Securities code: Palm Eco-Town Development Co.Ltd(002431) securities abbreviation: Palm Eco-Town Development Co.Ltd(002431) Announcement No.: 2022019 Palm Eco-Town Development Co.Ltd(002431)
Announcement on the reply to the inquiry letter of Shenzhen Stock Exchange
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.
Palm Eco-Town Development Co.Ltd(002431) (hereinafter referred to as " Palm Eco-Town Development Co.Ltd(002431) " or "the company") received the inquiry letter [company Department inquiry letter [2022] No. 20] issued by Shenzhen Stock Exchange on February 18, 2022. The company attached great importance to the problems mentioned in the inquiry letter. After internal verification, the company replied and explained as follows: Question 1. The performance forecast shows that, One of the reasons for the decline of your company's performance is that due to the impact of sudden rainstorm disaster and covid-19 epidemic in Henan Province, the progress of new orders in Henan lags behind, and your company has accrued asset impairment losses and credit impairment losses. Investors complained that they consulted whether the rainstorm in Henan in July caused losses to your company through the interactive easy platform in August 2021. Your company replied that the relevant impact was generally controllable, and your company reported a net profit of 338259 million yuan in the third quarter of 2021. Investors questioned the impact of Henan rainfall on your company. Please explain the estimated amount and main calculation process of the provision for impairment of relevant assets of your company, whether there is a situation of centralized and large provision for impairment of assets in the fourth quarter of 2021, whether the provision for impairment of assets reported in the third quarter of 2021 is sufficient and reasonable, and whether your company has disclosed the possible impact of Henan rainfall events on your company in a timely, accurate and complete manner.
reply:
The company disclosed the company's 2021 annual performance forecast on January 29, 2022. The reasons for performance changes in the announcement are as follows:
"During the reporting period, the change of the company's performance was mainly due to the impact of the macroeconomic situation and covid-19 epidemic, resulting in the slowdown of the progress of various engineering projects carried out by the company, and the overall scale of operating revenue decreased compared with the same period of last year; during 20202021, the company undertook more engineering business in Henan Province relying on the synergy of controlling shareholders, but due to the impact of sudden rainstorm disaster and covid-19 epidemic in Henan Province in 2021, As a result, the company's progress in converting newly signed orders into output value in Henan region lags behind expectations; Based on the principle of prudence, the company conducted impairment test on assets according to relevant accounting standards, and accrued asset impairment loss and credit impairment loss; At the same time, because there was no relevant equity transfer in the reporting period, the recognition of investment income decreased compared with the same period of last year. "
In the above statement, one of the main reasons that the company wants to explain the impact on the performance is that the overall economic situation and covid-19 epidemic have affected the company's engineering projects, and the sudden rainstorm disaster in Henan is one of the many influencing factors; At the same time, for the expression "due to the impact of sudden rainstorm disaster and covid-19 epidemic in Henan Province in 2021, the progress of converting newly signed orders into output value of the company in Henan region lags behind expectations; based on the principle of prudence, the company conducted impairment test on assets according to relevant accounting standards and accrued asset impairment loss and credit impairment loss;" The statement of the company aims to explain the factors affecting the change of performance item by item, and does not express the meaning that there is a direct causal relationship between the impact of Henan disaster and epidemic situation and the company's provision for asset impairment. Through the complaints and feedback from investors, the company deeply apologized for the misunderstanding caused to investors due to the general description of the reasons in the announcement on the performance forecast of 2021 and the lack of rigorous typesetting. The factors affecting the performance of the company in 2021 are further explained as follows:
(1) On the impact of Henan flood on the company
At that time, the investors' questions on the interactive platform mainly asked whether the severe rainstorm disaster in Henan Province on July 20 had caused losses to the company. After receiving the investors' questions, the personnel of the Securities Department learned from the company that the rainstorm in Henan had an impact on the company's projects in some areas of Henan, such as ponding of individual projects, damage to the project site and temporary inability to enter the construction site due to the rainstorm, However, it did not cause significant property losses or impact on personnel safety as a whole.
