603333: Sunway Co.Ltd(603333) announcement on the proposed provision for asset impairment of holding subsidiaries

Securities code: 603333 securities abbreviation: Sunway Co.Ltd(603333) Announcement No.: pro 2022-014 Sunway Co.Ltd(603333)

Announcement on the proposed provision for asset impairment of holding subsidiaries

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.

Sunway Co.Ltd(603333) (hereinafter referred to as “the company”), in accordance with the relevant provisions of the accounting standards for business enterprises and accounting policies and based on the principle of prudence, has conducted a value reduction test on the assets with signs of impairment of the holding subsidiary Sichuan Shangwei Aike Cable Co., Ltd. (hereinafter referred to as “Shangwei Aike”), and plans to withdraw the asset impairment provision according to the impairment test results. The details are as follows:

1、 Basic information of the current provision for asset impairment

1. Reasons for withdrawing asset impairment provision this time

In recent years, significant changes have taken place in the competition pattern of the fire-proof cable market where Shangwei Ike’s main products are located, which is mainly reflected in the increase of enterprises participating in the market competition and the serious homogenization of products. In response to the above changes in the market competition pattern, sunway Ike has continuously adjusted and improved its products to improve its market competitiveness. However, due to the serious homogenization of products and the intensification of market competition, the development progress of product market is lower than expected, and the operation and financial situation are seriously deteriorated. In order to truly, accurately and objectively reflect the company’s financial situation, asset value and operating results, based on the principle of prudence, the company plans to conduct a comprehensive impairment test on all kinds of assets of Sunway Ike in accordance with the accounting standards for business enterprises and relevant provisions of accounting policies, and withdraw corresponding asset impairment reserves.

2. Asset scope and estimated impairment amount of the current provision for asset impairment

On the premise of the open market, combined with the actual situation of Shangwei Aike and comprehensively considering various influencing factors, the impairment test of Shangwei Aike production line and related assets is carried out by using the method of fair value minus disposal expenses, and the recoverable amount is evaluated.

The appraisal scope covers the market value of Shangwei Aike production line and related assets, including structures, machinery and equipment, electronic equipment and other auxiliary equipment and facilities closely related to the production line. According to the preliminary impairment test results, the net book value of assets is about 20.3366 million yuan, the assessed market value is about 5.212 million yuan, and the estimated impairment amount is about 15.1246 million yuan.

2、 Impact of the current provision for asset impairment on Listed Companies

The proposed asset impairment is about 15.1246 million yuan. The provision for impairment is planned to be fully included in the company’s operating performance in 2021. Calculated according to the company’s 51% shareholding ratio in the subsidiary, the net profit attributable to the shareholders of the parent company in the consolidated statements of the company in 2021 will be reduced by 7.71 million yuan and the shareholder’s equity attributable to the parent company will be reduced by 7.71 million yuan.

The financial data of the provision for asset impairment has not been audited by an accounting firm, and the specific data shall be subject to the audited 2021 annual report disclosed by the company.

3、 Relevant approval procedures

The provision for asset impairment needs to be reviewed by the board of directors and the board of supervisors of the company.

It is hereby announced.

Board of directors January 29, 2002

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