Announcement No.: Xinjiang Goldwind Science And Technology Co.Ltd(002202)
With regard to the 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.
Xinjiang Goldwind Science And Technology Co.Ltd(002202) (hereinafter referred to as “the company” or ” Xinjiang Goldwind Science And Technology Co.Ltd(002202) “) held the 25th meeting of the seventh board of directors on March 25, 2022, deliberated and adopted the proposal on the provision for credit impairment and asset impairment in Xinjiang Goldwind Science And Technology Co.Ltd(002202) 2021. The specific contents are hereby announced as follows:
1、 Overview of the provision for credit impairment and asset impairment this time
In accordance with the accounting standards for business enterprises, the Listing Rules of Shenzhen Stock Exchange and the relevant provisions of the company’s accounting policies, in order to fairly reflect the company’s financial status and operating results as of December 31, 2021, the company and its subsidiaries conducted impairment tests on various assets as of December 31, 2021, and accrued credit impairment reserves and asset impairment reserves for some assets, totaling RMB 1757532300.
The details are as follows:
Unit: RMB 10000
Amount incurred in 2021
Provision for credit impairment: 6429378
Including: accounts receivable 5525385
Other receivables 963992
Debt investment -5.03
Long term receivables -663.61
Other non current assets 68.65
Provision for asset impairment: 11145945
Including: inventory 1185566
Development expenditure 3247482
Intangible assets 2877627
Fixed assets 1093091
Construction in progress 338826
Goodwill 1756817
Contract assets 353.49
Other non current assets 611187
Total 17575323
The reporting period from January 1, 2021 to December 31, 2021 is the reporting period in which the provision for credit impairment and the provision for asset impairment are accrued.
2、 Description of this credit impairment and provision for asset impairment
(I) provision for credit impairment
According to the method specified in the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments, the expected credit loss is calculated on a single or combined basis based on the credit risk characteristics of accounts receivable, other accounts receivable, debt investment, long-term accounts receivable and other non current assets.
Single withdrawal: when there is evidence that a single receivable is impaired, the impairment test shall be conducted separately, and the impairment loss shall be withdrawn according to the difference between the present value of its future cash flow and its book value.
Combined withdrawal: the company determines the expected credit loss rate within 12 months and the whole duration and withdraws the expected credit loss according to the historical credit loss, combined with the current situation, the prediction of future economic conditions and the adjustment of comprehensive consideration of forward-looking factors, and considering the credit risk characteristics of different customers. When based on the combination of financial instruments, the company divides the financial instruments into different combinations based on the common risk characteristics.
1.1 provision for impairment of accounts receivable
Several customers of the company have major financial difficulties due to various reasons, major adverse changes in operation or financial status, default or default in interest or principal, and the company expects that the relevant receivables cannot be fully recovered. Therefore, according to the expected credit loss model, the expected credit loss of receivables is evaluated on a single basis, and the impairment provision is RMB 525768800; The company strengthened the management of long-term accounts receivable, recovered the arrears of several customers in the current year, and reversed the impairment provision of RMB 27.958 million on a single basis; According to the expected credit loss model, the company assesses the expected credit loss of accounts receivable on the basis of portfolio, accrues the impairment loss of RMB 547277 million, and recognizes the impairment loss of total receivables of RMB 5525385 million;
1.2 provision for impairment of other receivables
The company strengthened the management of other receivables with long aging, recovered the arrears of several customers in this year, and reversed the impairment provision of RMB 133500 on a single basis; According to the expected credit loss model, the company evaluates the expected credit loss of other receivables on the basis of portfolio, recognizes the impairment loss of RMB 965327 million, and accrues the impairment loss of other receivables in total of RMB 963992 million.
1.3 debt investment, long-term receivables and other non current assets
According to the expected credit loss model, the company assesses the expected credit loss of debt investment, long-term receivables and other non current assets on a portfolio basis. Due to the due payment of bonds, the provision for credit impairment of debt investment is 50300 yuan, and the provision for credit impairment of long-term receivables is 6636100 Yuan due to the recovery of finance lease payments, The provision for credit impairment of other non current assets is RMB 686500.