The rainstorm in Henan in July did affect the progress of some projects in the company's Henan region, resulting in a slowdown in the conversion of orders into output value. However, because extreme weather is only an accidental phenomenon, the rainstorm in Henan did not have a significant impact on the company's production and operation. Therefore, the company replied to investors that the impact of the rainstorm on the company's operation is generally controllable. (2) Impact of covid-19 epidemic on the company
In August after the rainstorm, covid-19 epidemic spread continuously in Henan Province. There were local confirmed cases in Zhengzhou, Zhoukou, Shangqiu, Zhumadian, Kaifeng, Xuchang, Anyang and other cities. According to the epidemic notification disclosed by Henan Provincial Health Commission, 167 local confirmed cases were reported in the province from July 31 to 24:00 on August 30, 2021.
In November 2021, the epidemic spread again in Henan Province, and local confirmed cases occurred in Zhengzhou and Zhoukou. According to the epidemic notification disclosed by Henan Provincial Health Commission, 238 local confirmed cases were reported in the province from July 31 to 24:00 on November 14, 2021.
Since the controlling shareholder of the company was changed to "Henan Yuzi affordable housing management and Operation Co., Ltd." in 2019 (the actual controller is "Henan Provincial Department of finance"), benefiting from the support and business coordination of the controlling shareholder, the company successively won several municipal EPC projects in Henan region from 2020 to 2021 (the specific project winning conditions are disclosed separately); The epidemic situation in Henan has a certain impact on several projects being started by the company. The specific projects affected by the epidemic include: Luohe Shali River phase II comprehensive treatment project (close to Xuchang), Luohe integration demonstration area project (close to Xuchang), Luohe Wuyang Zhangji community project (close to Xuchang), Luohe Wuyang vocational secondary school new campus project (close to Xuchang) Luohe City Linying county urban outer ring road construction project (phase II) (close to Xuchang), Zhumadian City Zhengyang County Shenshui River middle branch and Qingshui River Ecological Environment Treatment Project (epidemic area Zhumadian City), Luoyang Jili District Century Avenue and Zhongyuan Road Road Road Project (the project is close to the epidemic area Luoyang Xin'an County), Zhoukou City Xihua county shuanglanggou phase I ecological comprehensive treatment Two roads and one bridge project in Xihua county, Zhoukou City (Zhoukou City, a serious epidemic area), etc.
After the rainstorm, some project sites need to be sorted out and restored to their original state, while the covid-19 epidemic in Henan occurred continuously and repeatedly in the third and fourth quarter, resulting in certain restrictions on the company's project construction (materials can not arrive in time) and personnel flow in Henan. Moreover, due to the company's project construction, there are many Mobilization Management and construction personnel, in order to cooperate with the implementation of the government's epidemic prevention and control policy, The company must be more cautious about the Mobilization Construction of the project than before. Considering the construction and epidemic prevention measures, the company also took the initiative to slow down the construction progress of the project, resulting in the continuous impact on the overall promotion of the company's project in Henan in the fourth quarter; At the same time, due to the objective impact of epidemic control, the expansion progress of the company's new projects in Henan Province has slowed down, and the progress of converting new orders into output value has been delayed; Under the continuous influence of rainstorm and epidemic situation, the engineering revenue confirmed by the company in Henan region decreased significantly in the fourth quarter, which affected the confirmation of the company's revenue and profit in the fourth quarter. The gross profit of the business completed in the fourth quarter could not cover the expenses of the current quarter, which had a great impact on the profit loss of the whole year.
(3) Estimated amount and main calculation process of impairment provision for relevant assets
One of the reasons disclosed by the company in the 2021 annual performance forecast is that "based on the principle of prudence, the company conducted impairment test on assets according to relevant accounting standards and accrued asset impairment loss and credit impairment loss", As mentioned above, the expression of this sentence does not mean the impairment provision of Henan regional projects caused by Henan epidemic and rainstorm, but an overall description of the impact of the company's expected provision of asset impairment loss and credit impairment loss on the annual performance in 2021.
In terms of the provision of credit impairment losses, the company calculates the expected credit losses according to the requirements of the accounting standards for business enterprises, combined with the nature of funds, the actual occurrence of business, the aging migration and the prediction of future economic conditions, and considering all reasonable and reliable information. According to the company's accounting policies, the company combines financial assets according to similar credit risk characteristics. The grouping criteria include customer type, payment nature, overdue days, aging, etc. The company takes aging as the main risk feature and makes forward-looking prediction on the risk exposure it faces.
