Securities code: Holsin Engineering Consulting Group Co.Ltd(603909) securities abbreviation: Holsin Engineering Consulting Group Co.Ltd(603909) Announcement No.: 2022012 Holsin Engineering Consulting Group Co.Ltd(603909)
Announcement on the provision for asset impairment in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
On March 22, 2022, Holsin Engineering Consulting Group Co.Ltd(603909) (hereinafter referred to as " Holsin Engineering Consulting Group Co.Ltd(603909) " or "the company") held the third meeting of the Fourth Board of directors, deliberated and approved the proposal on the provision for asset impairment in 2021. According to the requirements of the accounting standards for business enterprises and the company's accounting policies, the company plans to withdraw 4281157246 yuan of asset impairment loss this year, as follows:
1、 Overview of provision for asset impairment
1. Reasons for withdrawing provision for asset impairment
According to the requirements of the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, in order to truly and accurately reflect the company's financial position, asset value and operating results as of December 31, 2021, based on the principle of prudence, the company has conducted a comprehensive inspection and impairment test on all kinds of relevant assets, and plans to withdraw corresponding impairment reserves for relevant assets within the scope of the company's consolidated statements as of December 31, 2021.
2. Scope and amount of assets for which provision for asset impairment is made this time
After a comprehensive inventory and asset impairment test of assets with possible signs of impairment at the end of 2021, the company plans to withdraw asset impairment loss of 4281157246 yuan in 2021, as follows:
Unit: RMB
Proportion of project amount in the audited net profit attributable to the owner of the parent company in 2021 (%)
Credit impairment loss 4202140516 103.94
Asset impairment loss 79016730 1.95
Total 4281157246 105.89
2、 The impact of the current provision for asset impairment on the company
The provision for asset impairment this time will reduce the net profit of the company in 2021 by 3522552461 yuan and the owner's equity of the company at the end of 2021 by 3522552461 yuan.
3、 Explanation of the basis and reason for the provision for asset impairment this time
The company recognizes the provision for loss of receivables on the basis of expected credit loss, takes into account reasonable and reliable information such as relevant past events, current situation and prediction of future economic conditions, and takes the risk of default as the weight to calculate 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, so as to confirm the expected credit loss.
1. For accounts receivable, no matter whether it contains major financing components or not, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration. The increased or reversed amount of loss reserves formed therefrom is included in the current profit and loss as impairment loss or gain. The accrual method is as follows:
(1) If there is objective evidence indicating that a certain account receivable has suffered credit impairment, the company shall withdraw bad debt provision for the account receivable and recognize the expected credit loss.
(2) At the level of single instrument, the company cannot obtain sufficient evidence of significant increase in credit risk at reasonable cost, but it is feasible to evaluate whether the significant increase in credit risk is feasible on the basis of combination, so the company divides the accounts receivable portfolio according to different customer classification, account age and other credit risk characteristics, determines the expected credit loss rate and withdraws bad debt reserves accordingly.
2. For contract assets, the company's determination method and accounting treatment method of expected credit loss of contract assets refer to the determination method and accounting treatment of expected credit loss of accounts receivable.
3. For commercial acceptance bills, the company considers that there is a correlation between the probability of default and the aging, and accrues bad debt reserves with reference to the accounting estimation policy of expected credit loss of accounts receivable.
4. For other receivables, the company assesses whether the credit risk has increased significantly since the initial recognition on each balance sheet date, and divides the process of credit impairment into three stages. For different stages, different impairment accounting methods are adopted:
(1) If the credit risk does not increase significantly after initial recognition, it is in the first stage. For other receivables at this stage, the company measures the loss provision according to the expected credit loss in the next 12 months, and calculates the interest income according to the book balance and the effective interest rate.
(2) If the credit risk has increased significantly since initial recognition, but no credit impairment has occurred, it is in the second stage. For other receivables at this stage, the company measures the loss provision according to the expected credit loss throughout the duration, and calculates the interest income according to the book balance and the effective interest rate.
(3) If credit impairment occurs after initial recognition, it is in the third stage. For other receivables in this stage, the company shall measure the loss reserves individually according to the expected credit loss in the whole duration. The interest income shall be calculated according to the amortized cost and the effective interest rate.
The division of the above three stages is applicable to other receivables without credit impairment at the time of purchase or source. For other receivables with credit impairment at the time of purchase or source, the company measures the loss provision individually according to the amount equivalent to the expected credit loss in the whole duration, and calculates the interest income according to the amortized cost and the effective interest rate adjusted by credit.
If the company cannot obtain sufficient evidence on whether the credit risk has increased significantly at a reasonable cost at the level of single instrument, and it is feasible to evaluate whether the credit risk has increased significantly on the basis of combination, the company divides other accounts receivable combinations according to the common risk characteristics of debtor classification, payment nature and aging, determines the expected credit loss rate and withdraws bad debt reserves accordingly.
5. According to the above standards, the company accrued 4281157246 yuan of impairment loss of receivables in 2021, including 41 Jishi Media Co.Ltd(601929) 61 yuan of credit impairment loss of receivables, 79016730 yuan of asset impairment loss of contract assets, 17252500 yuan of credit impairment loss of commercial acceptance bill, and 59200055 yuan of credit impairment loss of other receivables.
4、 Notes of the audit committee of the board of directors on the company's provision for asset impairment
After reviewing the proposal on the provision for asset impairment in 2021, the audit committee of the board of directors of the company believes that the provision for asset impairment of the company this time complies with and complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision for asset impairment is sufficient and in line with the current situation of the company's assets. The provision for asset impairment is based on the principle of prudence, which helps to more fairly reflect the company's financial status, asset value and operating results as of December 31, 2021, and make the company's accounting information more reasonable.
5、 Opinions of independent directors
We agree to the proposal on the provision for asset impairment in 2021. The company's provision for asset impairment this time complies with and complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision for asset impairment is sufficient and in line with the current situation of the company's assets. The current provision for asset impairment is based on the principle of prudence
Reflect the company's financial status, asset value and operating results as of December 31, 2021, so as to make the company's accounting information more reasonable. We have not found any situation that damages the interests of the company and shareholders, especially minority shareholders. We agree to submit the proposal to the general meeting of shareholders of the company for deliberation.
6、 Opinions of the board of supervisors
The board of supervisors believes that: according to the accounting standards for business enterprises and relevant accounting policies of the company, the company's provision for asset impairment is in line with the actual situation of the company. After the provision for asset impairment is made, it can more fairly reflect the financial status, asset value and operating results 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 accounting standards for business enterprises. The board of supervisors agreed that the company should withdraw the provision for asset impairment this time.
It is hereby announced.
Holsin Engineering Consulting Group Co.Ltd(603909) board of directors
March 23, 2002