To sum up, in 2021, the company made a total credit impairment loss of 6429378 million yuan for accounts receivable, other receivables, debt investment, long-term receivables and other non current assets.
(II) provision for asset impairment
1. Inventory falling price reserves
According to the relevant provisions of accounting standards for Business Enterprises No. 1 – inventory, the company’s inventory is measured at the lower of cost and net realizable value. When the provision for inventory falling price is made, raw materials and inventory goods are withdrawn according to a single inventory item. 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 it is difficult to measure separately from other items, the inventory falling price reserves shall 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.
In 2021, the company conducted an impairment test on the inventory, and withdrawn the inventory falling price reserve of RMB 1185566 million according to the test results.
2. Provision for impairment of long-term assets
According to the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment, an enterprise shall judge whether there are signs of possible value reduction in long-term equity investment, investment real estate measured by cost method, intangible assets, fixed assets, construction in progress and other assets on the balance sheet date. If there are signs of impairment, estimate its recoverable amount and conduct impairment test, The provision for impairment of long-term assets shall be withdrawn according to the lower of the book value and recoverable amount of assets. Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.
The recoverable amount is determined according to 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 company estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs.
Details of provision for impairment of long-term assets in 2021 are as follows:
Unit: 10000 yuan
Provision for impairment of long-term assets incurred in 2021
Development expenditure 3247482
Intangible assets 2877627
Fixed assets 1093091
Construction in progress 338826
Total 7557026
2.1 technological development and market environment have greatly shortened the product replacement cycle. In order to meet the market demand, the company has launched new product development and product slimming plan, and conducted impairment test on development expenditure and some intangible assets with signs of impairment. The main parameters used by the company in estimating the recoverable amount include the predicted order volume, sales price and predicted marginal contribution. The impairment loss is accrued according to the difference between the recoverable amount and the book value, including:
(1) An impairment test was conducted on the development expenditure with a book value of RMB 3247482 million, and its recoverable amount was determined according to its use value. According to the test results, the impairment of relevant assets was reduced to zero, and the provision for asset impairment was RMB 3247482 million.
(2) An impairment test was conducted on intangible assets with a book value of RMB 258519700, and its recoverable amount was determined according to its use value. According to the test results, the relevant assets were impaired to its recoverable amount of RMB 310074 million, and the provision for asset impairment was RMB 2275116 million.
2.2 in 2021, due to the change of income tax rate in an overseas country and other reasons, the wind farm projects held by the company in that country showed signs of impairment. The company hired an independent appraiser to conduct impairment test on the intangible assets formed during the acquisition of wind farm projects in that country and the fixed assets related to wind farm projects in that country. The main parameters used in estimating the recoverable amount include the agreed electricity price and the weighted average cost of capital. According to the difference between the assessed recoverable amount and the book value, the company has made an impairment provision of RMB 435155 million for intangible assets – wind farm project and RMB 1093091 million for fixed assets.
2.3 in 2021, the company conducted impairment test on individual intangible assets and wind farm projects under construction with signs of impairment, and accrued asset impairment reserves of 167356 million yuan and 338826 million yuan respectively according to the difference between recoverable amount and book value.
To sum up, the impairment loss of the company’s intangible assets and development in progress is RMB 5.71 million, and the total impairment loss of the company’s fixed assets is RMB 5.71 million.
3. Provision for impairment of goodwill
According to the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment, the company conducts an impairment test on the goodwill formed by the merger at the end of each year. The company uses the recoverable value to test the consolidated goodwill, that is, the amount discounted by an appropriate discount rate is selected according to the expected future recoverable cash, or the net amount of the recoverable amount minus the disposal expenses is used as the valuation calculation.
In 2021, the company hired an independent appraiser to conduct impairment test on the goodwill formed during the acquisition of vensys energy AG, a German subsidiary, in accordance with the relevant provisions of the accounting standards for business enterprises. The recoverable amount of vensys energy Ag in 2021 is determined according to the present value of the estimated future cash flow, and its estimated future cash flow