In the company portfolio, the proportion of bad debt reserves withdrawn by aging analysis method is as follows:
Accrual proportion of aging receivables (%)
Within 1 year (including 1 year) 5.00
1 to 2 years (including 2 years) 10.00
2 to 3 years (including 3 years) 20.00
3 to 4 years (including 4 years) 50.00
4 to 5 years (including 5 years) 100.00
More than 5 years 100.00
The proportion of bad debt reserves withdrawn by aging analysis method disclosed in the periodic reports of major companies in the same industry is as follows:
Company abbreviation aging analysis portfolio bad debt accrual proportion
Less than 1 year 1-2 years 2-3 years 3-4 years 4-5 years more than 5 years
Beijing Orient Landscape & Environment Co.Ltd(002310) 5.00% 10.00% 10.00% 30.00% 50.00% 100.00%
Lingnan Eco&Culture-Tourism Co.Ltd(002717) 4.82% 11.16% 20.49% 30.39% 49.46% 75.33%
Shandong Meichen Ecology & Environment Co.Ltd(300237) 5.00% 10.00% 15.00% 30.00% 50.00% 100.00%
Shenzhen Wenke Landscape Co.Ltd(002775) 5.00% 10.00% 15.00% 20.00% 50.00% 100.00%
Pubang Landscape Architecture Co.Ltd(002663) 5.00% 10.00% 10.00% 30.00% 50.00% 100.00%
Inner Mongolia M-Grass Ecology And Environment (Group) Co.Ltd(300355) 5.02% 10.02% 15.03% 30.55% 50.51% 100.00%
Cecep Techand Ecology&Environment Co.Ltd(300197) 5.00% 10.00% 15.00% 20.00% 50.00% 100.00%
Palm Eco-Town Development Co.Ltd(002431) 5.00% 10.00% 20.00% 50.00% 100.00% 100.00%
Compared with companies in the same industry, the credit impairment accrued by the company according to the aging combination is more cautious and sufficient. In 2021, the company preliminarily estimated that the amount of credit impairment was about 240 million yuan (Unaudited), of which the large amount was mainly the credit impairment loss of about 200 million yuan (equivalent to about 160 million yuan) accrued by Palm Garden (Hong Kong) Co., Ltd. (hereinafter referred to as "palm Hong Kong"), a wholly-owned subsidiary of the company, on the current accounts and dividends receivable of palm design Holdings Co., Ltd. (hereinafter referred to as "palm design Holdings"). Palm design holdings is 25% owned by palm Hong Kong and 75% owned by another strategic investor "national legend Investment Limited" (national legend Investment Limited, established on December 20, 2018, registered address: Jayla place, wickhams cay 1, Road Town, Tortola, British Virgin Island. Company number: 2 Unigroup Guoxin Microelectronics Co.Ltd(002049) . The actual controller of the company is Lai Guochuan, a natural person and has no relationship with the company.)
Palm design holdings is mainly an investment platform company established for investing in belgolin International (Hong Kong) Co., Ltd. (hereinafter referred to as "belgolin"). Palm design holdings does not operate other entity businesses at present. Its return of current accounts and dividends receivable mainly come from foreign investment income, foreign financing and other channels, The repayment ability is closely related to the operation of belgolin invested in it. Belgolin is mainly engaged in landscape design business. It is a leading landscape design company in the industry. It has strong advantages in design concept, construction methods and project management. Its brand has high market reputation and customer recognition in China. In the past two years, although affected by the external macroeconomic environment, real estate regulation and covid-19 epidemic, the overall operation of belgolin remained good and stable. In 2020, belgolin achieved an audited operating revenue of 160 million yuan and a net profit of 32 million yuan; In 2021, belgolin achieved an operating revenue of about (HK $156 million) and a net profit of about (HK $13.2 million) (the financial data of 2021 were Unaudited). Belgolin's performance has been stable and profitable in recent years. Palm design holdings is expected to achieve this through good investment income and the sale of equity by introducing third-party strategic shareholders in the future
