Securities code: 002785 securities abbreviation: Xiamen Wanli Stone Stock Co.Ltd(002785) Announcement No.: 2022-012 Xiamen Wanli Stone Stock Co.Ltd(002785)
About the provision for credit impairment in 2021
And asset impairment provision
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Xiamen Wanli Stone Stock Co.Ltd(002785) (hereinafter referred to as "the company") convened the 26th meeting of the Fourth Board of directors of the company on February 11, 2022, deliberated and adopted the proposal on the company's provision for credit impairment and asset impairment in 2021. According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the specific situation is announced as follows:
1、 Overview of provision for impairment this time
1. Reasons for withdrawing impairment provision this time
In accordance with the requirements of the accounting standards for business enterprises and the stock listing rules of Shenzhen Stock Exchange, in order to truly and accurately reflect the financial status, asset value and operating results of the company as of December 31, 2021, the company has conducted a comprehensive inspection and impairment test on all kinds of assets of the company and its subsidiaries, Considering that there are certain signs of impairment of some assets, based on the principle of prudence, the corresponding impairment reserves are accrued for relevant assets within the scope of the company's consolidated statements as of December 31, 2021.
2. The asset scope, total amount and reporting period of the current provision for impairment
After the company and its subsidiaries conduct a comprehensive inventory of assets with possible signs of impairment at the end of 2021, including accounts receivable, notes receivable, contract assets, other receivables, inventory and intangible assets, and conduct credit impairment and asset impairment test, it is proposed to withdraw various credit impairment reserves and asset impairment reserves of RMB 32.6771 million in 2021, Details are as follows:
Asset Name: proportion of the provision for impairment from the beginning of the year to the end of the year in the audited net profit attributable to the shareholders of the provision amount (10000 yuan) in 2020
Accounts receivable, notes receivable and contract assets 2562.89 211.96%
Other receivables 19.66%
Inventory 622.32 51.47%
Intangible assets 62.83 5.20%
Total 3267.71 270.25%
Note: the amount of provision for credit impairment and asset impairment this time is the preliminary accounting data of the company's financial department and has not been audited by an accounting firm. The specific impairment items and amount shall be subject to the audited financial report in 2021.
The provision for credit impairment and asset impairment is included in the financial report of 2021.
3. Approval procedures for the provision for credit impairment and asset impairment this time
The provision for credit impairment and asset impairment has been deliberated and approved at the 26th meeting of the 4th board of directors and the 21st Meeting of the 4th board of supervisors. The independent directors expressed independent opinions on the matter and agreed to withdraw the impairment provision this time.
The audit committee of the board of directors made a reasonable explanation on the impairment provision expected to be withdrawn. The provision for impairment does not need to be submitted to the general meeting of shareholders for deliberation and approval.
2、 Impact of the current provision for impairment on the company
The assets with provision for impairment this time are mainly accounts receivable, notes receivable, contract assets, other receivables, inventories and intangible assets. The amount of provision for impairment is RMB 32.6771 million, which is included in the accounting statements of 2021. The provision for impairment will reduce the company's net profit by 28.1654 million yuan and the owner's equity attributable to the parent company in the consolidated statements by 25.8828 million yuan.
3、 Specific description of the current provision for impairment
(I) provision for impairment of receivables and contract assets
1. Provision method for impairment of receivables and contract assets:
The company assesses the expected credit loss of financial instruments based on individual and combination. When assessing the expected credit loss, the company considers the reasonable and reliable information about past events, current situation and future economic situation prediction. When there is no sufficient evidence to evaluate the expected credit loss at a reasonable cost at the level of single instrument, the company refers to the experience of historical credit loss, combined with the current situation and the judgment of future economic conditions, divides the receivables and contract assets into dry combinations according to the characteristics of credit risk, and calculates the expected credit loss on the basis of the combination. The basis for determining the combination is as follows:
Combination name: basis for determining combination and accrual method
Expected credit the company will divide the remittances receivable within 90 days into credit risk customers according to the aging and the expected risk portfolio of the whole duration. The comparison table of credit loss rate of customer portfolio shall be withdrawn
With reference to the experience of historical credit loss, the nature of the combination of remittances receivable within 90 days is combined with the current situation and the expectation of future economic conditions to measure the bad debt provision
2. Reasons for provision for impairment of receivables and contract assets
The provision for impairment of accounts receivable, notes receivable and contract assets is made according to the accounting policy of the company for provision for impairment of accounts receivable. The main reasons are as follows:
Stone sales settlement is closely related to engineering projects. Affected by covid-19 epidemic outside China, macroeconomic environment, slow project progress and the overall capital status of customers, the payment settlement cycle is prolonged to varying degrees, resulting in the aging of accounts receivable for stone sales.
According to the accounting policies related to accounts receivable and impairment provision, the company has conducted necessary risk assessment on the accounts receivable at the end of the period and believes that the overall risk of accounts receivable is controllable, but the longer the aging of accounts receivable will objectively increase the risk of recovery of accounts receivable, and the amount of the above impairment provision withdrawn by the company according to the accounting policies is sufficient and reasonable; At the same time, the management of the company has paid close attention to the increase of accounts receivable and related risks, launched various necessary collection measures, and strengthened the collection and settlement of arrears.
