Securities code: Dark Horse Technology Group Co.Ltd(300688) securities abbreviation: Dark Horse Technology Group Co.Ltd(300688) Announcement No.: 2022014 Dark Horse Technology Group Co.Ltd(300688)
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.
Dark Horse Technology Group Co.Ltd(300688) (hereinafter referred to as “the company”) held the second meeting of the third board of directors and the second meeting of the third board of supervisors on March 15, 2022, and deliberated and adopted the proposal on the provision for asset impairment in 2021 respectively. The specific contents of the provision for asset impairment are as follows:
1、 Summary of asset impairment loss accrued this time
(I) reasons for withdrawing asset impairment loss this time
In order to truly reflect the company’s financial situation and asset value, the company checked, analyzed and evaluated all kinds of assets at the end of 2021. After the asset impairment test, the company believes that some assets have certain signs of impairment. Based on the principle of prudence, the company has conducted relevant evaluation and test on the assets that may have value reduction.
In accordance with the relevant provisions of the accounting standards for business enterprises and the relevant accounting policies of the company, the company has conducted an impairment test on the accounts receivable, contract assets, other receivables and long-term equity investment within the scope of the consolidated statements as of December 31, 2021, and made an impairment provision according to the test results.
(II) asset scope and total amount of the current provision for asset impairment loss
After a comprehensive inventory and impairment test of the assets that may show signs of impairment within the scope of the company’s consolidated statements as of December 31, 2021, the provision for asset impairment of the company in 2021 is RMB 115675 million. The details of provision for impairment are as follows:
Amount of provision for impairment in 2021
Asset impairment loss: 795438939
Impairment loss of long-term equity investment 6185551
Contract asset impairment loss 789253388
Credit impairment loss: 361309676
Bad debt loss of accounts receivable 356703378
Bad debt loss of other receivables 4606298
Total 1156748615
Note: any discrepancy between the total number and the mantissa of the sum of the sub item values in this announcement is caused by rounding. (III) recognition standard and method of withdrawing asset impairment loss this time
1. Description of the provision for bad debts of accounts receivable this time
For receivables with significant financing components, the company chooses to adopt 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.
The company considers all reasonable and based information, including forward-looking information, to estimate the expected credit loss of accounts receivable individually or in combination. The standards for individual withdrawal are as follows:
(1) For receivables with significant single amount and single provision for bad debts:
The judgment basis or amount standard for the company to recognize receivables with an amount of more than 1 million yuan as significant single amount
Receivables with significant amount.
If the single amount is significant and the bad debt provision is withdrawn separately, the impairment test shall be conducted separately, and the bad debt provision shall be withdrawn according to the difference between the present value of its future cash flow and its book value.
(2) For accounts receivable with insignificant single amount but single provision for bad debt reserves:
For accounts receivable with insignificant single amount but obviously different individual credit risk characteristics, and there is objective evidence that the reason for the single withdrawal of bad debt provision is impaired, the bad debt provision withdrawn according to the aging analysis method can not reflect the actual situation, and the company conducts a separate impairment test.
The impairment test is conducted separately, and the bad debt provision is calculated according to the difference between the present value of its future cash flow and its book value
Provision for bad debts.
(3) For the accounts receivable divided into portfolio, the company refers to the historical credit loss experience when measuring the expected credit loss of accounts receivable, takes the aging of accounts receivable as the basis, considers the influence of customer nature, business nature and forward-looking information, and uses the comparison table of business, customer nature and expected loss rate to determine the expected credit loss of the accounts receivable portfolio.
The company adopts the general model of expected credit loss for other receivables.
If the credit risk of the financial instrument has increased significantly since the initial recognition, the company measures its loss reserves according to the amount equivalent to the expected credit loss of the financial instrument in the whole duration; If the credit risk of the financial instrument does not increase significantly after initial recognition, the company measures its loss reserves according to the amount equivalent to the expected credit loss of the financial instrument in the next 12 months. The increase or reversal amount of the loss reserves thus formed shall be included in the current profits and losses as impairment losses or gains.
For the specific assessment of the company’s credit risk, see note IX, risks related to financial instruments in this report.
