Securities code: Cngr Advanced Material Co.Ltd(300919) securities abbreviation: Cngr Advanced Material Co.Ltd(300919) Announcement No.: 2022017 Cngr Advanced Material Co.Ltd(300919)
Announcement on the provision for asset impairment
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
Cngr Advanced Material Co.Ltd(300919) (hereinafter referred to as “the company”) held the 27th meeting of the first board of directors and the 15th meeting of the first board of supervisors on March 14, 2022, deliberated and approved the proposal on withdrawing the provision for asset impairment in 2021, and agreed to withdraw the provision for asset impairment this time. The details are hereby announced as follows:
1、 Overview of the provision for asset impairment this time
In order to objectively and fairly reflect the company’s financial situation and operating results, based on the principle of prudence, in accordance with the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies, the company conducted a comprehensive inventory of all assets within the scope of the consolidated statements in 2021, fully evaluated and analyzed the assets with possible signs of impairment, and conducted asset impairment test, Based on the principle of prudence, the company accrues impairment reserves for relevant assets that may have asset impairment losses.
After the company conducted impairment test on the assets with possible signs of impairment within the scope of consolidated statements, the total provision for asset impairment in 2021 was 624597 million yuan, as follows:
Unit: RMB 10000
Category statement items: accrued amount in 2021
Accounts receivable 351288
Bad debt provision
Other receivables -322.03
Inventory falling price reserves 305512
As of December 31, 2021, the balance of bad debt provision for accounts receivable was 483285 million yuan, the balance of bad debt provision for other accounts receivable was 5.605 million yuan, and the balance of inventory falling price provision was zero. All inventory falling price provisions accrued in the current period have been written off.
2、 The recognition standard, withdrawal method and amount of the provision for asset impairment this time
1. Bad debt reserves
(1) Accounts receivable
The company adopts the simplified model of expected credit loss, that is, it always measures its loss reserves according to the amount of expected credit loss in the whole duration, and the increased or reversed amount of loss reserves formed therefrom is included in the current profit and loss as impairment loss or gain.
Simplified model of expected credit loss: always measure its loss reserves according to the amount of expected credit loss in the whole duration. 1) measure the accounts receivable with expected credit loss according to the combination
The basis for determining the portfolio of projects and the method of measuring expected credit loss
The company considers all reasonable and based information, including historical credit loss experience, accounts receivable credit, and considers forward-looking information. Combined with the current situation and the prediction of future economic conditions, the company combines the default risk exposure and the credit loss rate of the whole duration through the aging combination, and combines the pre risk characteristics in a combined manner
Estimate the credit loss in the current period.
Accounts receivable – accounts receivable: the value of accounts receivable between member enterprises included in the consolidated statement minus the consolidated range is tested separately. If there is objective evidence that it has been impaired, the bad debt provision shall be withdrawn according to the expected credit loss within the consolidation scope of the company during the whole duration. After the impairment test, there is no credit deduction from related parties
No provision for bad debts will be made if the amount is within the specified amount.
2) If there is objective evidence indicating that a certain account receivable has suffered credit impairment, the company shall make a single provision for bad debt of the account receivable and recognize the expected credit loss within the whole duration.
(2) Other receivables
The company takes into account the past events, current situation, prediction of future economic conditions and other reasonable and reliable information, takes the risk of default as the weight, calculates the probability weighted amount of the present value of the difference between the cash flow receivable under the contract and the cash flow expected to be received, and recognizes the expected credit loss.
The company measures the expected credit losses of financial instruments at different stages. If the credit risk of the financial instrument has not increased significantly since the initial recognition, it is in the first stage, and the company measures the loss reserve according to the expected credit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since its initial recognition, but there is no credit impairment, it is in the second stage, and the company measures the loss provision according to the expected credit loss of the whole duration of the instrument; If a financial instrument has been impaired since its initial recognition, it is in the third stage, and the company measures the loss provision according to the expected credit loss of the whole duration of the instrument. The company adopts the general model of expected credit loss for other receivables. If there is objective evidence indicating that a certain other receivable has suffered credit impairment, the company shall withdraw bad debt reserves for the other receivables individually and recognize the expected credit loss within the whole duration.
2. Inventory falling price reserves
On the balance sheet date, the company conducts a comprehensive inventory of inventories and measures them according to the lower of cost and net realizable value. When the inventory cost is higher than the net realizable value, the inventory falling price reserves shall be withdrawn according to the difference between the two. For inventories of finished products and materials directly used for sale, in the normal production and operation process, the net realizable value is determined by deducting the estimated selling expenses and taxes from the estimated selling price of the inventory. For the inventories of materials that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated completion cost, sales expenses and taxes. On the balance sheet date, if there is a contract price agreement for one part of the same inventory and there is no contract price for other parts, the net realizable value shall be determined respectively, and compared with its corresponding cost to determine the amount of inventory falling price reserves withdrawn or reversed respectively.
3、 The impact of the current provision for impairment on the company
The provision for asset impairment in this period is in line with the actual situation of the company’s assets and the provisions of relevant accounting policies. The provision for asset impairment can more fairly reflect the company’s asset status.
The total provision for asset impairment in 2021 is 624597 million yuan, of which 305512 million yuan of inventory falling price provision has been written off. After integrating the impact of the write off of inventory falling price provision, the total consolidated profit of the company is reduced by 319085 million yuan.
4、 Review opinions on the provision for asset impairment this time
1. Review opinions of the board of directors
The board of Directors believes that the provision for asset impairment is in line with the accounting standards for business enterprises and relevant accounting policies of the company, and fairly reflects the financial status, asset value and operating results of the company as of December 31, 2021 in accordance with the principle of prudence and the actual situation of the company’s assets. The board of directors agreed to withdraw the provision for asset impairment this time.
2. Opinions of independent directors
After verification, the independent directors believe that the company has fulfilled the corresponding approval procedures for the provision for asset impairment in 2021, which is in line with the accounting standards for business enterprises and the relevant accounting policies of the company and the actual situation of the company. After the provision for asset impairment is made this time, the company’s financial statements can more fairly reflect the company’s financial situation and help to provide investors with more true and accurate accounting information, without damaging the interests of the company and all shareholders, especially minority shareholders. Therefore, the independent directors agreed to withdraw the provision for asset impairment this time.
3. Opinions of the board of supervisors
The board of supervisors held that the company’s provision for asset impairment in 2021 was in line with the relevant provisions of the accounting standards for business enterprises and the company’s relevant accounting systems, the approval procedures were legal, the provision for asset impairment was fair and reasonable, and in line with the actual situation of the company. The board of supervisors agreed with the company’s provision for asset impairment this time.
4、 Documents for future reference
1. Resolutions of the 27th meeting of the first board of directors of the company;
2. Resolutions of the 15th meeting of the first board of supervisors of the company;
3. Independent opinions of independent directors on matters related to the 27th meeting of the first board of directors.
It is hereby announced.
Cngr Advanced Material Co.Ltd(300919)
Board of directors
March 16, 2002
