Securities code: 000933 securities abbreviation: Henan Shenhuo Coal&Power Co.Ltd(000933) Announcement No.: 2022-014 Henan Shenhuo Coal&Power Co.Ltd(000933)
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.
Henan Shenhuo Coal&Power Co.Ltd(000933) (hereinafter referred to as "the company" and " Henan Shenhuo Coal&Power Co.Ltd(000933) ") received the attention letter on Henan Shenhuo Coal&Power Co.Ltd(000933) (company Department attention letter [2022] No. 99) (hereinafter referred to as "the attention letter") issued by the management department of listed companies of Shenzhen Stock Exchange on January 29, 2022. The board of directors of the company attached great importance to it, Immediately organize relevant personnel to carefully study the questions raised in the letter of concern and verify the relevant situation. The replies to the questions raised in the letter of concern are as follows:
1、 The performance forecast shows that due to the lower than expected coal output of the mine and the continuous large investment in safety and environmental protection of the Ministry and its subsidiaries, 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 City 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.
reply:
(I) damoling coal mine of Xinmi Chaohua Coal Mine Co., Ltd
1. Company situation
Xinmi Chaohua Coal Mine Co., Ltd. was established on June 23, 2003 with a registered capital of 70 million yuan. Its controlling shareholder Zhengzhou Yuzhong Coal Industry Co., Ltd. holds 70% (the company holds 51% equity of Zhengzhou Yuzhong Coal Industry Co., Ltd.), and its business scope is: coal production and sales; Sales of refractory materials, coal mine machinery and equipment and chemical products (excluding hazardous chemicals). The construction of damoling coal mine (hereinafter referred to as "damoling coal mine") of Xinmi Chaohua Coal Mine Co., Ltd. started in March 2008. The mine field covers an area of 10.8 square kilometers, with geological reserves of 81.12 million tons and recoverable reserves of 35.051 million tons. It mainly mines 21 coal, mainly lean coal, followed by lean coal, which is mainly used as power coal and lean coal can be used as coking coal blending, The average thickness of the coal seam is 4.92m, which is not easy to spontaneous combustion, and the coal dust has the risk of explosion. It is a coal and gas outburst mine; The hydrogeological type of the mine is medium; The mine development mode is vertical shaft single level up and down the mountain development, and the ventilation mode is central parallel extraction ventilation, air inlet of main and auxiliary shafts and air return of air shaft.
As of December 31, 2021, the total assets of damoling coal mine in the consolidated statements of the company are 2689.7213 million yuan, the total liabilities are 1823.9034 million yuan, the total owner's equity is 865.8179 million yuan, and the asset liability ratio is 67.81%; In 2021, the company realized an operating income of 309726900 yuan, an operating cost of 226570500 yuan and an operating loss of 71.0542 million yuan (excluding the provision for asset impairment this time).
2. Reasons for withdrawing asset impairment provision and impairment test process
(1) Analysis on main factors of impairment
In 2019, damioling coal mine was in the capital construction period. Based on the principle of prudence, the company conducted impairment test on the mining right in accordance with the relevant provisions of the accounting standards for business enterprises; According to the test results of the income method, after considering the investment in mining construction and equipment, the present value of the future cash flow of the mining right is higher than its book value, that is, the future mine operation return is sufficient to cover the investment of long-term assets. The management judges that there is no need to make impairment provision for the long-term assets of damoling coal mine in 2019.
From March 6, 2020 to October 20, 2020, damioling coal mine was put into joint trial operation and officially entered the production stage at the end of October 2020. However, the production and operation status in the fourth quarter was lower than expected and there were signs of impairment; Based on the principle of prudence and in accordance with the relevant provisions of the accounting standards for business enterprises, the company conducted an impairment test on the operating long-term assets. According to the test results, the impairment provision of 312 million yuan was made for the operating long-term assets of damoling coal mine in 2020.
