Securities code: Qingdao Tgood Electric Co.Ltd(300001) securities abbreviation: Qingdao Tgood Electric Co.Ltd(300001) Announcement No.: 2021014 Qingdao Tgood Electric Co.Ltd(300001)
Announcement on the provision for 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.
Qingdao Tgood Electric Co.Ltd(300001) (hereinafter referred to as “the company” or ” Qingdao Tgood Electric Co.Ltd(300001) “) has accrued credit loss and asset impairment loss in accordance with the guidelines for self discipline supervision of listed companies on Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM, accounting standards for business enterprises and relevant accounting policies of the company. The specific situation is hereby announced as follows:
1、 Overview of the provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
The provision for asset impairment is made in accordance with the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies. The company and its subsidiaries conducted a comprehensive inventory of various inventories, contract assets, receivables, fixed assets, construction in progress, intangible assets, goodwill and other assets at the end of 2021, and fully evaluated and analyzed the net realizable value of various inventories, the possibility of recovery of contract assets and receivables, and the variability of fixed assets, construction in progress and intangible assets, It is considered that some of the above assets have certain signs of impairment, and the company needs to make provision for impairment of relevant assets that may have asset impairment losses.
2. Asset scope and total amount of the current provision for asset impairment
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test of assets with possible signs of impairment at the end of 2021 (including accounts receivable, inventory, contract assets, fixed assets, construction in progress and goodwill), the provision for impairment of various assets in 2021 totaled 21277192681 yuan, as shown in the following table:
Unit: Yuan
Project year 2021 to 2020
Bad debt provision 1808983664115666133178
Provision for impairment of contract assets 6466056901315331919
Inventory falling price reserves 715427761457064348
Provision for impairment of fixed assets 1332606415197943775
Provision for impairment of construction in progress 492716174209740629
Total 2127719268117846213849
2、 The recognition standard and withdrawal method of the provision for asset impairment this time
The provision for asset impairment withdrawn this time includes bad debt provision for accounts receivable, provision for inventory depreciation, provision for impairment of contract assets, provision for impairment of fixed assets and provision for impairment of construction in progress.
1. In 2021, the company accrued bad debt reserves of 18089836641 yuan. The withdrawing method of the company’s bad debt provision is: the company adopts the allowance method to calculate the bad debt loss according to the accounting estimation of accounts receivable. The impairment of receivables is based on the assessment of the recoverability of receivables. Identifying the impairment of receivables requires the judgment and estimation of the management. The difference between the actual result and the original estimate will affect the book value of accounts receivable and the withdrawal or reversal of bad debt reserves of accounts receivable during the period when the estimate is changed.
2. In 2021, the company made provision for impairment of contract assets of 646605690 yuan. The recognition standard and accrual method of the company’s contract asset impairment provision are as follows: the company measures the loss provision according to the expected credit loss of the whole duration for the contract assets formed by daily business activities such as selling goods and providing labor services, regardless of whether there is a major financing component.
3. In 2021, the company accrued inventory falling price reserves of 715427761 yuan. The recognition standard and withdrawal method of the company’s inventory falling price reserves are as follows: according to the inventory accounting policy, the company measures according to the lower of cost and net realizable value, and withdraws the inventory falling price reserves for the inventories whose cost is higher than net realizable value and obsolete and unsalable. The impairment of inventories to net realizable value is based on the evaluation of the marketability and net realizable value of inventories. The appraisal of inventory impairment requires the management to make judgment and estimation on the basis of obtaining conclusive evidence and considering the purpose of holding inventory, the impact of events after the balance sheet date and other factors. The difference between the actual result and the original estimate will affect the book value of inventory and the withdrawal or reversal of inventory falling price reserves during the period when the estimate is changed.
4. In 2021, the company made provision for impairment of fixed assets of 1332606415 yuan. The recognition standard and withdrawal method of the company’s fixed assets impairment provision are: if there is any sign of impairment of the fixed assets measured by the cost mode on the balance sheet date, the impairment test shall be carried out. If the impairment test results show that the recoverable amount of the asset is lower than its book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss. The recoverable amount is the higher one between the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The provision for asset impairment is calculated and recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group to which the asset belongs shall be determined.
5. In 2021, the company made provision for impairment of construction in progress of 492716174 yuan. The recognition standard and withdrawal method of the company’s impairment provision for construction in progress are as follows: on the balance sheet date, the company checks whether there are signs of possible impairment for construction in progress. When there are signs of impairment, the company shall conduct impairment test to confirm its recoverable amount, and withdraw the impairment provision according to the part where the recoverable amount is lower than the book value. The recoverable amount of construction in progress is determined according to the higher of the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset.
3、 The impact of the current provision for asset impairment on the company
The company’s provision for asset impairment in 2021 totaled 21277192681 yuan, which is in line with the accounting standards for business enterprises and relevant policies and regulations. This provision for asset impairment is based on sufficient basis and fairly reflects the company’s asset status, making the company’s accounting information on asset value more authentic, reliable and reasonable. The provision for asset impairment this time will reduce the total profit of the company in 2021 by 21277192681 yuan. The provision for asset impairment this time has been audited and confirmed by Xin Certified Public Accountants (special general partnership).
It is hereby announced.
Qingdao Tgood Electric Co.Ltd(300001)
Board of directors
March 7, 2022
