Securities code: Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) securities abbreviation: Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) Announcement No.: pro 2022021 Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526)
Announcement on the provision for credit and asset impairment in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
According to the relevant requirements of the Listing Rules of Shanghai Stock Exchange, Zhejiang Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) Technology Co., Ltd. (hereinafter referred to as "the company" or "the company") conducted a comprehensive inventory and impairment test of various assets in order to objectively and fairly reflect the company's financial status, asset value and operating results in 2021 in accordance with the accounting standards for business enterprises and relevant accounting policies, Based on the principle of prudence, credit and asset impairment reserves are withdrawn for relevant assets that may have credit and asset impairment losses within the scope of consolidated statements as of December 31, 2021. The specific matters are hereby announced as follows:
1、 Overview of provision for impairment this time
The company has accrued credit impairment loss of 5102089369 yuan and asset impairment loss of 7627130233 yuan in the current period, as shown in the table below.
Unit: RMB
Amount of provision for impairment of the project (yuan)
Bad debt loss of notes receivable -4944196
Bad debt loss of accounts receivable 4752573899 credit impairment loss
Bad debt loss of long-term receivables -179209954
Bad debt loss of other receivables 533669620
Inventory falling price loss 1831244237
Asset impairment loss long term equity investment impairment loss 437167369
Bad debt of contract assets 5358718627
Total 12729219602
2、 Specific description of the current provision for impairment
(I) provision for credit impairment
The provision for credit impairment this time mainly includes bad debt loss of notes receivable, bad debt loss of accounts receivable and long-term loss
Bad debt loss of receivables and bad debt loss of other receivables. For receivables, whether or not including significant financing
The company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
Bad debts accrued, recovered or reversed for notes receivable, accounts receivable, long-term receivables and other receivables
Preparation:
Unit: RMB
Category opening balance current period change amount closing balance withdrawal or reversal write off others
Accrued expected credit loss by portfolio: notes receivable with loss of 76518647 -494419671574451
Including: commercial acceptance bill 76518647 -494419671574451
The expected credit loss accrued by portfolio is 10434669667 -235810898 -125488973 and 10073369796
Including: aging combination 10434669667 -235810898 -12548897310073369796
Long term receivables with expected credit losses of 3565785617, 5867634039 -879249242 -148174234 and 8405996180 withdrawn by individual and 179209954 -179209954 withdrawn by portfolio, including: aging portfolio
Other receivables with expected credit loss of 2201654752 -555131324 -44997601642023668 withdrawn by portfolio
Including: aging combination 2201654752 -555131324 -44997601642023668
Other receivables with expected credit loss of 5996339891, 1088800944 and 7085140835 withdrawn individually
Note: (1) other decreases in bad debt provision are due to the transfer of shares of Hangzhou Feida Material Transportation Engineering Co., Ltd
Transfer out of the right;
(2) Total accumulated bad debt of accounts receivable of Henan Yuneng Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) Co., Ltd. in the current period
4518469430 yuan.
(II) provision for asset impairment
On the balance sheet date, after the company has conducted a comprehensive inventory of inventories, it shall be calculated according to the lower of the cost and net realizable value of inventories
Withdraw or adjust inventory falling price reserves. If the factors affecting the previous write down of inventory value have disappeared, the written down amount
The amount shall be restored and reversed within the amount of inventory falling price reserves that have been withdrawn, and the reversed amount shall be included in the current loss
Benefits.
Unit: RMB
Category opening balance current period change amount closing balance withdrawal or reversal write off others
Inventory impairment provision 223500422581831244237 -434324899219838037503
Note: other changes in the provision for inventory impairment in the current period are the amount of inventory write off.
On the balance sheet date, the company judges whether there is any sign of possible impairment of long-term equity investment
If there are signs of value, the company will estimate its recoverable amount and conduct impairment test. The recoverable amount is based on the public
The higher one between the net amount of the allowable value minus the disposal expenses and the present value of the expected future cash flow of the asset
determine. When the recoverable amount of long-term equity investment is lower than its book value, the company will write down its book value
To the recoverable amount, the amount written down shall be included in the current profit and loss, and the corresponding asset impairment provision shall be withdrawn at the same time.
Unit: RMB
Current change amount
Category: withdrawal and recovery of opening balance or write off of other closing balances
turn back
Provision for impairment of long-term equity investment 437167369
On the balance sheet date, the company measures the contract according to the amount equivalent to the expected credit loss within the whole duration
The specific accounting treatment method of asset impairment provision is consistent with that of accounts receivable.
Unit: RMB
Current change amount
Category: withdrawal and recovery of opening balance or write off of other closing balances
turn back
Provision for impairment of contract assets 118837 Guangdong Kitech New Material Holding Co.Ltd(300995) 35871862717242448726
3、 Impact of the current provision for impairment on the company
The provision for impairment in the current period reduced the total profit of the company by 12729219602 yuan and the profit decreased
All have been reflected in the financial report of the company in 2021.
4、 Review procedures for the performance of the provision for impairment this time
The provision for credit and asset impairment has been deliberated and approved at the 7th Meeting of the 8th board of directors and the 6th meeting of the 8th board of supervisors.
(I) opinions of the board of directors
In strict accordance with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, and based on the principle of prudence, the company made this provision for credit and asset impairment on the basis of comprehensive inventory and impairment test of various assets of the company. The basis is sufficient and can objectively and fairly reflect the company's financial situation, asset value and operating results in 2021. We agree to this proposal for the provision for credit and asset impairment.
(II) opinions of the board of supervisors
The provision for credit and asset impairment this time complies with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies. The basis is sufficient, the approval procedure is legal, and fairly reflects the company's financial situation, asset value and operating results in 2021. There is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. We agree to the proposal for credit and asset impairment this time.
It is hereby announced.
Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) board of directors
April 1, 2022
