Securities code: Guangdong Chaohua Technology Co.Ltd(002288) securities abbreviation: Guangdong Chaohua Technology Co.Ltd(002288) Announcement No.: 2022021 Guangdong Chaohua Technology Co.Ltd(002288)
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.
Guangdong Chaohua Technology Co.Ltd(002288) (hereinafter referred to as “the company”) deliberated and adopted the proposal on the provision for asset impairment in 2021 at the 10th meeting of the 6th board of directors and the 9th meeting of the 6th board of supervisors held on March 29, 2022. According to relevant regulations, the specific conditions of the company’s provision for asset impairment in 2021 are announced as follows:
1、 Summary of provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
In accordance with the requirements of the accounting standards for business enterprises and the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, and in order to more truly and accurately reflect the asset status and financial status of the company as of December 31, 2021, the company and its subsidiaries conducted a comprehensive inventory of accounts receivable, other accounts receivable, inventory and other assets at the end of 2021. Based on the inventory, the recovery possibility of accounts receivable and other accounts receivable and the net realizable value of various inventories are fully analyzed and evaluated, and the impairment provision is made for the assets that may have asset impairment losses.
2. Asset scope, total amount and reporting period to be included in the provision for asset impairment this time
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test of assets with possible signs of impairment at the end of 2021, including inventories, accounts receivable and other receivables, the company accrued 384537 million yuan of asset impairment reserves in 2021, as shown in the following table:
Asset Name: provision for asset impairment in 2021 (10000 yuan)
Accounts receivable 197656
Other receivables 156.20
Goodwill 373.80
Inventory 133881
Total 384537
3. Approval procedures for the provision for asset impairment of the company this time
The provision for asset impairment has been deliberated and approved at the 10th meeting of the 6th board of directors and the 9th meeting of the 6th board of supervisors. The independent directors expressed independent opinions on the matter and agreed to the provision for asset impairment.
2、 The impact of the current provision for asset impairment on the company
In 2021, the company made provision for impairment of various assets totaling 384537 million yuan, which will reduce the net profit of 384537 million yuan in 2021 and the owner’s equity by 384537 million yuan at the end of 2021.
The provision for asset impairment this time does not involve profit manipulation.
3、 The recognition standard and withdrawal method of the provision for asset impairment this time
1. Bad debt provision for accounts receivable and other receivables: for accounts receivable and contract assets without major financing components, the company measures the loss provision according to the amount equivalent to the expected credit loss in the whole duration. For receivables and lease receivables with significant financing components, the company chooses to always measure the loss provision according to the amount equivalent to the expected credit loss during the duration. In addition to the accounts receivable that are individually assessed for credit risk, they are divided into different combinations based on their credit risk characteristics. The methods of withdrawing bad debt reserves according to the aging combination are: 5% within one year, 20% from one to two years, 50% from two to three years and 100% over three years.
2. Inventory depreciation: according to the inventory accounting policy, the inventory depreciation reserves shall be accrued for the inventory whose cost is higher than the net realizable value, obsolete and unsalable. The impairment of inventories to net realizable value is based on the evaluation of the marketability and net realizable value of inventories. The appraisal of inventory impairment requires the management to make judgment and estimation on the basis of obtaining conclusive evidence and considering the purpose of holding inventory, the impact of events after the balance sheet date and other factors. The difference between the actual result and the original estimate will affect the book value of inventory and the withdrawal or reversal of inventory falling price reserves during the period when the estimate is changed.
3. Impairment of Goodwill: the recoverable amount of the asset group portfolio where the goodwill belongs shall be determined according to the higher one between the net amount of the fair value minus the disposal expenses and the present value of the estimated future cash flow. On the premise that it is believed that the net amount of the fair value of the asset minus the disposal expenses or the present value of the estimated future cash flow has exceeded the corresponding book value and passed the impairment test, it is not necessary to calculate another value.
4、 Explanation of the board of directors on the reasonableness of the provision for impairment of assets in 2021
The board of directors of the company believes that the provision for asset impairment this time complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company, reflects the principle of prudence in accounting treatment, fully and fairly reflects the asset status of the company as of December 31, 2021, and makes the accounting information of the company more authentic, reliable and reasonable. Therefore, it agrees to the provision for asset impairment this time.
5、 Opinions of independent directors
The independent directors expressed the following independent opinions on the company’s provision for asset impairment in 2021: the company’s provision for asset impairment met the requirements of the accounting standards for business enterprises and the company’s accounting policies, and the basis was sufficient and reasonable to objectively and fairly reflect the company’s asset status as of December 31, 2021; The decision-making procedure of the board of directors to consider the matter is legal and compliant, and there is no damage to the interests of the company and shareholders, especially minority shareholders. Therefore, the company agrees to withdraw the provision for asset impairment this time.
6、 Opinions of the board of supervisors
After review, the board of supervisors believes that the company’s provision for asset impairment in 2021 is in line with the relevant provisions of the accounting standards for business enterprises, has sufficient basis, legal decision-making procedures, fairly reflects the company’s asset status as of December 31, 2021, and is conducive to providing investors with more reliable financial information. Therefore, the board of supervisors agrees to the provision for asset impairment this time.
7、 Documents for future reference
1. Resolution of the 10th meeting of the 6th board of directors signed and sealed by the attending directors;
2. Resolution of the 9th meeting of the 6th board of supervisors signed and sealed by the supervisors attending the meeting;
3. Independent opinions of independent directors on matters related to the 10th meeting of the 6th board of directors signed by independent directors.
It is hereby announced.
Guangdong Chaohua Technology Co.Ltd(002288) board of directors
March 30, 2002
