Guangdong Dazhi Environmental Protection Technology Incorporated Company(300530) : Announcement on the provision for asset impairment in 2021

1. Securities code: Guangdong Dazhi Environmental Protection Technology Incorporated Company(300530) securities abbreviation: Guangdong Dazhi Environmental Protection Technology Incorporated Company(300530) Announcement No.: 2022053 announcement of Hunan Lingpai Dazhi Technology Co., Ltd. on the provision for asset impairment in 2021. The company and all members of the board of directors guarantee that the content of information disclosure is true, accurate and complete without false records, misleading statements or major omissions. Hunan Lingpai Dazhi Technology Co., Ltd. (hereinafter referred to as "the company") fully evaluated and analyzed the possibility of impairment of various assets such as accounts receivable, contract assets, inventories, fixed assets, long-term equity investment and intangible assets on December 31, 2021 in accordance with the accounting standards for business enterprises and the company's accounting policies. After analysis, the company has made provision for impairment of notes receivable, accounts receivable, other accounts receivable, inventory and fixed assets totaling 244445 million yuan. The relevant information is hereby announced as follows: I. overview of the company's provision for asset impairment. According to the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, the company has made a statement on the notes receivable, accounts receivable, other accounts receivable, inventory The impairment test of fixed assets, intangible assets and other assets was conducted, the signs of possible impairment were judged, and the asset items requiring provision for asset impairment were determined. In 2021, the company made provision for impairment of notes receivable of 4700 yuan, provision for bad debts of accounts receivable of 1670200 yuan, provision for bad debts of other receivables of 188800 yuan, provision for inventory depreciation of 221215 million yuan and provision for impairment of fixed assets of 459400 yuan. The above five items made provision for impairment of assets of 244445 million yuan in total. The provision for asset impairment this time is implemented in accordance with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, and does not need to be submitted to the board of directors of the company for deliberation. 2、 Recognition standard and method of withdrawing the provision for asset impairment (I) recognition standard and method of withdrawing the provision for impairment of notes receivable on the balance sheet date, the company measures the credit loss of notes receivable according to the present value of the difference between the contract cash flow to be received and the expected cash flow to be received. When the information of expected credit loss cannot be assessed at a reasonable cost for a single bill receivable, the company divides the bill receivable into several combinations according to the characteristics of credit risk, and estimates the expected credit loss on the basis of combination with reference to historical credit loss experience, current situation and forward-looking information, The basis for determining the portfolio is as follows: 1. The basis for determining the portfolio of the project is the method of measuring the expected credit loss. The types of bank acceptance bills receivable refer to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, through the default risk exposure and the expected credit loss rate of the whole deposit period, Calculation of expected credit loss commercial acceptance bills receivable (II) recognition standard and withdrawal method of impairment provision for accounts receivable on the balance sheet date, the company measures the credit loss of accounts receivable according to the present value of the difference between the contract cash flow receivable and the expected cash flow receivable. When individual accounts receivable cannot evaluate the information of expected credit loss at a reasonable cost, the company divides the accounts receivable into several combinations according to the characteristics of credit risk, and estimates the expected credit loss on the basis of combination with reference to the experience of historical credit loss, combined with the current situation and considering forward-looking information, The basis for determining the portfolio is as follows: the basis for determining the portfolio of the project the method for measuring the expected credit loss accounts receivable - aging portfolio aging refers to the experience of historical credit loss, and combines the current situation and the prediction of future economic conditions to prepare the comparison table between the aging of accounts receivable and the expected credit loss rate in the whole duration, Calculate the expected credit loss accounts receivable - refer to the historical credit loss experience, combined with the current situation and the prediction of the future economic situation, calculate the expected credit loss through the default risk exposure and the expected credit loss rate throughout the duration (III) the recognition standard and withdrawal method for the provision for impairment of other receivables on the balance sheet date, The company measures the credit loss of other receivables according to the present value of the difference between the contract cash flow receivable and the expected cash flow receivable. When it is impossible to evaluate the expected credit loss information of individual other receivables at a reasonable cost, the company divides other receivables into several combinations according to the characteristics of credit risk, and estimates the expected credit loss on the basis of combination with reference to the experience of historical credit loss, combined with the current situation and considering forward-looking information, The basis for determining the portfolio is as follows: the basis for determining the portfolio of the project is the method of measuring the expected credit loss. Other receivables - aging portfolio. The nature of the fund refers to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, and calculates the expected credit loss other receivables - withholding and payment of employee housing provident fund Personal income tax, deposit, etc. are included in the debt portfolio of related parties within the consolidation scope. 1 (IV) recognition criteria and withdrawal methods for the provision for impairment of inventories. On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and the provision for inventory depreciation is withdrawn according to the difference between the cost of a single inventory and the net realizable value. The basis for determining the net realizable value is as follows: the specific basis for determining the net realizable value of the project is the reason for the reversal of the inventory falling price reserve in the current period, the reason for the reversal of the inventory falling price reserve in the current period, the estimated selling price of raw materials and related finished products minus the estimated cost to be incurred until completion The estimated sales expenses and the amount after relevant taxes determine the net realizable value. The net realizable value of the inventory with provision for inventory depreciation in the previous period increases. In the current period, the amount after deducting the estimated sales expenses and relevant taxes from the estimated selling price of the inventory consumption / sold inventory goods with provision for inventory depreciation at the beginning of the period determines the net realizable value. The net realizable value of the inventory with provision for inventory depreciation in the previous period increases in the current period The estimated selling price of the self-made semi-finished products sold by the inventory with provision for inventory falling price at the beginning of the period minus the estimated cost to be incurred until completion The estimated sales expenses and the amount after relevant taxes determine the net realizable value. The net realizable value of the inventory for which the provision for inventory falling price has been made in the previous period has increased. In the current period, the estimated selling price of the inventory consumption / sold entrusted processing materials for which the provision for inventory falling price has been made at the beginning of the period has been reduced to the estimated cost of completion For the impairment of inventories and the impairment of the company's net realizable value of fixed assets at the beginning of the period after the provision for impairment of inventories is made (V) for the impairment of inventories and the impairment of fixed assets at the beginning of the period, the company shall determine the impairment amount of fixed assets before the provision for impairment of inventories is made. 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. The provision for asset impairment is calculated and recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group is determined by the asset group to which the asset belongs. Asset group is the smallest asset portfolio that can generate cash inflow independently. When the recoverable amount of an asset or asset group is lower than its book value, the company shall write down its book value to the recoverable amount, and the written down amount shall be included in the current profit and loss, and the corresponding asset impairment reserves shall be accrued at the same time. 3、 The impact of the provision for asset impairment on the company the provision for asset impairment in the reporting period totaled 244445 million yuan, resulting in a decrease of 244445 million yuan in the total profit of 2021. IV. description of the rationality of the provision for asset impairment this time: the provision for asset impairment this time complies with the accounting standards for business enterprises and relevant accounting policies of the company and the actual situation of the company. After the provision for asset impairment is made this time, the company's financial statements can fairly reflect the company's financial position and operating results as of December 31, 2021. It is hereby announced. Board of directors of Hunan Lingpai Dazhi Technology Co., Ltd. March 31, 2012