Securities code: Great Wall International Acg Co.Ltd(000835) securities abbreviation: ST Changdong Announcement No.: 2022033 Great Wall International Acg Co.Ltd(000835)
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.
Great Wall International Acg Co.Ltd(000835) (hereinafter referred to as “the company”) held the first meeting of the ninth board of directors in 2022 and the first meeting of the ninth board of supervisors in 2022 on March 23, 2022. The meeting deliberated and adopted the proposal on the provision for asset impairment respectively. In accordance with the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the specific conditions of the company’s provision for asset impairment are hereby announced as follows:
1、 Overview of the provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
According to the accounting standards for business enterprises and the stock listing rules of Shenzhen Stock Exchange (revised in 2022), Shenzhen
Self regulatory guidelines for listed companies in stock exchanges No. 1 – standardized operation of listed companies on the main board and corporate accounting
Policies and other relevant provisions to truly and accurately reflect the financial position of the company as of December 31, 2021
According to the asset value and operating results, the company has conducted a comprehensive inspection and impairment test on all kinds of assets of the company and its subsidiaries, and believes that there are obvious signs of impairment of some assets. Based on the principle of prudence, the company
Relevant assets within the scope of consolidated statements as of December 31, 2013 shall be subject to corresponding impairment provision.
2. The asset scope, total amount and reporting period of the current provision for impairment
The assets of the company and its subsidiaries with possible signs of impairment at the end of 2021 include
Fixed assets, intangible assets, construction in progress, long-term deferred expenses, inventories, accounts receivable, other receivables, prepayments, goodwill, etc. after a comprehensive inventory and credit impairment and asset impairment test, it is proposed to withdraw various asset impairment reserves and asset impairment reserves of about 3027565 million yuan in 2021. The details are as follows:
Proportion of impairment accrued from the beginning of the year to the end of the year of category projects in the audited net profit attributable to shareholders in 2020
Accounts receivable – 570363840 2.81%
Other receivables -822358714 4.05% credit impairment loss prepayments -5266038 0.03%
Subtotal -1397988592 6.88%
Prepayments -696163851 3.43%
Inventory -259570351 1.28%
Fixed assets -12468960748 61.36%
Asset impairment loss intangible assets -12792020349 62.95% construction in progress -1246782203 6.14%
Long term deferred -1411866801 6.95%
Goodwill -1400000 0.01%
Subtotal -28877664303 142.11%
Total -30275652895 148.99%
The reporting period of the proposed provision for asset impairment is from January 1, 2021 to December 2021
31. The specific impairment items and amount shall be subject to the audited financial report in 2021.
3. Basis and reason for withdrawing asset impairment provision this time
According to the accounting standards for business enterprises, listing rules of Shenzhen Stock Exchange (revised in 2022), Shenzhen
Based on the principle of prudence, in order to truly reflect the company’s financial situation and help to provide investors with more authentic, reliable and accurate accounting information, the self regulatory guidelines for listed companies on the stock exchange No. 1 – standardized operation of listed companies on the main board and relevant provisions such as the accounting policies actually implemented by the company are responsible for the fixed assets, intangible assets, construction in progress, long-term deferred expenses Inventory, accounts receivable, other receivables, prepayments, goodwill and other assets were comprehensively checked, the possibility of impairment of various assets was fully evaluated and analyzed, and the provision for impairment of assets was determined.
Project name accrual reason
The bad debt loss of accounts receivable shall be judged according to the aging and recoverability, and the impairment shall be accrued
The bad debt loss of other receivables shall be determined according to the aging and recoverability, and the impairment shall be accrued
The bad debt loss of prepayment shall be judged according to the aging and recoverability, and the impairment shall be accrued
The impairment loss of prepayments shall be determined according to the aging and recoverability, and the impairment shall be withdrawn
The inventory depreciation loss is calculated and withdrawn according to the comparison between the realizable value of the inventory and the residual value of the book
The administrative department in charge of impairment loss of fixed assets informed Chuzhou creative park that phase I and phase II projects were illegal buildings and required to stop the use of the project, so the impairment was accrued
The administrative department in charge of impairment loss of construction in progress informed Chuzhou creative park that phase I and phase II projects were illegal buildings and required to stop the use of the project, so the impairment was accrued
The administrative department in charge of long-term deferred impairment loss informed Chuzhou creative park that phase I and phase II projects were illegal buildings and required to stop the use of the project, so the impairment was accrued
The administrative department in charge of the impairment loss of intangible assets informed Chuzhou creative park that the land of phase III was to be recovered, so the impairment was accrued
The impairment loss of goodwill is the current loss, and the impairment is accrued when the net assets are negative
4. Approval procedures for the provision for asset impairment this time
The provision for asset impairment has been made at the first extraordinary meeting of the ninth board of directors in 2022 and
It was deliberated and adopted at the first extraordinary meeting of the ninth board of supervisors in 2022.
