Securities code: Suzhou Thvow Technology Co.Ltd(002564) securities abbreviation: Suzhou Thvow Technology Co.Ltd(002564) Announcement No.: 2022030
Suzhou Thvow Technology Co.Ltd(002564)
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.
In accordance with the requirements of the accounting standards for business enterprises and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and other relevant provisions, in order to truly and accurately reflect the company’s financial status, asset value and operating results as of December 31, 2021, based on the principle of prudence, a comprehensive inspection and impairment test have been conducted on all kinds of assets of the company and its subsidiaries, After verification by Zhonghua certified public accountants, it is proposed to withdraw a total of 1085334500 yuan of asset impairment reserves in 2021. The company held the 41st meeting of the Fourth Board of directors on March 23, 2022, and deliberated and adopted the proposal on the provision for asset impairment in 2021. The details are as follows:
1、 Overview of provision for asset impairment
Table I provision for asset impairment in 2021
Current amount of the project (10000 yuan)
Bad debt provision for accounts receivable 7254443
Provision for impairment of contract assets 1303147
Inventory falling price reserves 344598
Provision for impairment of fixed assets 91.93
Provision for impairment of goodwill 1941965
Total 10853345
2、 Standard for impairment provision
The impairment reserves accrued this time include the impairment reserves of receivables and contract assets, inventory depreciation reserves, fixed assets impairment reserves and goodwill impairment reserves.
(I) provision method for impairment of receivables and contract assets
Securities code: Suzhou Thvow Technology Co.Ltd(002564) securities abbreviation: Suzhou Thvow Technology Co.Ltd(002564) Announcement No.: 2022030
For the financial assets classified as measured at amortized cost, the company recognizes the impairment provision based on the expected credit loss.
For notes receivable, accounts receivable and contract assets, whether there is a major financing component or not, the company measures the loss reserves according to the expected credit loss throughout the duration.
When single notes receivable, accounts receivable, other receivables and contract assets cannot evaluate the information of expected credit loss at a reasonable cost, the company divides notes receivable and accounts receivable into several combinations according to the characteristics of credit risk, and calculates the expected credit loss on the basis of the combination.
For bills receivable and accounts receivable divided into portfolios, the company refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, and calculates the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration.
The company will include the loss reserves withdrawn or reversed into the current profits and losses.
(II) withdrawal method of inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, the inventory falling price reserves are accrued and included in the current profits and losses. 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. The company determines the net realizable value of inventory based on the conclusive evidence obtained, and considers the purpose of holding inventory, the impact of events after the balance sheet date and other factors.
If the net realizable value of the finished products produced by the materials held for production is higher than the cost, the materials shall still be measured according to the cost; If the decrease of material price indicates that the net realizable value of finished products is lower than the cost, the material shall be measured according to the net realizable value.
The net realizable value of inventories held for the execution of sales contracts or labor contracts is calculated based on the contract price. If the quantity of inventory held is more than the quantity ordered in the sales contract, the net realizable value of the excess inventory is calculated on the basis of the general sales price.
At the end of the period, the project under construction shall be subject to impairment test. If the estimated total cost of the construction contract exceeds the total contract revenue, the estimated loss of the contract shall be formed, and the depreciation reserves shall be withdrawn and recognized as the current expenses. During the construction period, the withdrawn depreciation reserves shall be offset against the contract cost with the construction progress. The company accrues inventory falling price reserves for engineering projects according to a single inventory item.
Unless there is clear evidence that the market price on the balance sheet date is abnormal, the net realizable value of inventory items is determined based on the market price on the balance sheet date.
Securities code: Suzhou Thvow Technology Co.Ltd(002564) securities abbreviation: Suzhou Thvow Technology Co.Ltd(002564) Announcement No.: 2022030
(III) provision method for impairment of fixed assets
In case of impairment of fixed assets, the amount of impairment provision shall be determined according to the difference between the book value and the recoverable amount and included in the current profit and loss; In case of impairment of fixed assets, a single impairment test shall be conducted and the provision shall be made on a single basis; If it is difficult to estimate the single recoverable amount of a fixed asset or a fixed asset cannot be separated from other assets to generate independent cash flow, it can be tested on the basis of asset group and provision for impairment can be made; Once the provision for impairment of fixed assets is recognized, it shall not be reversed.
(IV) provision method for goodwill impairment
For the goodwill separately listed in the financial statements, the book value of the goodwill shall be apportioned to the asset group or combination of asset groups during the impairment test. If the test results show that the recoverable amount of the asset group or combination of asset groups containing the amortized goodwill is lower than its book value, the corresponding impairment loss shall be recognized.
