Securities code: Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) securities abbreviation: Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) Announcement No.: 2022015
Jiangsu Jiuwu Hi-Tech Co.Ltd(300631)
Announcement on provision for impairment and write off of bad debts 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.
1、 Summary of provision for impairment and write off of bad debts
According to the accounting standards for business enterprises and the self regulatory guidelines for listed companies No. 2 – companies listed on GEM
Standardized operation of the company and accounting policies of Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) (hereinafter referred to as “the company”)
In accordance with relevant regulations, the company, based on the principle of prudence, has a certain risk for the end of 2021 within the scope of the consolidated financial statements
After a comprehensive inventory and impairment test of assets with signs of impairment, the total amount of impairment reserves is accrued
RMB 1535638045, and the details of impairment provision are as follows:
Unit: RMB
The opening balance of the project is withdrawn in the current period and reversed in the current period / other closing balances are written off
Loss of other receivables 64925224912468055758000 -6219291144194738
Bad debt of accounts receivable 67311890151465831825330662037 – 2409728627625385941 loss
Contract asset impairment 682784366 -65656871 — 21291969595835526 loss
Inventory falling price reserves – 44216286 — 44216286
Total 74788986051535638045336420037 -2684841228409632491
2、 Method of withdrawing impairment provision this time
(I) accounts receivable
(1) Impairment of other receivables
The loss reserves are measured according to the general method, and whether the credit risk has increased significantly since the initial recognition is evaluated on each balance sheet date. If the credit risk has increased significantly since the initial recognition, the company measures the loss reserve according to the amount of expected credit loss in the whole duration; If the credit risk does not increase significantly after initial recognition, the company shall measure the loss provision according to the amount of expected credit loss of the financial instrument in the next 12 months. On the balance sheet date, the credit loss of other receivables shall be measured according to the present value of the difference between the contract cash flow receivable and the expected cash flow receivable. When it is impossible to assess the expected credit loss information of individual other receivables at a reasonable cost, other receivables are divided into several combinations according to the characteristics of credit risk. With reference to the experience of historical credit loss, combined with the current situation and considering forward-looking information, the expected credit loss is estimated on the basis of combination. The basis for determining the combination is as follows:
Combination name: basis for determining combination
Aging portfolio other receivables with similar credit risk characteristics classified by aging
Receivables of related party portfolio from subsidiaries within the consolidation scope of the company
(2) Impairment of accounts receivable
Using the simplified measurement method, the loss reserve is measured according to the amount equivalent to the expected credit loss in the whole duration. On the balance sheet date, the credit loss of accounts receivable is measured according to the present value of the difference between the contract cash flow receivable and the expected cash flow receivable. When individual accounts receivable cannot evaluate the information of expected credit loss at a reasonable cost, the accounts receivable are divided into several combinations according to the characteristics of credit risk. With reference to the experience of historical credit loss, combined with the current situation and considering forward-looking information, the expected credit loss is estimated on the basis of combination. The basis for determining the combination is as follows:
Combination name: basis for determining combination
Aging portfolio accounts receivable with similar credit risk characteristics classified by aging
Receivables from related parties within the consolidation scope of the company
(3) Impairment of contract assets
Using the simplified measurement method to determine the expected credit loss of contract assets. On the balance sheet date, the company measures the credit loss of contract assets according to the present value of the difference between the contract cash flow to be received and the expected cash flow to be received. When it is impossible for a single contract asset to evaluate the information of expected credit loss at a reasonable cost, the company divides the contract assets into several combinations according to the characteristics of credit risk. With reference to the experience of historical credit loss, combined with the current situation and considering the forward-looking information, the expected credit loss is estimated on the basis of the combination. The basis for determining the combination is as follows:
Combination name: basis for determining combination
Aging portfolio contract assets with similar credit risk characteristics classified by aging
Completed and unsettled assets: completed and unsettled assets whose income is recognized by period method
Related parties combine the contract assets of related parties within the consolidation scope of the company
(II) provision for inventory impairment
Inventories are measured at the lower of cost and net realizable value. The net realizable value of inventory is the amount after the estimated selling price of inventory minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes. When determining the net realizable value of inventory, based on the conclusive evidence obtained, and considering the purpose of holding inventory and the impact of events after the balance sheet date, the net realizable value of inventory items at the end of the current period is determined based on the market price on the balance sheet date, except that there is clear evidence that the market price on the balance sheet date is abnormal.
3、 Impact of the current provision for impairment on the company
The company’s provision for asset impairment in 2021 totaled 1535638045 yuan, which is in line with the accounting standards for business enterprises and relevant policies and regulations, the actual situation of the company’s assets, can more fairly reflect the company’s asset status, and can make the company’s accounting information on asset value more authentic, reliable and reasonable. The provision for impairment of assets decreased the company’s total profit of the current period by 1535638045 yuan. Write off and other decreases in the current period will not affect the total profit of the company. The company’s provision for asset impairment has been audited and confirmed by an accounting firm.
It is hereby announced.
Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) board of directors
March 1, 2022
