Securities code: 002366 securities abbreviation: Taihai Manoir Nuclear Equipment Co.Ltd(002366) Announcement No.: 2022-006 Taihai Manoir Nuclear Equipment Co.Ltd(002366)
Announcement on the reply to the letter of concern of Shenzhen Stock Exchange
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.
Taihai Manoir Nuclear Equipment Co.Ltd(002366) (hereinafter referred to as “the company”) received the letter of concern on Taihai Manoir Nuclear Equipment Co.Ltd(002366) issued by the management department of listed companies of Shenzhen Stock Exchange on January 27, 2022 (company department concern letter [2022] No. 59), and now replies to the relevant questions as follows:
Question 1:
Please describe the measures (if any) your company has taken or plans to take to improve its ability to continue as a going concern.
reply:
The measures taken or proposed to be taken by the company to improve its sustainable operation capacity mainly include:
1. After the company’s main holding subsidiary Yantai Taihai Manuer Nuclear Power Equipment Co., Ltd. (hereinafter referred to as “Yantai Taihai Manoir Nuclear Equipment Co.Ltd(002366) “) was ruled bankrupt and reorganized, on December 23, 2020, the decision of Laishan District People’s Court of Yantai City, Shandong Province ((2020) Lu 0613 Po No. 3 one), “Decides to allow Yantai Taihai Manoir Nuclear Equipment Co.Ltd(002366) to manage property and business affairs under the supervision of Yantai Taihai Manoir Nuclear Equipment Co.Ltd(002366) administrator.”. Through independent operation, it is conducive to enhance the overall asset value of the bankruptcy reorganization subsidiary.
2. By reforming the management mode, the company makes the organizational structure more flat and efficient, ensures the effective implementation of the company’s development strategic plan, and improves the efficiency of asset turnover and use; Optimize the existing personnel structure, ensure the principle of maximizing labor efficiency, and allocate excellent human resources reasonably and efficiently.
3. Expand market orders and adopt various cooperation methods such as consortium to provide good conditions for the signing of orders. Strengthen cooperation with advantageous enterprises in relevant industries and pay attention to the development of medium and high-end civil casting and forging Market. Use the R & D achievements accumulated in the early stage of the company to expand the military industry market.
4. Increase the collection of accounts receivable and speed up the return of funds of the company. The bankruptcy administrator shall organize relevant departments of the company to collect; The company arranges special personnel to collect overdue accounts receivable from other customers; For customers who refuse to pay for a long time, the company has sent a lawyer’s letter to collect, and will take legal means to solve it, and strive to speed up the return of the company’s funds. In 2021, the company collected 390 million yuan of loan in total.
5. Strengthen effective communication with creditor banks, explore various ways such as debt to equity swap, and fundamentally resolve the problem of debt risk.
6. The company has taken a series of measures to ensure the payment of employees’ wages. At the same time, it has strengthened employees’ ideological work, conveyed the company’s future prospects and stabilized employees’ emotions. As of the reply date, the company’s wages have been paid continuously, and the staff team has remained stable, effectively ensuring the normal operation of production and operation.
The company will also actively explore the market, steadily promote the work related to the bankruptcy and reorganization of its subsidiaries, and completely eliminate the company’s debt risk by taking advantage of the opportunity of reorganization in accordance with the 14th five year plan and the development trend of new nuclear power policies and in combination with the actual situation of the company. Through the effective promotion of the above measures, the optimization of the company’s asset structure and the improvement of its operating conditions can be realized, the profitability of the company can be effectively enhanced and the sustainable operation ability of the company can be greatly improved.
Question 2:
In combination with the structure of asset impairment, explain the reasons for the decrease of new asset impairment provision compared with the same period of last year. Among them, focus on the adequacy and rationality of the provision for impairment of accounts receivable and contract assets involving Taiwan Strait group and overseas projects.
reply:
In accordance with the accounting standards for business enterprises and relevant accounting systems, and based on the principle of prudence, the company conducted impairment tests on fixed assets, contract assets, inventories, accounts receivable and other assets as of December 31, 2021, and judged that there were signs of possible impairment. According to the test, the company’s provision for impairment of fixed assets, contract assets, inventories and accounts receivable in 2021 totaled 484317800 yuan, a decrease of 47716600 yuan compared with 961483800 yuan in the same period of last year. The details are as follows:
Unit: 10000 yuan
Difference between the amount withdrawn in 2020 and the amount withdrawn in 2021 (Unaudited) and the same period of last year
1. Provision for impairment of fixed assets 36114.33 3863.41 -32250.92
2. Provision for impairment of contract assets 47049.49 10781.66 – 36267.83
3. Provision for credit loss 8895.92 25407.06 16511.14
4. Provision for inventory falling price 4088.64 8379.65 4291.01
Total 96148.38 48431.78 -47716.60
1、 Provision for impairment of fixed assets
1. Impairment
At the end of 2021, the company conducted an overall preliminary impairment test on fixed assets and projects under construction. The test results show that there is no impairment risk of land, houses, structures and other assets; Some machinery and equipment, auxiliary equipment and electronic products are impaired. The company accrues individual impairment losses for machinery and equipment, auxiliary equipment and electronic equipment whose recoverable value is lower than the net book value according to the results of preliminary test and evaluation report, with a total of 38.6341 million yuan.
