Securities code: Fspg Hi-Tech Co.Ltd(000973) securities abbreviation: Fspg Hi-Tech Co.Ltd(000973) Announcement No.: 202208 Fspg Hi-Tech Co.Ltd(000973)
Announcement on the provision of credit impairment loss and asset impairment loss 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.
On March 24, 2022, Fspg Hi-Tech Co.Ltd(000973) (hereinafter referred to as "the company") deliberated and approved the proposal on the company's provision of credit impairment loss and asset impairment loss in 2021 at the 21st Meeting of the 10th board of directors and the 13th meeting of the 10th board of supervisors. This proposal must be submitted to the general meeting of shareholders of the company for deliberation. The details are hereby announced as follows:
1、 Overview
According to the accounting standards for business enterprises and other relevant provisions, the company has conducted a comprehensive inventory of various assets. In order to objectively, truly and accurately reflect the company's financial position, asset value and operation as of December 31, 2021, based on the principle of prudence, the company plans to withdraw impairment reserves for relevant assets that may have asset impairment losses. With the approval of the 18th meeting of the 10th board of directors of the company, the company has accrued all kinds of credit impairment losses and asset impairment reserves of RMB 398503 million in the first three quarters of 2021. The company plans to accrue all kinds of credit impairment losses and asset impairment reserves of RMB 1007747 million in 2021, covering the above amount of impairment reserves accrued in the first three quarters of 2021. The details are as follows:
Accrued amount of the project in the reporting period (10000 yuan)
1、 Credit impairment loss 799.98
Including: bad debt provision for accounts receivable 403.45
Bad debt provision for other receivables 400.67
Receivables financing -4.14
2、 Asset impairment loss 927749
Including: inventory falling price reserves 243927
Provision for impairment of fixed assets 101652
Provision for impairment of intangible assets 117436
Provision for impairment of long-term equity investment 421243
Provision for impairment of goodwill 434.91
Total 1007747
2、 Credit impairment loss and asset impairment loss withdrawn this time
1. Credit impairment loss
(1) The company conducts impairment accounting treatment and recognizes loss reserves for financial assets (including receivables) measured at amortized cost, financial assets measured at fair value and whose changes are included in other comprehensive income and lease receivables on the basis of expected credit losses. Expected credit loss refers to the weighted average value of credit loss of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be received by the company discounted at the original effective interest rate, that is, the present value of all cash shortages. Except for the purchased or originated financial assets with credit impairment, the company assesses whether the credit risk of relevant financial assets has increased significantly since initial recognition on each balance sheet date. If the credit risk does not increase significantly after initial recognition and is in the first stage, the company measures the loss reserve according to the amount equivalent to the expected credit loss of the financial asset in the next 12 months; If the credit risk has increased significantly since the initial recognition, but there is no credit impairment, in the second stage, the company measures the loss reserve according to the amount equivalent to the expected credit loss within the whole duration of the financial asset; If a financial asset has been impaired since its initial recognition, it is in the third stage, and the company measures the loss reserve according to the amount equivalent to the expected credit loss of the financial asset in the whole duration. When evaluating the expected credit loss, the company takes into account the reasonable and reliable information about past events, current conditions and future economic conditions, including forward-looking information, which can be obtained without unnecessary additional costs or efforts on the balance sheet date.
The expected credit loss in the next 12 months refers to the expected credit loss caused by the possible default of financial assets within 12 months after the balance sheet date (if the expected duration of financial assets is less than 12 months, it is the expected duration), which is a part of the expected credit loss in the whole duration.
For financial instruments with low credit risk on the balance sheet date, assuming that their credit risk has not increased significantly since initial recognition, the company chooses to measure the loss provision according to the expected credit loss in the next 12 months. For the financial assets in the first and second stages and with low credit risk, the company calculates the interest income according to the book balance and actual interest rate without deducting the impairment provision. For the financial assets in the third stage, the interest income shall be calculated according to the book balance minus the amortized cost after the provision for impairment and the effective interest rate.
(2) Listed by category:
Unit: 10000 yuan
Increase in current period decrease in current period
Project balance at the beginning of the year and balance at the end of the period withdrawn others transferred back to others
Bad debt provision for accounts receivable 1083094 403.45 0 45.891118850
Bad debt provision for other receivables 1 Tianjin Lisheng Pharmaceutical Co.Ltd(002393) 400.67254125 01296585
Bad debt provision for receivables financing 9.48 0 0 4.14 0 5.34
Total 2086435 804.12254125 4.14 45.892415969
(3) According to the evaluation of the company, in 2021, the company accrued 7.9998 million yuan of credit impairment loss, including 4.0345 million yuan of bad debt provision for accounts receivable. In this period, Tianjin Huahan sanitary materials Co., Ltd., the original Sun company, is no longer included in the consolidation scope, and the corresponding bad debt provision is transferred out, resulting in a decrease of 458900 yuan in others; The bad debt provision for other receivables was 4.067 million yuan, which was increased by 254125 million yuan due to the fact that the atomic Company Foshan Jinzhi energy saving Film Co., Ltd. was no longer included in the consolidation scope in the current period and the bad debt provision for its current accounts was withdrawn; The bad debt provision of receivables financing is 41400 yuan.
