Securities code: Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) securities abbreviation: Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) Announcement No.: 2022006 Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816)
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.
1、 Provision for asset impairment this time
1. Reasons and amount for withdrawing asset impairment loss
In accordance with the accounting standards for business enterprises and the accounting policies of Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) (hereinafter referred to as “the company” and “the company”), in order to objectively and fairly reflect the value of the company’s assets, and based on the principle of prudence, the company checked all kinds of assets within the scope of the consolidated statements as of December 31, 2021, judged that there were signs of possible impairment, and determined the asset items for which provision for impairment should be made, The impairment loss accrued accordingly is RMB 160842 million, and the details are as follows:
Unit: RMB 10000
Current amount of the project
Credit impairment loss 78.47
Inventory falling price loss 159251
Total 167098
2. Description of the current provision for asset impairment
(1) Credit impairment loss: the company adopts the simplified model of expected credit loss for receivables that do not contain significant financing components (including the financing components in contracts not exceeding one year according to the accounting standards for Business Enterprises No. 14 – income), that is, the loss reserves are always measured according to the amount of expected credit loss in the whole duration, The increase or reversal amount of the loss reserves thus formed shall be included in the current profits and losses as impairment losses or gains.
For receivables with significant financing components, the company chooses to adopt the simplified model of expected credit loss, that is, it always measures its loss reserves according to the amount of expected credit loss in the whole duration. The company considers all reasonable and based information, including forward-looking information, and estimates the expected credit loss of accounts receivable individually or in combination.
According to the company’s accounting policy on credit impairment, the company accrued 784700 yuan of credit impairment during the reporting period.
(2) Inventory falling price loss: on the balance sheet date, the inventory is measured at the lower of cost and net realizable value, and the inventory falling price reserves are withdrawn according to the difference between the cost of a single inventory / inventory category and the net realizable value.
At the end of the period, the company included some inventory products such as agricultural equipment, diesel engine and gasoline engine. Compared with the actual sales cases of the company, the net realizable value of the inventory after the estimated selling price minus the estimated cost, sales expenses and relevant taxes to be incurred at the time of completion was found to have signs of impairment, so the corresponding inventory falling price reserves of 159251 million yuan were withdrawn according to the calculation results.
2、 The impact of the current provision for asset impairment on the company
The company’s provision for credit impairment and asset impairment decreased by 167098 million yuan in total in the consolidated financial statements of 2021. The above data have been audited by Tianzhi International Certified Public Accountants (special general partnership). 3、 Review procedures for the provision for asset impairment this time
The provision for asset impairment has been deliberated and approved at the 25th meeting of the 8th board of directors and the 21st Meeting of the 8th board of supervisors, and the independent directors of the company have expressed their independent opinions.
4、 Explanation of the board of directors on the rationality of withdrawing asset impairment
The company’s provision for asset impairment this time complies with the accounting standards for business enterprises and other relevant provisions, fairly reflects the company’s financial status, asset value and operating results, and does not harm the interests of the company and shareholders. 5、 Opinions of independent directors
The company’s provision for impairment of relevant assets in 2021 complies with the accounting standards for business enterprises and relevant accounting policies of the company. The basis for provision is reasonable and sufficient, and there is no damage to the interests of the company and shareholders. The decision-making procedure for withdrawing the provision for asset impairment is compliant and effective, and the proposal for withdrawing the provision for asset impairment is agreed.
6、 Opinions of the board of supervisors
According to the relevant provisions of the accounting standards for business enterprises and the actual situation of the company’s assets, the company calculates and withdraws the provision for asset impairment. The basis is sufficient and in line with the principle of prudence. The decision-making procedures are legal and truly and fairly reflect the company’s asset status and operating results, so as to make the company’s accounting information more accurate and in line with the relevant provisions of the accounting standards for business enterprises.
7、 Documents for future reference
1. Resolutions of the 25th meeting of the 8th board of directors;
2. Resolutions of the 21st Meeting of the 8th board of supervisors;
3. Independent opinions of independent directors on matters related to the 25th meeting of the eighth board of directors.
Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) board of directors March 29, 2002