The independent directors expressed independent opinions on the matter and agreed to withdraw the impairment provision this time. The audit committee of the board of directors made a reasonable explanation on the impairment provision expected to be withdrawn. The provision for impairment does not need to be submitted to the general meeting of shareholders for deliberation and approval.
2、 The impact of the current provision for asset impairment on the company
The total provision for impairment of various assets of the company this time is about 3027565 million yuan, which is included in the accounting of 2021
report form. It is expected to reduce the company’s net profit attributable to the shareholders of the parent company by about 3026765 million yuan in 2021 and the owner’s equity attributable to the parent company by about 3026765 million yuan at the end of 2021. The company will make full use of various means to strengthen the follow-up disposal, timely fulfill the obligation of information disclosure, safeguard the legitimate rights and interests of the company and protect the interests of shareholders.
The provision for asset impairment this time complies with the accounting standards for business enterprises and relevant accounting policies of the company, reflects the principle of accounting prudence and conforms to the actual situation of the company. After the provision for asset impairment loss this time, it can more fairly reflect the assets and operating conditions of the company in 2021, without damaging the interests of the company and shareholders.
3、 Notes of the audit committee of the board of directors on the provision for asset impairment
The audit committee of the board of directors of the company considered the proposal on the provision for asset impairment and considered 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, relevant accounting policies of the company and the actual situation of the company’s assets. After the asset impairment test, the provision for asset impairment is made based on the principle of prudence and has sufficient basis. After the provision for asset impairment is made, the financial statements of the company in 2021 can be presented more fairly
Reflect the company’s financial position, asset value and operating results as of December 31, 2021, so that the company’s
The calculation information is more reasonable. Therefore, the company agrees to withdraw the provision for asset impairment this time.
4、 Independent opinions of independent directors on the provision for asset impairment
The independent directors believe that the company’s provision for asset impairment this time meets the requirements of the accounting standards for business enterprises and the company’s accounting policies. After the company’s provision for asset impairment, it can more objectively and fairly reflect the company’s financial status and operating results as of December 31, 2021, and make the company’s accounting information about asset value more authentic, reliable and reasonable. The decision-making procedures of the board of directors for considering the matter are legal and compliant, and there is no situation that damages the interests of the company and shareholders, especially minority shareholders. We agree to withdraw the provision for asset impairment this time.
5、 Notes of the board of directors on the provision for asset impairment
The board of Directors believes that the provision for asset impairment follows and complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The provision for asset impairment is based on the principle of prudence, fully based and fairly reflects the company’s financial situation, asset value and operating results as of December 31, 2021, so as to make the company’s accounting information on asset value more authentic, reliable and reasonable.
6、 Notes of the board of supervisors on the provision for asset impairment
After verification, the board of supervisors believes that the company’s provision for asset impairment in 2021 is in line with the relevant provisions of the accounting standards for business enterprises and relevant accounting policies of the company, as well as the actual situation of the company. The basis is sufficient and the decision-making procedure is legal, which can more objectively and fairly reflect the company’s asset status and operating results, and is conducive to providing investors with more reliable financial information. Therefore, the board of supervisors agreed to withdraw the provision for asset impairment this time.
7、 Documents for future reference
1. Resolution of the first meeting of the ninth board of directors in 2022;
2. Resolutions of the first meeting of the ninth board of supervisors in 2022;
3. Statement on the reasonableness of the provision for asset impairment made by the audit committee of the ninth board of directors;
4. Independent opinions of independent directors on matters related to the resolutions of the first extraordinary meeting of the ninth board of directors in 2022.
It is hereby announced.
Great Wall International Acg Co.Ltd(000835) board of directors March 25, 2022