The amount of impairment loss shall first offset the book value of the goodwill allocated to the asset group or asset group combination, and then offset the book value of other assets in proportion according to the proportion of the book value of other assets other than goodwill in the asset group or asset group combination. Once the impairment loss of the above assets is recognized, it shall not be reversed in subsequent periods. According to the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment, the company conducted an impairment test on the goodwill formed by business combinations not under the same control on the base date of December 31, 2021. The financial department of the company preliminarily estimated and based on the principle of prudence, estimated that the amount of impairment of business reputation in 2021 was 194196500 yuan. The final data shall be determined by the evaluation institution and accounting firm.
3、 The impact of this provision for impairment on the company’s operating results
According to the audit of the accounting firm, the provision for asset impairment this time will reduce the total profit of the company in 2021 by 1085334500 yuan.
4、 Explanation of the board of directors on the rationality of the company’s provision for asset impairment
The board of Directors believes that according to the accounting standards for Business Enterprises No. 8 – asset impairment, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and the provisions of the company’s relevant accounting policies, the provision for asset impairment this time is fully based, fairly reflects the company’s asset status, reflects the principle of accounting prudence, and is in line with the actual situation of the company. After the provision for asset impairment is withdrawn, it can more fairly reflect the company’s financial status, asset value and operating results as of December 31, 2021, making the company’s accounting information more reasonable. The board of directors will instruct the management of the company to strengthen the management of accounts receivable, contract assets, inventory and goodwill assets, actively collect payment for goods, improve inventory turnover, strictly control investment in fixed assets and improve asset operation efficiency. Accordingly, the board of directors agreed that the company’s provision for asset impairment in 2021 totaled 1085334500 yuan.
Securities code: Suzhou Thvow Technology Co.Ltd(002564) securities abbreviation: Suzhou Thvow Technology Co.Ltd(002564) Announcement No.: 2022030
5、 Independent opinions of independent directors on the company’s provision for asset impairment
Independent directors believe that the company’s provision for asset impairment fairly reflects the company’s asset status, reflects the changes in the national economic environment, ensures the standardized operation of the company, and fairly reflects the company’s financial status and operating results. The company’s provision for asset impairment this time is in line with the overall interests of the company, there is no behavior damaging the interests of the company and shareholders, and the approval procedures comply with the provisions of relevant laws and regulations and the articles of association. Therefore, we agree that the company’s provision for asset impairment in 2021 totaled 1085334500 yuan.
6、 The audit committee of the board of directors on the reasonableness of the company’s provision for asset impairment in 2021. After deliberation, the audit committee of the board of directors of the company believes that the provision for asset impairment is in line with the accounting standards for business enterprises and relevant accounting policies of the company, fully and fairly reflects the status of the company’s assets, reflects the changes of the national economic environment, and conforms to the principle of accounting prudence, The provision for asset impairment this time is in line with the actual situation of the company. After the provision for asset impairment is withdrawn, the company’s financial position and asset value as of December 31, 2021 can be more fairly reflected, making the company’s accounting information more reasonable. Based on this, the audit committee of the board of directors agreed that the company had withdrawn a total of 1085334500 yuan of asset impairment reserves in 2021. 7、 Review opinions of the board of supervisors on the company’s provision for asset impairment
The board of supervisors believes that: on the basis of comprehensive inspection and impairment test of various assets of the company and its subsidiaries, the company withdraws the provision for asset impairment in accordance with the accounting standards for business enterprises and relevant regulations, which is in line with the actual situation of the company. After the withdrawal, it can more fairly reflect the asset status of the company, and the decision-making procedure of the board of directors on this matter is legal. Therefore, the board of supervisors agreed that the company should make a provision for asset impairment of 1085334500 yuan in 2021. 8、 Documents for future reference
1. Resolution of the 41st meeting of Suzhou Thvow Technology Co.Ltd(002564) the 4th board of directors;
2. Suzhou Thvow Technology Co.Ltd(002564) the resolution of the 28th meeting of the 4th board of supervisors;
3. Independent opinions of Suzhou Thvow Technology Co.Ltd(002564) independent directors on relevant matters of the 41st meeting of the Fourth Board of directors;
4. Suzhou Thvow Technology Co.Ltd(002564) board of directors audit committee’s statement on the reasonableness of the provision for asset impairment in 2021.
It is hereby announced.
Suzhou Thvow Technology Co.Ltd(002564) board of directors March 25, 2022