Generally, if it is overdue for more than 120 days, the company considers that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increased significantly since initial recognition.
Specifically, the company divides the process of credit impairment of financial instruments without credit impairment at the time of purchase or source into three stages. There are different accounting treatment methods for the impairment of financial instruments at different stages: the first stage: the credit risk has not increased significantly since initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the expected credit loss in the next 12 months, and calculate the interest income according to its book balance (i.e. without deducting the impairment provision) and the effective interest rate (if the instrument is a financial asset, the same below).
Stage II: credit risk has increased significantly since initial recognition, but credit impairment has not occurred
For a financial instrument at this stage, the enterprise shall measure the provision for loss according to the expected credit loss of the whole duration of the instrument, and calculate the interest income according to its book balance and effective interest rate.
Stage III: credit impairment after initial recognition
The interest provision of the financial instrument shall be calculated according to the expected loss of the financial instrument in the first two stages, but the interest provision of the financial instrument shall be calculated according to the expected loss of the financial instrument in the first two stages. For financial assets with credit impairment, the enterprise shall calculate the interest income according to its amortized cost (book balance minus impairment provision, i.e. book value) and the effective interest rate.
For financial assets with credit impairment at the time of purchase or source, the enterprise shall only recognize the change of expected credit loss in the whole duration after initial recognition as loss provision, and calculate the interest income according to its amortized cost and the effective interest rate adjusted by credit.
3. Description of provision for impairment of contract assets this time
For contract assets that do not contain major financing components, the company adopts the simplified model of expected credit loss, that is, the loss provision is always measured according to the amount equivalent to the expected credit loss in the whole duration. The increase or reversal of the loss provision is included in the current profit and loss as impairment loss or gain.
For contract assets with significant financing components, the company chooses to adopt the simplified model of expected credit loss, that is, the loss provision is always measured according to the amount equivalent to the expected credit loss in the whole duration. The increase or reversal amount of the loss provision is regarded as impairment loss or profit and included in the current profit and loss.
4. Description of the provision for impairment of long-term equity investment assets this time
If there is objective evidence of impairment of investments in subsidiaries, associates and joint ventures on the balance sheet date, the corresponding impairment provision shall be withdrawn according to the difference between the book value and the recoverable amount.
2、 Impact of the provision for asset impairment on the company during the reporting period
Audited by Tianzhi International Certified Public Accountants (special general partnership), during the reporting period, the provision of credit impairment loss of 361309676 yuan and asset impairment loss of 795438939 yuan will reduce the total profit of the company by 1156748615 yuan and the net profit attributable to the owner of the parent company in the consolidated statements of the company by 1156748615 yuan, And correspondingly reduce the company’s net asset value at the end of the reporting period, which has no impact on the company’s operating cash flow in the reporting period.
3、 Independent opinions of independent directors on the provision for asset impairment this time
After reviewing the relevant materials, the independent directors of the company believe that based on the principle of prudence, the company has made provision for impairment of relevant assets within the scope of consolidated statements as of December 31, 2021 in strict accordance with the accounting standards for business enterprises, the articles of association, the company’s accounting policies and other relevant laws, regulations and normative documents, The accrual method and decision-making procedure are legal and effective. After the provision for asset impairment is withdrawn this time, it can more truly and accurately reflect the asset value and financial status of the company, help to provide investors with more reliable accounting information, and there is no situation that damages the interests of the company and all shareholders. Therefore, the independent directors of the company agreed to withdraw the provision for asset impairment this time.
4、 Opinions of the board of supervisors on the provision for asset impairment this time
The board of supervisors checked the provision for asset impairment of the company this time. The provision for asset impairment of the company is made in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, which is in line with the actual situation of the company. After the provision for asset impairment is made this time, it can more truly and accurately reflect the asset value and financial status of the company as of December 31, 2021. The decision-making procedure of the company’s board of directors on this proposal complies with relevant laws and regulations and the relevant provisions of the articles of association, and the board of supervisors agrees to the company’s provision for asset impairment this time.
It is hereby announced.
Dark Horse Technology Group Co.Ltd(300688) board of directors March 17, 2022
