Securities code: Shenzhen Fluence Technology Plc(300647) securities abbreviation: Shenzhen Fluence Technology Plc(300647) Announcement No.: 2022034 Shenzhen Fluence Technology Plc(300647)
Announcement on the provision for credit impairment and 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.
1、 Overview of provision for impairment this time
1. Reasons for withdrawing impairment provision this time
Shenzhen Fluence Technology Plc(300647) (hereinafter referred to as “the company”) conducted impairment test on receivables, inventories, fixed assets, intangible assets, goodwill and other related assets at the end of 2021 in accordance with the accounting standards for business enterprises and the provisions of the company’s accounting policies and accounting estimates, and considered that some of the above assets had certain signs of impairment. Based on the principle of prudence, the company accrues credit and asset impairment reserves for relevant assets that may suffer asset impairment losses.
2. Details of the amount of impairment provision withdrawn this time
According to the impairment test, the company’s assets with signs of possible impairment at the end of 2021 include accounts receivable, other accounts receivable, notes receivable, goodwill, inventory, contract assets, fixed assets and other long-term assets. The total provision for credit and asset impairment in this year is 11722982479 yuan. Details are as follows:
Unit: Yuan
Current amount of the project
1. Provision for credit impairment 3706487696
Including: bad debt provision for accounts receivable 3034373533
Bad debt provision for other receivables 627762479
Provision for bad debts of notes receivable 44351684
2. Provision for asset impairment 8016494783
Including: provision for impairment of goodwill 7432597307
Inventory falling price reserves 505949341
Provision for impairment of contract assets -16599051
Provision for impairment of fixed assets and other long-term assets 94547186
Total 11722982479
2、 Recognition standard and withdrawal method of impairment provision this time
The provision for credit impairment accrued this time includes bad debt provision for accounts receivable, bad debt provision for other accounts receivable and bad debt provision for notes receivable; The provision for asset impairment includes provision for goodwill impairment, provision for inventory depreciation, provision for impairment of contract assets, provision for impairment of fixed assets and other long-term assets.
1. Recognition standard and withdrawal method of bad debt provision for accounts receivable, notes receivable and other receivables and provision for impairment of contract assets:
(1) Accounts receivable
For accounts receivable without major financing components, the company measures the loss reserve according to the amount equivalent to the expected credit loss in the whole duration.
For accounts receivable with significant financing components, the company does not choose the simplified treatment method, and measures the loss reserves based on the amount of expected credit loss in the next 12 months or the whole duration according to whether its credit risk has increased significantly since initial recognition.
In addition to the accounts receivable that individually assess credit risk, they are divided into different combinations based on their credit risk characteristics:
Basis for determining project portfolio
Combination 1: LED lighting and air conditioning this combination takes the LED lighting and air conditioning engineering business as the credit risk indicator
Combination 2: consumer electronics and led this combination takes the business of consumer electronics and LED cooling components as the feature of credit wind cooling components insurance
Portfolio 3: LED contract energy management this portfolio takes the LED contract energy management business as the credit risk feature
Combination 4: lithium battery cathode materials this combination takes the lithium battery cathode materials business as the credit risk feature
Combination 5: related parties within the consolidation scope. This combination is accounts receivable within the consolidation scope
(2) Notes receivable
The company measures the loss reserves for notes receivable according to the amount equivalent to the expected credit loss in the whole duration. Based on the credit risk characteristics of notes receivable, they are divided into different combinations:
Basis for determining project portfolio
The acceptor of bank acceptance bill is a bank with low credit risk
Commercial acceptance bills are classified according to the credit risk of the acceptor
(3) Other receivables
The impairment loss shall be measured according to the amount of expected credit loss in the next 12 months or the whole duration. In addition to other receivables that individually assess credit risk, they are divided into different combinations based on their credit risk characteristics:
Basis for determining project portfolio
Portfolio 1: deposits and deposits receivable
Reserve fund receivable in combination 2
Combination 3 current accounts receivable from non affiliated companies
Combination 4: accounts receivable from agency business
Combination 5 accounts receivable from related parties within the consolidation scope
(4) Contract assets
For contract assets without major financing components, the company measures the loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
For contract assets with significant financing components, the company does not choose the simplified treatment method, and measures the loss reserves according to the amount of expected credit loss in the next 12 months or the whole duration according to whether its credit risk has increased significantly since initial recognition:
In addition to the accounts receivable that individually assess credit risk, they are divided into different combinations based on their credit risk characteristics:
Basis for determining project portfolio
Combination 1: quality guarantee deposit. This combination is quality guarantee deposit
Combination 2: other items in this combination are construction project funds that have not been settled by the owner
2. The method for recognizing the net realizable value of inventory and the provision for depreciation:
Net realizable value refers to the amount of the estimated selling price of inventory minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes in daily activities. When determining the net realizable value of inventories, it shall be based on the conclusive evidence obtained, and consider the purpose of holding inventories and the impact of events after the balance sheet date.
