court and submitted an application for property preservation. As of the disclosure date of this announcement, the case has been accepted and has not yet been heard.
Although Ningbo xinggeng has filed a lawsuit with the people’s Court on the return of the above purchase money, there is significant uncertainty and impairment risk in the recovery of the amount involved in the lawsuit. According to the current litigation situation, the results of property preservation implemented by the court on the defendant, combined with the professional judgment of litigation lawyers, in order to truly and accurately reflect the company’s financial situation and operating results, the company plans to withdraw bad debt reserves for other receivables of raw oil business in accordance with the relevant requirements of accounting standards for business enterprises and the principle of prudence.
2、 Principle and amount of bad debt calculation this time
1. In order to accurately reflect the nature of the amount involved, the company has converted the prepayment brought a lawsuit into other receivables, evaluated the credit risk of other receivables with significantly different credit risk, and measured the loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
2. According to the above loss accrual principle, the company has conducted relevant impairment tests on prepayments, other accounts receivable and inventories, and communicated with the annual audit accountant to confirm that it plans to withdraw the bad debt provision of other receivables involved in litigation of the company in 2021, amounting to RMB 52.5113 million.
3、 Impact on the profit and loss of the company’s consolidated statements
The impairment loss of the above company, excluding the income tax factor, will correspondingly reduce the net profit attributable to the owners of the parent company in the consolidated statements of the company in 2021 by 52.5113 million yuan. The impairment amount withdrawn by the company this time has not been audited by an accounting firm, and the final data shall be subject to the company’s 2021 annual audit report.
4、 Notes of the board of directors on the company’s provision for bad debts
The Audit Committee believes that the company’s provision for bad debts of other receivables is based on the principle of prudence, complies with the relevant provisions of the accounting standards for business enterprises and the company’s financial management system, can objectively and fairly reflect the company’s financial status and operating results, and is conducive to providing investors with more authentic, reliable and accurate accounting information, There is no situation that damages the interests of the company and shareholders.
The board of Directors believes that according to the accounting standards for business enterprises and relevant accounting policies, the company’s provision for bad debts of other receivables this time conforms to the actual situation of the company and relevant accounting policies, can more fairly reflect the asset status of the company, help to provide more authentic and reliable accounting information, and there is no damage to the interests of the company and small and medium-sized investors, Relevant decision-making procedures are legal and compliant. Agree to withdraw the bad debt provision for other receivables this time. 5、 Independent opinions of independent directors on withdrawing bad debt reserves
The company’s large amount of bad debt provision for other receivables is based on the principle of prudence, in line with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company’s assets. After the provision for impairment is made, the company’s financial situation can be more fairly reflected, which is conducive to the standardized operation of the company. The provision for impairment this time complies with the provisions of the Listing Rules of Shanghai Stock Exchange and the articles of association, and there is no damage to the interests of the company and shareholders. It is agreed to withdraw the provision for bad debts of other receivables this time.
6、 Opinions of the board of supervisors on withdrawing bad debt reserves
According to the accounting standards for business enterprises and relevant accounting policies, the company’s provision for bad debts of other receivables this time conforms to the actual situation of the company and relevant accounting policies, can more fairly reflect the asset status of the company, help to provide more authentic and reliable accounting information, there is no damage to the interests of the company and small and medium-sized investors, and the relevant decision-making procedures are legal and compliant. Agree to withdraw the bad debt provision for other receivables this time.
It is hereby announced.
Fujian Oriental Silver Star Investment Co.Ltd(600753) board of directors January 29, 2002
