Stock abbreviation: Hainan Strait Shipping Co.Ltd(002320) Stock Code: Hainan Strait Shipping Co.Ltd(002320) Announcement No.: 202209 Hainan Strait Shipping Co.Ltd(002320)
About the proposed demolition in the new harbour area
Announcement of asset impairment provision
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and are liable for false records, misleading statements or major omissions in the announcement.
In accordance with the accounting standards for Business Enterprises No. 8 - asset impairment issued by the Ministry of Finance and relevant provisions of the company's accounting policies, based on the principle of prudence, Hainan Strait Shipping Co.Ltd(002320) (hereinafter referred to as "the company") plans to withdraw an asset impairment provision of 520884 million yuan for the assets to be demolished in xinhaigang District, which will reduce the total profit of the company by 52.084 million yuan and the net profit by 442751 million yuan in 2021. The provision for impairment of assets has been deliberated and approved at the sixth meeting of the seventh board of directors of the company and needs to be submitted to the general meeting of shareholders of the company for deliberation. The details of the company's current provision for asset impairment are as follows:
1、 Overview of the provision for asset impairment this time
(I) asset formation
With the approval of zjxk [2017] No. 176 document of China Securities Regulatory Commission, the company acquired 100% equity of Haikou Xinhai Ferry Terminal Co., Ltd. (hereinafter referred to as "Xinhai ferry") by issuing shares to the controlling shareholder Hainan port and waterway Holding Co., Ltd. (hereinafter referred to as "Hainan port and waterway") on February 17, 2017, Xinhai ferry owns the assets of Haikou new harbor area. A total of 66 assets are to be demolished in the new harbor area, mainly including single buildings (including passenger station, complex building, security inspection station, ticket gate, etc.) and single equipment (including yard gate equipment, LED display screen and lighting facilities) in the port area. See the following table for the specific list (unit: 10000 yuan).
Asset category original value of assets as of December 31 accumulated depreciation net asset value as of December 31
Machinery and production equipment 1.55 1.33 0.22
Depot facilities 108.56 1.94 106.62
Office equipment 111.55 61.36 50.19
Buildings and structures 608046112589495457
Other port facilities 189.63 90.25 99.38
Power supply facilities and equipment 60.83 22.75 38.08
Total 655258130352524906
As of December 31, 2021, the original value of the assets to be demolished in xinhaigang district was 655258 million yuan, the accumulated depreciation was 130352 million yuan, and the net book value was 524906 million yuan.
(II) reasons for withdrawing asset impairment
On January 19, 2021, Xinhai ferry signed the framework agreement on undertaking the project of Haikou Xinhai ro Ro Terminal passenger transport hub with Hainan port and waterway. Since then, the investor of Xinhai passenger transport hub has changed to Xinhai ferry. As of December 2021, Xinhai ferry has invested 695 million yuan (including 126 million yuan of government subsidies) in the construction of passenger transport hub, accounting for 96% of the 724 million yuan of investment plan in 2021. With the continuous acceleration of the project construction progress and according to the design and planning of the outdoor production area, the location of some buildings and supporting production equipment in the port area conflicts with the functional layout of the future production area, affecting the subsequent project construction work. Based on this situation, combined with the current production situation of Xinhai ferry, The company has sorted out the assets that need to be demolished and disposed due to the construction of passenger transport hub, and plans to withdraw the asset impairment provision for the assets planned to be demolished.
(III) amount and calculation process of the current provision for asset impairment
According to point 6 of Article 5 of the accounting standards for Business Enterprises No. 8 - asset impairment: "the evidence reported by the enterprise indicates that the economic performance of the asset has been or will be lower than the expectation. For example, when the net cash flow created by the asset or the operating profit (or loss) realized is far lower (or higher) than the expected amount, it indicates that the asset may be impaired."
If the above 66 assets are dismantled, the asset form will no longer exist and can no longer create operating profits for the company. Therefore, the company reasonably judges that the above 66 assets have shown signs of impairment and shall conduct impairment test. According to Article 6 of the accounting standards for Business Enterprises No. 8 - asset impairment: "if there are signs of asset impairment, its recoverable amount shall be estimated. The recoverable amount shall be 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."
1. Present value of estimated future cash flow
Based on the sum of the residual value of 66 assets calculated according to the economic service life and the waste disposal income after demolition from January 1, 2022 to the specific demolition time point of each asset, the estimated future cash flow is obtained after deducting the demolition expenses. After discounting, the present value of the estimated future cash flow is 402200 yuan.
2. Net amount of fair value minus disposal expenses
The fair value of 66 assets is measured by the income method, and the result is the same as the present value of the estimated future cash flow, that is, the fair value is 402200 yuan; The disposal expenses mainly include the expenses incurred in the disposal of subsequent demolition wastes, including intermediary service fees, which are expected to be about 50000 yuan. Therefore, the net amount of fair value minus disposal expenses is 352200 yuan.
3. Impairment conclusion
Since the net amount of the fair value of 66 assets minus the disposal expenses is less than the present value of the estimated future cash flow, the recoverable amount of 66 assets is determined to be 402200 yuan.
The original value of 66 assets was 655258 million yuan. As of December 31, the accumulated depreciation was 130352 million yuan, and the net book value was 524906 million yuan. As the recoverable amount is expected to be 402200 yuan, the provision for asset impairment of 66 assets should be 520884 million yuan.
2、 Explanation of the board of directors on the rationality of the provision for asset impairment this time
The company's provision for asset impairment for the assets to be demolished in xinhaigang district is in line with the accounting standards for business enterprises and relevant accounting policies of the company, with sufficient basis, reflecting the principle of accounting prudence and in line with the actual situation of the company. The impairment of this asset is reviewed by the annual audit firm, and the amount of impairment is recognized and confirmed in the 2021 annual audit report. After the provision for impairment is made this time, the financial statements can more fairly reflect the company's financial status, asset value and operating results, make the company's accounting information more reasonable, and there is no situation that damages the interests of the company and all shareholders.
3、 The impact on the company of the accrued asset impairment loss
The company's provision for asset impairment of 520884 million yuan for the assets to be demolished in xinhaigang district will reduce the total profit of the company by 520884 million yuan and the net profit by 442751 million yuan in 2021, and correspondingly reduce the owner's equity attributable to the shareholders of Listed Companies in 2021. The final data shall be subject to the financial data audited by the annual audit firm.
It is hereby announced
Hainan Strait Shipping Co.Ltd(002320)
Board of directors
March 11, 2002
