Securities code: 601375 securities abbreviation: Central China Securities Co.Ltd(601375) Announcement No.: 2022-007
Central China Securities Co.Ltd(601375)
Announcement on the provision for asset impairment
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. 1、 Overview of provision for asset impairment
In accordance with the relevant provisions of the accounting standards for business enterprises and the accounting policies of Central China Securities Co.Ltd(601375) (hereinafter referred to as "the company"), in order to accurately and objectively reflect the financial position of the company as of December 31, 2021 and the operating results of the second half of 2021, the company and its subsidiaries have conducted a comprehensive inventory and impairment test of various financial assets, inventories and long-term assets, In the second half of 2021, the provision for credit impairment was 218463300 yuan, and the provision for impairment of other assets was 1480100 yuan, totaling 219943400 yuan. See the following table for details:
Unit: 10000 yuan currency: RMB
Accrued amount of the project in the second half of 2021
1、 Provision for credit impairment 21846.33
Including: financial assets purchased for resale 11476.27
Debt investment 6501.59
Receivables and other receivables 3186.53
Loan 1053.85
Financed funds 441.48
Entrusted loan -785.34
Other debt investment -28.05
2、 Provision for impairment of other assets 148.01
Including: inventory 121.13
Long term option investment 26.88
Total 21994.34
Note: the above is the preliminary accounting data of the company. Without audit, the final amount confirmed by the annual audit of the accounting firm shall prevail.
2、 Impact of the provision for asset impairment on the company
The provision for asset impairment in the consolidated statements of the company in the second half of 2021 totaled 219943400 yuan, reducing the total profit in the second half of 2021 by 219943400 yuan.
3、 Specific description of the provision for asset impairment
1. The provision for impairment of financial assets bought for resale is mainly for the company to withdraw the provision for credit impairment of stock pledge business by comprehensively considering the debtor's credit status, repayment ability, value of guaranteed assets and other factors.
2. The provision for impairment of creditor's rights investment mainly refers to the provision for credit impairment of creditor's rights investment made by subsidiaries by taking into account the debtor's credit status, repayment ability, value of guaranteed assets and other factors and adopting the default probability / default loss rate method or single test.
3. The bad debt provision of receivables and other receivables is mainly the provision for credit impairment of receivables and other receivables made by the company according to the expected credit loss model.
4. The provision for loan impairment mainly refers to the provision for credit impairment made by subsidiaries for loans according to the latest status of loans, public or available information about borrowers, the value of collateral, the latest financial status of borrowers and guarantors and other factors.
5. The provision for impairment of financed funds is mainly for the company to withdraw the provision for credit impairment of financed funds by comprehensively considering the debtor's credit status, repayment ability, value of guaranteed assets and other credit enhancement measures and adopting the default probability / default loss rate method or single test.
6. The provision for impairment of entrusted loans mainly refers to the reversal of the provision for credit impairment of entrusted loans by subsidiaries according to the latest situation of the recovery of mortgages and pledges.
7. The provision for impairment of other assets mainly refers to the provision for depreciation of inventories made by subsidiaries according to the difference between the net realizable value of assets and the book value.
It is hereby announced.
Central China Securities Co.Ltd(601375) board of directors February 18, 2022