(II) provision for inventory impairment
1. Withdrawal method of inventory falling price reserves of the company
After a comprehensive inventory of inventories at the end of the period, the inventory falling price reserves shall be withdrawn or adjusted according to the lower of the inventory cost and net realizable value. The net realizable value of finished products, goods in stock, materials for sale and other goods inventories directly for sale shall be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes in the normal process of production and operation; For the inventory of materials that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes; The net realizable value of inventories held for the execution of sales contracts or labor contracts is calculated based on the contract price. If the quantity of inventories held is more than the quantity ordered in the sales contract, the net realizable value of excess inventories is calculated based on the general sales price.
At the end of the period, the inventory falling price reserves are accrued according to a single inventory item; However, for the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; If the inventories are related to the product series produced and sold in the same region, have the same or similar end use or purpose, and are difficult to be measured separately from other items, the inventory falling price reserves shall be accrued jointly.
If the factors affecting the previous write down of inventory value have disappeared, the amount of write down shall be restored and reversed within the amount of inventory falling price reserve originally withdrawn, and the reversed amount shall be included in the current profit and loss.
2. Reasons for withdrawing falling price reserves for inventories
After a comprehensive inventory of inventories at the end of the period, the inventory falling price reserves shall be withdrawn or adjusted according to the lower of the inventory cost and net realizable value. The provision for inventory depreciation of finished products, goods in stock and materials to be processed shall be withdrawn according to the difference between the cost of a single inventory item and its net realizable value; For other inventories with large quantity and low unit price, the inventory falling price reserves shall be withdrawn by category.
(III) provision for impairment of intangible assets
1. Withdrawing method of the company's intangible assets falling price reserves
The company judges whether there is any sign of possible impairment of intangible assets on the balance sheet date. If there are signs of impairment of intangible assets, the recoverable amount shall be estimated on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs.
The estimation of the recoverable amount of an asset is determined according to the higher one between the net amount of its fair value minus the disposal expenses and the present value of the expected future cash flow of the asset.
If the measurement result of recoverable amount shows that the recoverable amount of intangible assets is lower than its book value, the book value of intangible assets shall be written down to the recoverable amount, and the written down amount shall be recognized as asset impairment loss and included in the current profit and loss, and the corresponding asset impairment provision shall be withdrawn at the same time. Once the asset impairment loss is recognized, it shall not be reversed in subsequent accounting periods.
2. Reasons for withdrawing depreciation reserves for intangible assets
For the mining rights whose mining warrants are not renewed before the balance sheet date, based on the principle of prudence, the provision for asset impairment shall be withdrawn in full according to their net book value.
4、 Notes of the audit committee of the board of directors on the provision for credit impairment and asset impairment
The audit committee of the board of Directors believes that the provision for credit impairment and asset impairment follows and complies with the accounting standards for business enterprises, the provisions of the company's relevant accounting policies and the actual situation of the company's assets. The provision for impairment is based on the principle of prudence and fairly reflects the company's financial status, asset value and operating results as of December 31, 2021.
5、 Independent opinions of independent directors on the provision for credit impairment and asset impairment
The independent directors believe that the provision for credit impairment and asset impairment this time adopts sound accounting principles, the basis is sufficient and reasonable, the decision-making procedures are legal and compliant, comply with the accounting standards for business enterprises and relevant rules and regulations, and can objectively and fairly reflect the financial status, asset value and operating results of the company as of December 31, 2021; Moreover, the company's provision for credit impairment and asset impairment this time is in line with the actual situation of the company, and there is no damage to the interests of the company and all shareholders, especially minority shareholders. We agree to withdraw the provision for credit impairment and asset impairment this time.
6、 Notes of the board of directors on the provision for credit impairment and asset impairment
The board of Directors believes that the provision for credit impairment and the provision for asset impairment comply with and comply with the accounting standards for business enterprises
The principle of prudence is fully based and fairly reflects the company's financial status, asset value and operating results as of December 31, 2021, making the company's accounting information about asset value more authentic, reliable and reasonable.
7、 Notes of the board of supervisors on the provision for credit impairment and asset impairment
After deliberation, the board of supervisors considered that the company's provision for credit impairment and asset impairment in accordance with the accounting standards for business enterprises and relevant regulations is in line with the actual situation of the company and can more fairly reflect the asset status of the company. The board of directors agreed to withdraw the provision for credit impairment and asset impairment in accordance with the decision-making procedures of the matter.
8、 Documents for future reference
1. The resolution of the board of directors signed by the attending directors and stamped with the seal of the board of directors;
2. Resolutions of the board of supervisors signed by the attending supervisors and stamped with the seal of the board of supervisors;
3. Independent opinions of independent directors on matters related to the 26th meeting of the Fourth Board of directors.
It is hereby announced.
Xiamen Wanli Stone Stock Co.Ltd(002785) board of directors February 14, 2022
