Securities code: 003038 securities abbreviation: Anhui Xinbo Aluminum Co.Ltd(003038) Announcement No.: 2022-025 Anhui Xinbo Aluminum Co.Ltd(003038)
Announcement on the provision for credit and asset impairment in 2021
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.
According to the relevant provisions of Shenzhen Stock Exchange self regulatory guidelines for listed companies No. 1 – standardized operation of listed companies on the main board, Anhui Xinbo Aluminum Co.Ltd(003038) (hereinafter referred to as “the company”) truly and accurately reflects the company’s annual financial status, asset value and operating results in 2021 in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, The company and its subsidiaries conduct a comprehensive inventory and impairment test of various assets. Based on the principle of prudence, credit and asset impairment reserves are accrued for relevant assets that may have credit and asset impairment losses within the scope of the consolidated statements as of December 31, 2021. The specific matters are hereby announced as follows:
1、 Overview of provision for impairment this time
1. Reasons for withdrawing impairment provision this time
In accordance with the accounting standards for business enterprises, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and other relevant provisions, in order to truly and accurately reflect the company’s financial status, asset value and operating results, the company has conducted a comprehensive inspection and impairment test on various assets within the scope of the consolidated statements as of December 31, 2021. Based on the principle of prudence, The company accrues corresponding impairment reserves for assets that may suffer impairment losses.
2. The asset scope, total amount and the reporting period to be included in the current provision for impairment
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test of assets with possible signs of impairment as of December 31, 2021, the provision for impairment totaled 23753719.13 yuan, which was included in the reporting period from January 1, 2021 to December 31, 2021. The details are as follows:
Unit: RMB
Amount of provision for impairment of the project
1、 Credit impairment loss 23462153.94
Including: bad debt loss of notes receivable 23105380.30
Bad debt loss of accounts receivable 502887.44
Bad debt loss of other receivables -146113.80
2、 Asset impairment loss 291565.19
Including: inventory falling price loss 291565.19
Total 23753719.13
2、 Specific description of the current provision for impairment
(I) provision for credit impairment
The provision for credit impairment this time mainly includes bad debt loss of notes receivable, bad debt loss of accounts receivable and bad debt loss of other accounts receivable. On the balance sheet date, if the impairment is indicated according to the relevant accounting policies and accounting estimates of the company, the company shall withdraw the impairment provision according to the regulations.
The company refers to the historical credit loss experience, combines the current situation and the prediction of future economic conditions, and calculates the expected credit loss through the default risk exposure and the expected credit loss rate throughout the duration.
1. Bad debt reserves withdrawn, recovered or reversed for notes receivable
Unit: RMB
Category opening balance current period change amount closing balance withdrawal or reversal write off others
Bad debt of notes receivable
Preparation 224090.67 502887.44 – 726978.11
Including: commercial contractor
Cash draft 224090.67 502887.44 – 726978.11
Total 224090.67 502887.44-726978.11
2. Bad debt reserves withdrawn, recovered or reversed from accounts receivable
Unit: RMB
Category opening balance current period change amount closing balance withdrawal or reversal write off others
Bad debt of accounts receivable
Preparation 20070845.01 23105380.30 845651.00 44021876.31
3. Bad debt reserves withdrawn, recovered or reversed for other receivables
Unit: RMB
Category opening balance current period change amount closing balance withdrawal or reversal write off others
Other receivables bad
Account preparation 649171.27 -146113.80 503057.47
(II) provision for asset impairment
On the balance sheet date, after a comprehensive inventory of inventories, the company shall withdraw or adjust the inventory falling price reserves according to the lower of the cost and net realizable value of inventories.
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.
The provision for falling price of inventories is as follows:
Unit: RMB
The opening balance of the project is increased in the current period and decreased in the current period. The ending balance is withdrawn and other reversed or written off
Goods in stock 207276.32 184951.29-198942.92-193284.69
Self made half
Item 304845.52 106613.90-303675.25-107784.17
Total 512121.84 291565.19-502618.17-301068.86
3、 Explanation on the reasonableness of the provision for credit and asset impairment in 2021 by the audit committee of the board of directors
In accordance with the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and other relevant provisions, the company has provided detailed information on the provision for credit and asset impairment in 2021, and fully explained the relevant contents. After review, We believe that the provision for credit and asset impairment of the company this time complies with and complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision is sufficient and in line with the current situation of the company’s assets. The provision for credit and asset impairment is based on the principle of prudence, which fairly reflects the company’s financial position, asset value and operating results as of December 31, 2021, making the company’s accounting information more reasonable. Therefore, the company agrees to withdraw the provision for credit and asset impairment this time.
4、 Impact of the current provision for impairment on the company
The provision for credit and asset impairment of the company this time complies with the provisions of the accounting standards for business enterprises and relevant policies of the company, and truly and objectively reflects the actual situation of the company’s assets. The provision for asset impairment this time is 23753719.13 yuan, which correspondingly reduces the total annual profit of the company in 2021 by 23753719.13 yuan. The provision for asset impairment has been audited and confirmed by Rongcheng Certified Public Accountants (special general partnership).
The company’s provision for asset impairment in 2021 complies with the accounting standards for business enterprises and the company’s accounting policies. According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the provision for asset impairment does not need to be submitted to the general meeting of shareholders for deliberation. The provision for asset impairment this time does not involve related parties and related transactions.
5、 Documents for future reference
1. Resolution of the 15th meeting of the Anhui Xinbo Aluminum Co.Ltd(003038) second board of directors;
2. Resolution of Anhui Xinbo Aluminum Co.Ltd(003038) the 14th meeting of the second board of supervisors;
3. Independent director’s independent opinions on matters related to the 15th meeting of the second board of directors. It is hereby announced.
Anhui Xinbo Aluminum Co.Ltd(003038) board of directors
February 24, 2022