The company hired Zhongsheng appraisal and Consulting Co., Ltd. to evaluate the recoverable amount of the company’s fixed assets and projects under construction, and issued an evaluation report. The company will determine the impairment provision amount of the current year according to the asset evaluation results. 2. Reasons for the decrease over the same period of last year
As the impact of bankruptcy and reorganization of subsidiaries has been fully considered in the impairment test of fixed assets in 2020, the provision for impairment of fixed assets has been fully and reasonably withdrawn. In 2021, there was no significant change in the company’s business environment, and there was little change in fixed assets in the current period, so the new impairment provision decreased significantly compared with the same period last year.
2、 Provision for impairment of contract assets
1. Impairment
The company divides contract assets into single major single provision for impairment, quality assurance fund portfolio and unsettled project fund portfolio. For single major single provision items, the company judges that the risk of non performance of contracts recognized by the company according to the new income standard period method is low by analyzing the particularity of the company’s industry and the actual situation of early contract performance, However, the contract production time is adjusted. In combination with the signing time, delivery date, acquired project progress and other conditions of the contract, the recoverable amount of the contract assets is estimated with different realization probabilities, and the average annualized interest rate of the company’s actual capital cost is taken as the discount rate, so as to measure the expected cash flow of the contract assets and compare it with the cash flow receivable of the contract assets, So as to determine the impairment amount of contract assets; For the contract assets classified into the portfolio, the expected credit loss is judged according to the nature of the portfolio. The depreciation reserves of unsettled project funds are calculated according to the historical aging of the company’s accounts receivable, the migration rate and historical loss rate are calculated to calculate the expected credit loss, and the depreciation reserves of contract assets are withdrawn according to the actual aging of contract assets.
In 2021, the company made provision for impairment of contract assets totaling 107.8166 million yuan, a decrease of 36.26783 million yuan compared with the same period of the previous year.
(1) Yantai Taihai Group Co., Ltd. (hereinafter referred to as “Taihai group”) project contract assets
The total amount of the procurement contract for container equipment, forgings and special competitive projects signed between the company and Taiwan Strait group is 5822.96 million yuan. As of December 31, 2021, the balance of contract assets between the company and Taiwan Strait group is 1131.7474 million yuan.
The project has been reported to Shandong provincial government, and the construction of the project meets the requirements of China’s 14th five year plan. Considering the particularity of the company’s industry and the actual situation of contract performance of similar projects, although the contract production time is adjusted, the risk of project non performance is small. The company tests the contract assets with different realization probabilities based on the reasonable expectation of product production, combined with the signing time of the contract, delivery date, project progress obtained and the annualized average interest rate of the company’s financial institution loan this year, so as to determine the expected cash flow of the contract assets and compare it with the cash flow receivable of the contract assets, Through the calculation of the impairment of contract assets, the estimated loss rate of contract assets of Taihai group project in 2021 is 34.33%, and the accrued impairment loss is 389655500 yuan. In 2020, the company has accrued impairment loss of 33952600 yuan, so the company has accrued impairment loss of 50129400 yuan this year.
The audit work in 2021 has been fully carried out. The company will actively cooperate with the accounting firm to carry out necessary audit procedures to ensure that the impairment provision in the audit report in 2021 is sufficient and reasonable.
(2) Overseas project contract assets
Dongfang Gobi iron and Steel Co., Ltd., Deyang import and Export Co., Ltd. of Erzhong Group (hereinafter referred to as “Erzhong import and export company”) and Deyang Wanda heavy machinery equipment manufacturing Co., Ltd. (hereinafter referred to as “Deyang Wanda”) signed the general contract for equipment supply of 330000 T / A blast furnace ironmaking / converter steelmaking / continuous casting project, and designated Deyang Wanda as the equipment supplier of the project, The company provides relevant equipment supply services in accordance with the contract. As of December 31, 2021, the balance of contract assets of Deyang Wanda and Erzhong import and export company was RMB 16.638 million. The company made provision for impairment at the estimated loss rate of 50%. The accumulated impairment loss of the project was RMB 9.8319 million, and there was no new provision for impairment in this year.
