Securities code: Jiangsu Gian Technology Co.Ltd(300709) securities abbreviation: Jiangsu Gian Technology Co.Ltd(300709) Announcement No.: 2022034 Jiangsu Gian Technology Co.Ltd(300709)
Announcement on the provision for credit impairment and asset 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.
Jiangsu Gian Technology Co.Ltd(300709) (hereinafter referred to as “the company”) convened the 9th meeting of the 3rd board of directors and the 7th Meeting of the 3rd board of supervisors on March 31, 2022, and deliberated and adopted the proposal on the provision for credit impairment and asset impairment. The details of the provision for credit impairment and asset impairment are hereby announced as follows:
1、 Summary of provision for credit impairment and asset impairment
1. Reasons for withdrawing provision for credit impairment and asset impairment
According to the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, in order to truly and accurately reflect the company’s financial position as of December 31, 2021 and the operating results of 2021, the company and its subsidiaries have conducted a comprehensive inventory of relevant assets and asset impairment test. According to the test results, based on the principle of prudence, The company plans to make provision for credit impairment and asset impairment for relevant assets with signs of impairment as of December 31, 2021.
2. Scope and amount of provision for credit impairment and asset impairment
After comprehensive inventory and asset impairment test, the scope of credit impairment and asset impairment provision made by the company and its subsidiaries in 2021 includes accounts receivable, other accounts receivable, inventory, intangible assets and goodwill. The company plans to make credit impairment and asset impairment provision for relevant assets within the scope of consolidated financial statements in 2021, with a total amount of 16744565688 yuan. The above provision for impairment has been audited by zhongxinghua Certified Public Accountants (special general partnership), the audit institution of the company. The reporting period to be included in the provision for credit impairment and asset impairment is January 1, 2021 to December 31, 2021.
The details of provision for credit impairment are as follows:
Unit: RMB
Current change amount
The opening balance of the project is withdrawn or reversed at the end of the period, and other items are written off
Bad accounts receivable
Account preparation 295179224478360472731760513177491785206385444565891468
Other receivables——
Bad debt reserves 86186060576861086089400045 Anhui Korrun Co.Ltd(300577) 128278745
The details of the provision for asset impairment are as follows:
Unit: RMB
Increase in current period decrease in current period
The opening balance of the project and the ending balance are withdrawn and other reversed or written off
Inventory depreciation——
Preparation 679482236769277308114784526938616964589908701989
Intangible assets————————
Provision for impairment 578038660
Goodwill impairment————————
Prepare 83975053828397505382
2、 The impact of the provision for credit impairment and asset impairment on the company
The credit impairment and asset deduction of accounts receivable, other accounts receivable, inventory, intangible assets and goodwill are withdrawn this time
The total amount of provision for value is 16744565688 yuan, and the amount of inventory falling price written off is 3861696458 yuan, which will reduce the total amount of public debt
The net profit of the company is 12882869230 yuan, which affects the owner’s equity of the company.
3、 Details of the provision for credit impairment and asset impairment this time
1. The provision for credit impairment withdrawn this time is accounts receivable and other receivables
The company’s provision for credit impairment is as follows:
(1) Accounts receivable
For receivables without major financing components, the company measures the loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
For receivables with significant financing components, the company measures the loss reserves based on the amount of expected credit loss in the next 12 months or the whole duration according to whether its credit risk has increased significantly since initial recognition.
In addition to the accounts receivable that are individually assessed for credit risk, based on their credit risk characteristics, they are divided into:
Basis for determining project portfolio
The estimated loss rate of overdue accounts receivable or overdue accounts receivable in the overdue portfolio accounting period shall be withdrawn in proportion
(2) Other receivables
The company adopts the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measure the impairment loss according to whether the credit risk of other receivables has increased significantly since the initial recognition. In addition to other receivables that individually assess credit risk, based on their credit risk characteristics, they are divided into:
Basis for determining project portfolio
Aging portfolio this portfolio takes the aging of other receivables as the credit risk feature
During the reporting period, the company accrued bad debt provision of accounts receivable of 783604727 yuan, recovered accounts receivable of 317605131 yuan, cancelled accounts receivable of 7749178 yuan, and other changes of 520638544 yuan, which is the balance of bad debt provision of accounts receivable of Shenzhen antexin Technology Co., Ltd. newly included in the consolidation scope on the purchase date. During the reporting period, the company accrued bad debt provision for other receivables of 57686108 yuan, wrote off other receivables of 60894000 yuan, and other changes of 45 Anhui Korrun Co.Ltd(300577) yuan, which is the balance of bad debt provision for other receivables of Shenzhen antxin Technology Co., Ltd. newly included in the consolidation scope on the purchase date.
