Securities abbreviation: ST Lvjing securities code: Lvjing Holding Co.Ltd(000502) Announcement No.: 2022019 Lvjing Holding Co.Ltd(000502)
Announcement on provision for impairment
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.
1、 Overview of the provision for asset impairment this time
According to the Listing Rules of Shenzhen Stock Exchange, accounting standards for business enterprises and the company’s accounting policies and other relevant provisions, Lvjing Holding Co.Ltd(000502) (hereinafter referred to as “the company”) conducted impairment test on the inventory assets of Foshan Ruifeng Investment Co., Ltd. (hereinafter referred to as “Foshan Ruifeng”), a holding subsidiary, as of December 31, 2021. After testing, the company has made provision for impairment of inventories with possible asset impairment losses of Foshan Ruifeng, totaling 5.4915 million yuan.
Details of assets impairment loss of Foshan Ruifeng in 2021 are as follows:
Unit: RMB
Year beginning balance of the project increase in the current year other changes year-end balance write off
Inventory falling price reserves – 549145590 — 549145590
Total – 549145590 — 549145590
2、 The impact on the company of the accrued asset impairment loss
Foshan Ruifeng accrued a total asset impairment loss of 5.4915 million yuan in 2021, resulting in a decrease of 5.4915 million yuan in the company’s total profit in 2021, a decrease of 3.6381 million yuan in net profit attributable to the owner of the parent company and a decrease of 3.6381 million yuan in owner’s equity attributable to the parent company.
The company’s 2021 annual performance forecast (Announcement No.: 2022004) disclosed on January 29, 2022 has considered the impact of Foshan Ruifeng inventory impairment provision.
Securities abbreviation: ST Lvjing securities code: Lvjing Holding Co.Ltd(000502) Announcement No.: 2022019 III. withdrawal method of inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory falling price reserves shall be withdrawn. Inventory falling price reserves are usually withdrawn according to the difference between the cost of a single inventory item and its net realizable value. For the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; 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 difficult to be measured separately from other items, the inventory falling price reserves can be accrued jointly.
The company conducted impairment test on the inventory of Foshan Ruifeng as of December 31, 2021. According to the appraisal report issued by Zhongwei Zhengxin (Beijing) Assets Appraisal Co., Ltd. on March 15, 2022 (Zhongwei Zhengxin pingbao Zi [2022] No. 17004), the net realizable value of inventory assets of 277 car parking spaces located in Yuhui garden of Foshan Ruifeng was tested and evaluated for impairment, of which the net book value of inventory assets of parking spaces was 160175 million yuan, the net realizable value after evaluation was 10.526 million yuan, and the estimated impairment was 5.4915 million yuan, The impairment rate was 34.28%.
4、 Statement of the board of directors on the reasonableness of the provision for impairment of assets
The board of directors of the company believes that the provision for inventory impairment this time complies with the provisions of the Listing Rules of Shenzhen Stock Exchange, accounting standards for business enterprises, relevant accounting policies of the company and the actual situation of the company’s assets, complies with the principle of prudence, and can fairly, objectively and truly reflect the asset status of subsidiaries at the end of the reporting period. The provision for asset impairment this time is reasonable.
It is hereby announced.
Lvjing Holding Co.Ltd(000502) board of directors
March 25, 2002