The overseas Silk Road iron and Steel Industrial Park signed a subcontract for the supply of equipment for phase I of the converter steelmaking / continuous casting project with an annual output of 1 million tons with Tianjin Textile Group Import and Export Co., Ltd. (hereinafter referred to as “Tianfang group”) and Deyang Taihai nuclear energy equipment Co., Ltd. (hereinafter referred to as “Deyang Taihai”), and appointed Tianfang group as the general contractor of phase I project, As a phase I equipment supplier, Deyang Taihai provided relevant equipment supply services in accordance with the contract. As of December 31, 2021, the balance of contract assets between Deyang Taihai and Tianfang group was 30.5694 million yuan. The company made provision for impairment according to the estimated loss rate of 50%. The accumulated impairment loss of the project was 15.2847 million yuan, and there was no new provision for impairment in this year.
In 2021, the company’s subsidiaries Deyang Taihai and Deyang Wanda made a comprehensive judgment according to the changes of the international situation, the customer’s performance ability, the progress of the project and the market value of the undelivered contract assets, and considered that there was no new impairment risk of the project. Therefore, the company did not withdraw the impairment provision of the project in 2021. The audit work in 2021 has been fully carried out. The company will actively cooperate with the accounting firm to carry out necessary audit procedures to ensure that the impairment provision in the audit report in 2021 is sufficient and reasonable.
2. Reasons for the decrease over the same period of last year
The provision for impairment of contract assets has been fully and reasonably withdrawn due to factors such as conditions and contract progress. In 2021, there was no significant change in the business environment of the enterprise, and the above contract assets were mainly contract assets continued in the previous period, and there was no substantive change in the contract. The main reason was that the total contract assets of the company were not significantly different from that of last year, and the accrued amount of contract assets of Taihai group project was less this year, so the new impairment provision was significantly lower than that of the same period last year.
3、 Provision for credit impairment
1. Impairment
For the accounts receivable formed by the transactions regulated by the income standards and excluding major financing components, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration. The company divides the accounts receivable into accounts receivable withdrawn according to individual items and a combination with aging as similar risk characteristics, and the provision for bad debts of accounts receivable is withdrawn. For the combination of accounts receivable with aging as similar risk characteristics, the expected credit loss rate is determined according to the comprehensive historical loss rate and the forward-looking adjusted loss rate. For the individual withdrawing items, the estimated recoverable amount is calculated based on the analysis and judgment of the obtained objective evidence. As of December 31, 2021, the original value of the company’s accounts receivable was 1029122500 yuan, and the newly increased amount of bad debt provision was 254070600 yuan, an increase of 165.1114 million yuan over the same period of the previous year. The balance of bad debt provision was 51618500 yuan, and the withdrawal proportion was 50.16%.
(1) Accounts receivable of Taihai group
The total amount of the procurement contract for container equipment, forgings and special competitive projects signed by the company and Taihai group is 5822.96 million yuan. Due to the suspension of the execution of the contract and the bankruptcy and reorganization of Taihai group, the recovery of this amount mainly depends on the continuous execution of the contract and the time of execution. The company comprehensively considers the situation of the project and the collectability of accounts receivable, The company believes that there are certain risks in the accounts receivable, and the impairment test shall be conducted for the accounts receivable of the project according to individual items. By the end of 2021, the company’s accounts receivable to Taiwan Strait group was 124.0269 million yuan, with an estimated loss rate of 34.86%. The accumulated provision for bad debts was 43.2315 million yuan, and the new provision for impairment was 5.8565 million yuan this year.
The audit work in 2021 has been fully carried out. The company will actively cooperate with the accounting firm to carry out necessary audit procedures to ensure that the impairment provision in the audit report in 2021 is sufficient and reasonable.
(2) Accounts receivable from overseas projects
Overseas Dongfang Gobi iron and Steel Co., Ltd. signed the general contract for equipment supply of 330000 ton blast furnace ironmaking / converter steelmaking / continuous casting project with Erzhong import and export company and Deyang Wanda, and designated Deyang Wanda as the equipment supplier of the project. Due to the influence of the international situation, the recovery of accounts receivable is at a certain risk. Deyang Wanda comprehensively considered the project situation and the recoverability of accounts receivable, The impairment test shall be conducted for the accounts receivable of the project according to individual items. By the end of 2021, the accounts receivable of Deyang Wanda and Erzhong import and export company were 10,