In 2021, the main reasons for the provision for impairment of long-term assets of damoling coal mine are as follows: first, in terms of policies, affected by relevant factors such as new safety policies and local environmental protection policies, Damoling coal mine has been shut down for many times (except for the reasons for the shutdown of unforeseen special events in 2021: the shutdown was affected by accidents in Xinmi area for 28 days, and the shutdown was affected by floods in Xinmi area for 39 days, the annual shutdown time was 51 days), and the output did not meet the expectation; In view of the current situation, it is expected that shutdown may still occur in the future; Due to the upgrading of the management and control of initiating explosive devices by the competent department, the explosives required for the underground development roadway of damoling coal mine failed to be supplied in time, affecting the development of the mine roadway, resulting in blocked replacement of the mining area and limited production. Second, in terms of production cost input, with the continuous improvement of national investment standards on safety, environmental protection and smart mines, the gross profit of damoling coal mine is relatively low due to its own coal types, and the gross profit margin is more sensitive to the change of ton coal cost (the comprehensive gross profit margin of damoling coal mine in 2021 is 26.64%; the average gross profit margin of other coal mine products of the company is 38.15%), Operating losses will further expand; The underground geological conditions are complex, there are many faults, the investment in roadway excavation increases, the cost of grouting settlement reduction increases, and the mining cost is greater than expected. Third, in terms of product structure, the geological occurrence of the mining face is unstable, and the screening and waste discharge can not effectively improve the quality of raw coal, resulting in large fluctuations in coal quality; Lean coal is mainly used as power coal with low price; Lean coal can be used as coking coal blending. However, due to the low binding index of lean coal in damoling coal mine, which affects the comprehensive selling price, there are signs of impairment in the operating long-term asset group portfolio of damoling coal mine.
(2) Main assumptions, parameters, basis and impairment measurement process
Serial number calculation parameters December 31, 2019 December 31, 2020 December 31, 2021 remarks
1. The impairment test objects of mining right operating long-term asset group portfolio and operating long-term asset group portfolio are different
2. Impairment test method income method income method
3. Asset operation conditions capital construction period capital construction period commissioning construction stage is different
Joint commissioning (under production)
Accounting standards for Business Enterprises No. 8 - accounting standards for Business Enterprises No. 8
4. The impairment test is based on No. 8 - asset impairment, asset impairment, financial statement - asset impairment, and the evaluation index for the purpose of financial report in the evaluation guide for the purpose of reporting the evaluation parameters of mining rights with different objects of financial impairment test
Determination guidance
5 impairment test assumptions going concern assumptions going concern assumptions going concern assumptions
The net book value in 2019 is the book value of mining rights (RMB 600 million) of 11.38, 29.23 and 25.22, and the value of long-term asset group in 2020 and 2021
7 recoverable amount 11.43 26.11 17.51 note 1
(100 million yuan)
8. Increase or decrease value: 0.11 -3.12 -7.71
(100 million yuan)
9. In the forecast period, the sales volume is 80.70 and the output decreases. Note 2
(10000 tons)
The sales unit price test base date is different, the price is 10 (yuan / ton) 617.96 623.89 610.00, the product structure is different, note 3
11 cost 275.90 350.50 368.00 safety input, material and labor (yuan / ton) cost increase, note 4
The after tax discount rate is used in the 2019 mining right evaluation test, 12. The discount rate is 8.10%, 11.56%, 10.81%, and the pre tax discount rate is used for the long-term asset group test in 2020 and 2021
The recoverable amount in the future is estimated as 2021.1 billion yuan by the cash flow method, and the recoverable amount in the future is estimated as 2021.1 billion yuan by the cash flow method; The impairment test object of damoling coal mine is the operating long-term asset group portfolio, and the working capital in the prediction period needs to be reset in the first year. According to the asset status of damoling coal mine, the net cash flow test is as follows: the annual net cash flow is positive, with an average annual average of about 160 million yuan, and the present value of discounted cash flow is still lower than the book value.
Note 2: in 2021, the predicted sales volume is 700000 tons / year, which is estimated based on the estimated output, production and operation plan and estimated shutdown days (without considering the impact of special events of floods and accidents in Xinmi area) and the recoverable reserves on the valuation base date