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory falling price reserves shall be withdrawn. The provision for inventory falling price shall be withdrawn according to the difference between the cost of a single inventory item and its net realizable value. For the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; For the inventories related to the product series produced and sold in the same region, with the same or similar end use or purpose, and difficult to be measured separately from other items, the inventory falling price reserves can be accrued jointly.
After the provision for inventory falling price is made, if the factors affecting the previous write down of inventory value have disappeared, resulting in the net realizable value of inventory being higher than its book value, it shall be reversed from the amount of inventory falling price provision that has been made, and the reversed amount shall be included in the current profit and loss.
3. Recognition of recoverable amount of fixed assets and other long-term assets and provision for impairment:
The recoverable amount is the higher one between 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. The fair value of assets is determined according to the price of sales agreement in fair transaction; If there is no sales agreement but there is an active asset market, the fair value shall be determined according to the buyer’s bid of the asset; If there is no sales agreement and an active asset market, the fair value of the asset is estimated based on the best available information. Disposal expenses include legal expenses related to the disposal of assets, relevant taxes, handling expenses and direct expenses incurred to make the assets marketable. The present value of the estimated future cash flow of an asset is determined by selecting an appropriate discount rate according to the estimated future cash flow generated during the continuous use and final disposal of the asset. The provision for asset impairment is calculated and recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group is determined by the asset group to which the asset belongs. Asset group is the smallest asset portfolio that can generate cash inflow independently.
If the recoverable amount of fixed assets and other long-term assets is lower than their book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss.
4. Recognition standard and withdrawal method of goodwill impairment provision:
According to the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment, the goodwill formed by business combination, whether there is any sign of impairment or not, is tested for impairment every year. In the impairment test of goodwill, the book value of goodwill shall be allocated to the asset group or combination of asset groups expected to benefit from the synergy of business combination. When conducting the impairment test on the relevant asset group or combination of asset groups containing goodwill, if there are signs of impairment in the asset group or combination of asset groups related to goodwill, first conduct the impairment test on the asset group or combination of asset groups not containing goodwill, calculate the recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss. Then carry out impairment test on the asset group or combination of asset groups containing goodwill, and compare the book value of these relevant asset groups or combination of asset groups (including the book value of the apportioned goodwill) with their recoverable amount. If the recoverable amount of relevant asset groups or combination of asset groups is lower than its book value, the impairment loss of goodwill shall be recognized.
During the reporting period, due to the impact of the actual operation, strategic planning and industrial market changes of the combined subsidiaries Zhejiang jiongda Energy Technology Co., Ltd. and CIC photoelectric industry (Shenzhen) Co., Ltd., the company judged that the acquisition of capital
If there are signs of impairment of relevant goodwill generated from assets, it shall be in accordance with the accounting standards for Business Enterprises No. 8 – asset impairment and
According to the requirements of relevant regulations such as regulatory risk tip No. 8 – goodwill impairment, the company will
The goodwill of the acquired subsidiaries was tested for impairment on the benchmark date of 31st, and a professional evaluation institution was hired to evaluate the above-mentioned company
The total amount of goodwill impairment accrued in the current period is RMB
7432597307 yuan. The details of the provision for impairment of goodwill in 2021 are as follows:
Unit: Yuan
The name of the asset group of the current accrual of the current period, the book value of goodwill, including the provision for the impairment of the reputation of the asset of goodwill, the calculation basis and calculation process of the recoverable amount of the book value of the asset group recovered from the impairment of goodwill
Due to the merger of Zhejiang
Jiongda energy division according to goodwill
Technology Co., Ltd. 1017917451732756158686196560 Shenzhen Zhenye(Group)Co.Ltd(000006) 681081600 the expected book value of the asset group is the sum of the cash reputation and related assets and the present value of the asset group with goodwill flow
Due to merger, CIC