2. Inventory falling price reserves
(1) Withdrawal method of the company's inventory falling price reserves: the company's inventory is measured at the end of the period or at the end of each year by the lower of cost and net realizable value, and the inventory falling price reserves are withdrawn for the difference between the net realizable value of a single inventory item and the inventory cost. Net realizable value refers to the value of the estimated selling price minus the estimated cost to be incurred at the time of completion, the estimated expenses necessary for sales and relevant taxes in the normal process of production and operation.
(2) The amount of inventory falling price reserves withdrawn in the current period is 243927 million yuan.
① Listed by category:
Unit: 10000 yuan
Opening book decrease in current period closing book
Accrued amount of the project in the current period
Balance written off to other balances
Raw materials 113541103579 892.79 0.00127841
In product 284.27 255.36 251.26 0.00 288.37
Finished products 150066107263 863.87 0.00170942
Revolving materials 18.69 75.49 8.15 0.00 86.03
Total 293903243927201607 0.00336223
② The write off amount of inventory falling price reserves in the current period is 201607 million yuan.
3. Provision for impairment of fixed assets and provision for impairment of intangible assets
The amount between the present value of the assets and the fair value of the assets that are expected to be recovered after deducting the present value of the assets that are expected to be disposed of in accordance with the accounting standards for Business Enterprises No. 8. When the recoverable amount is lower than its book value, the company will write down the book value of the asset to the recoverable amount, and the written down amount will be recognized as asset impairment loss and included in the current profit and loss, and the corresponding asset impairment provision will be withdrawn at the same time.
After deliberation at the 17th meeting of the 10th board of directors of the company, it was agreed that the holding subsidiary Foshan yishengda Technology Co., Ltd. (hereinafter referred to as "yishengda company") would carry out liquidation and cancellation. Based on the principle of prudence, the company accrued 101652 million yuan for impairment of fixed assets and 117436 million yuan for impairment of intangible assets in 2021. On December 8, 2021, with the approval of Sanshui district market supervision and Administration Bureau of Foshan City, the registration of yishengda company was cancelled. Yishengda company withdrew from the scope of merger, and the corresponding fixed asset impairment provision of 101652 million yuan and intangible asset impairment provision of 117436 million yuan were transferred out together.
(III) provision for impairment of long-term equity investment
If there are signs of impairment of the company's long-term equity investment on the balance sheet date, the impairment test shall be carried out. If the impairment test results show that the recoverable amount of the asset is lower than its book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss. 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.
Foshan Jinhui hi tech Optoelectronic Materials Co., Ltd. (hereinafter referred to as "Jinhui company") is a joint-stock company of the company, and the company holds 25.515% of its shares. Jinhui company continued to lose money due to its operating performance. In order to revitalize its assets, give full play to its asset benefits and protect the interests of shareholders, Jinhui company publicly listed and transferred some of its assets. The company estimated the recoverable amount of the company's long-term equity investment according to the evaluation results of Jinhui company's assets and the actual transaction situation in the current period. According to the requirements of the accounting standards for business enterprises and other relevant regulations, based on the principle of prudence, the company made an asset impairment provision of 421243 million yuan for its long-term equity investment from January to December 2021. By the end of 2020, the company has accrued a total of 2025719 million yuan of asset impairment reserves for the long-term equity investment of Jinhui company. As of the end of the reporting period, the company has accrued a total impairment provision of 244696200 yuan for the long-term equity investment of Jinhui company.
(IV) provision for impairment of goodwill
At the end of the period, the company recognized the holding subsidiary Dongguan Huagong fosu new materials Co., Ltd. as an asset group as a whole, and calculated its recoverable amount by using the method of the present value of estimated future cash flow. This asset group is consistent with the asset group determined on the purchase date and the goodwill impairment test of previous years. Dongguan Huagong fosu New Material Co., Ltd. prepares the profit forecast and cash flow forecast for the next five years and the sustainable period according to the comprehensive analysis of the contract agreement to be signed, the future strategic planning, the market competition and other factors.
Increase in provision for impairment of goodwill in the current period 43