2. The provision for asset impairment withdrawn this time includes inventories, intangible assets and goodwill
The company’s provision for asset impairment is as follows:
(1) Stock
After a comprehensive inventory of inventories at the end of the period, the inventory falling price reserves shall be withdrawn or adjusted according to the lower of the inventory cost and net realizable value. The net realizable value of finished products, goods in stock, materials for sale and other goods inventories directly for sale shall be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes in the normal process of production and operation; For the inventory of materials that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes; The net realizable value of inventories held for the execution of sales contracts or labor contracts is calculated based on the contract price. If the quantity of inventories held is more than the quantity ordered in the sales contract, the net realizable value of excess inventories is calculated based on the general sales price.
At the end of the period, the inventory falling price reserves are accrued according to a single inventory item; However, for the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; If the inventories are related to the product series produced and sold in the same region, have the same or similar end use or purpose, and are difficult to be measured separately from other items, the inventory falling price reserves shall be accrued jointly.
If the factors affecting the previous write down of inventory value have disappeared, the amount of write down shall be restored and reversed within the amount of inventory falling price reserve originally withdrawn, and the reversed amount shall be included in the current profit and loss.
During the reporting period, the company accrued inventory falling price reserves of 6927730811 yuan and inventory falling price losses of 6927730811 yuan.
(2) Goodwill and intangible assets
The company judges whether there is any sign of possible impairment of long-term assets on the balance sheet date. If there are signs of impairment of long-term assets, the recoverable amount shall be estimated on the basis of single assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs.
The estimation of the recoverable amount of an asset is determined according to the higher one between the net amount of its fair value minus the disposal expenses and the present value of the expected future cash flow of the asset.
If the measurement results of recoverable amount show that the recoverable amount of long-term assets is lower than its book value, the book value of long-term assets shall be written down to the recoverable amount, and the written down amount shall be recognized as asset impairment loss and included in the current profit and loss, and the corresponding asset impairment provision shall be withdrawn at the same time. Once the asset impairment loss is recognized, it shall not be reversed in subsequent accounting periods.
After the asset impairment loss is recognized, the depreciation or amortization expenses of the impaired asset shall be adjusted accordingly in the future period, so that the adjusted book value of the asset (deducting the estimated net residual value) can be systematically apportioned within the remaining service life of the asset.
For goodwill formed by business combination and intangible assets with uncertain service life, impairment test shall be conducted every year regardless of whether there are signs of impairment.
The goodwill formed by business combination shall be subject to impairment test every year regardless of whether there are signs of impairment. In the impairment test of goodwill, the book value of goodwill shall be allocated to the asset group or combination of asset groups expected to benefit from the synergy of business combination. When conducting the impairment test on the relevant asset group or combination of asset groups containing goodwill, if there are signs of impairment in the asset group or combination of asset groups related to goodwill, first conduct the impairment test on the asset group or combination of asset groups not containing goodwill, calculate the recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss. Then carry out impairment test on the asset group or combination of asset groups containing goodwill, and compare the book value of these relevant asset groups or combination of asset groups (including the book value of the apportioned goodwill) with their recoverable amount. If the recoverable amount of relevant asset groups or combination of asset groups is lower than its book value, the impairment loss of goodwill shall be recognized.
1) Goodwill
According to the net asset evaluation report of Jiangsu Gian Technology Co.Ltd(300709) proposed impairment test involving the fair value of the recoverable value of the assets declared by Shenzhen antxin Technology Co., Ltd minus the disposal expenses issued by Jiangsu Zhongqi huazhongtian asset evaluation Co., Ltd. (szzipingbao Zi (2022) No. 1025) and The asset evaluation report on the recoverable amount of Shenzhen antxin Technology Co., Ltd. goodwill and related asset groups involved in Jiangsu Gian Technology Co.Ltd(300709) proposed goodwill impairment test (szzipingbao Zi (2022) No. 1024) determines the recoverable amount of the asset group according to the present value of its estimated future cash flow. The recoverable amount of the asset group of Shenzhen antexin Technology Co., Ltd. held by the company is 13800000000 yuan, the book value of the asset group including the overall goodwill is 27795842303 yuan, the goodwill impairment loss is 13995842303 yuan, and the goodwill impairment loss attributable to the company is 8397505382 yuan. The details of goodwill impairment test are as follows:
