With regard to the attention letter on Henan Shenhuo Coal&Power Co.Ltd(000933) , the attention letter of the company Department [2022] No. 99 Henan Shenhuo Coal&Power Co.Ltd(000933) board of directors:
Recently, your company disclosed the performance forecast for 2021, which shows that the company is expected to realize the net profit attributable to the shareholders of the listed company (hereinafter referred to as "net profit") of 3.107 billion yuan and the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses of 3.139 billion yuan in 2021; In 2021, the company made a total provision for asset impairment and credit impairment loss of 3.443 billion yuan, and the net profit is expected to decrease by 2.678 billion yuan. Our department is concerned about this. Please explain the following matters:
1. The performance forecast shows that due to the lower than expected coal output and large continuous investment in safety and environmental protection of the subsidiary companies, the cost has increased significantly. The company has made an asset impairment provision of 1.364 billion yuan for the relevant assets of damoling coal mine of Xinmi Chaohua Coal Mine Co., Ltd., Hecheng coal mine of Xinmi Hengye Co., Ltd. and Longyuan coal mine of Yuzhou Shenhuo Longyuan Mining Co., Ltd, The net profit affected was 613 million yuan; Affected by factors such as the lower than expected power generation and supply volume and the sharp rise in power generation costs caused by the continuous and sharp rise in the price of thermal coal, the company's subsidiary Henan Shenhuo Power Generation Co., Ltd. made provision for asset impairment of 705 million yuan, affecting the net profit of 705 million yuan; Due to the major uncertainty in the introduction of recycled aluminum and other projects of Yongcheng aluminum plant of the company's headquarters and the lack of expected transport capacity of railway special line, the company has accrued 542 million yuan of asset impairment reserves for Yongcheng aluminum plant, railway special line and other related assets, affecting the net profit of 542 million yuan.
(1) Please explain the specific conditions of the above asset impairment, including but not limited to the object of provision, book value, asset status and operation, recoverable amount, the basis, main assumptions, parameters and rationality of the provision for impairment, and the specific process of impairment measurement.
(2) Please explain in detail the reasons for the provision for impairment of large assets, the time point and basis for the provision of impairment of the above assets in combination with the production and operation, asset status and capacity utilization of the above subsidiaries, and compare the changes of the main factors leading to asset impairment, impairment provision, reversal or write off of impairment in the last three years, Explain the rationality and sufficiency of the provision for asset impairment in this year, and whether there is insufficient provision in previous years.
2. The performance forecast shows that due to the bankruptcy and reorganization of Henan nonferrous Huiyuan Aluminum Co., Ltd. (hereinafter referred to as "Huiyuan aluminum") and the influence of national environmental protection policies and other factors, there is significant uncertainty. The company accrues credit impairment loss of 754 million yuan for its creditor's rights, affecting net profit of 754 million yuan. Please explain the progress of Huiyuan aluminum in implementing the bankruptcy reorganization plan, the reasons why some terms in the investment agreement signed with the intended investors cannot be implemented, the calculation process, basis and rationality of the expected repayment rate of creditor's rights, and whether there is insufficient provision in the early stage.
3. The performance forecast shows that the company has made provision for asset impairment of 78 million yuan for some idle equipment and materials, affecting the net profit of 64 million yuan. Please explain the main uses and reasons of the above idle equipment and materials, and explain the adequacy of the provision for impairment in combination with the idle time, asset status, subsequent disposal arrangements, impairment test process, etc.
4. Please explain whether the company has improper accounting adjustment in combination with the reply to the above questions.
5. Your company recently held a meeting of the board of directors to consider and pass the proposal on the company's business plan and infrastructure investment plan in 2022. It is estimated that the annual operating revenue of 2022 will be 33 billion yuan and the total operating profit of the main business will be 5 billion yuan. Please explain in detail the calculation process and basis of the above financial data, whether the prediction is prudent, reasonable and compliant, and fully remind the risk. 6. Ask the annual audit accountant to check the above matters and give clear opinions.
Please make a written statement on the above issues, submit the relevant explanatory materials to our department for disclosure before February 11, 2022, and send a copy to the dispatched office at the same time. At the same time, remind your company and all directors, supervisors and senior managers to strictly abide by the securities law, the company law and other laws and regulations, as well as the stock listing rules of the exchange, and perform the obligation of information disclosure truthfully, accurately, completely, timely and fairly.
We are writing to inform you that
Shenzhen Stock Exchange listed company management department 1 January 29, 2022
