Securities code: Beijing Aerospace Changfeng Co.Ltd(600855) securities abbreviation: Beijing Aerospace Changfeng Co.Ltd(600855) Announcement No.: 2022016 Beijing Aerospace Changfeng Co.Ltd(600855) about accrual
Announcement on impairment provision for long-term equity investment of aerospace Jingyi, a holding subsidiary
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.
Beijing Aerospace Changfeng Co.Ltd(600855) (hereinafter referred to as “the company”) held the 21st Meeting of the 11th board of directors on March 30, 2022, deliberated and adopted the proposal on withdrawing the provision for impairment of long-term equity investment of aerospace Jingyi, a holding subsidiary. The relevant information is hereby announced as follows:
In order to objectively and accurately reflect the financial status and asset value of Beijing Aerospace Changfeng Co.Ltd(600855) (hereinafter referred to as the company), according to the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies, the company combined with the operating status and asset status of its subsidiary Aerospace Jingyi (Guangdong) Information Technology Co., Ltd. (hereinafter referred to as aerospace Jingyi), after impairment test and judgment, based on the principle of prudence, The company has withdrawn 44.37 million yuan of impairment reserves for its long-term equity investment. This business processing does not affect the current profit and loss of the company’s consolidated statements, but affects the current profit and loss of the parent company’s financial statements. The provision for impairment of long-term equity investment is described as follows: I. overview of the formation of long-term equity investment
In 2018, the company acquired 8.85 million yuan of shares of the parent company and became a listed subsidiary of the parent company in the form of a long-term equity offering of 8.85 million yuan, which was incorporated into the book value of the parent company in 2018. In 2020, an appraisal institution was hired to carry out impairment test on long-term equity investment, and the provision for impairment of long-term equity investment of aerospace Jingyi was 44.081 million yuan, up to 2020
On December 31, the book value of long-term equity investment was 44.37 million yuan.
As a company mainly engaged in the collection, processing and application system development of geographic information data and providing industrial geographic information solutions, aerospace Jingyi not only provides various customized services for customers, but also customized and produced different products according to the needs of the market, mainly including geographic data products and software products.
Table 1 Main Indicators of Aerospace Precision I in recent three years
Unit: 10000 yuan
Serial number project 20192020 2021
1. Operating income 102 Grandblue Environment Co.Ltd(600323) 5196238958
2. Total profit 165039 -331548 -331174
3. Net profit 147372 -316732 -360511
4. Net cash flow from operating activities 615.75 -162490 -363.64
Aerospace Jingyi is a software enterprise. In 2021, due to the influence of the market, the newly signed contract amount decreased; secondly, it is difficult to promote the acceptance of key stock projects, and the acceptance is uncertain; thirdly, the company’s cash flow continues to be tight, and the above factors have an adverse impact on the operation and development of aerospace Jingyi. In 2021, aerospace Jingyi was in a state of continuous loss, with a loss of 360511 million yuan. There was no sign of improvement in the future business situation. There were signs of impairment in the long-term equity investment formed by the company’s acquisition of aerospace Jingyi.
2、 Asset evaluation and impairment test
In view of the current operating conditions of aerospace Jingyi, according to the relevant provisions of accounting standards for Business Enterprises No. 2 – long term equity investment, accounting standards for Business Enterprises No. 8 – provision for impairment and the company’s accounting policies, the company’s management should pay attention to whether the book value of long-term equity investment is greater than the share of the book value of owner’s equity of the invested entity and other similar situations. In case of similar circumstances, the company shall conduct impairment test on long-term equity investment in accordance with accounting standards for Business Enterprises No. 8 – asset impairment. If the recoverable amount is lower than the book value of long-term equity investment, impairment provision shall be accrued.
The company hired Beijing zhongqihua Assets Appraisal Co., Ltd. to analyze the value of all shareholders’ equity of aerospace Jingyi for the purpose of impairment test, and issued the valuation report of Beijing Aerospace Changfeng Co.Ltd(600855) impairment test of long-term equity investment for the purpose of financial report [Zhong Qi Hua Ping Bao Zi 2022 (6098)]. According to the evaluation report, the recoverable amount of aerospace Jingyi equity is 1174800 yuan. Based on the comprehensive impairment test and evaluation results and the future operation status of aerospace Jingyi, the company made an impairment provision of 44.37 million yuan for the remaining long-term equity investment of aerospace Jingyi. So far, the book value of long-term equity has been written down to zero.
3、 The impact of the current provision for asset impairment on the company
The provision for impairment of the parent company’s long-term equity investment in subsidiaries this time only reduces the total profit of the parent company by 44.37 million yuan, which has no direct impact on the net profit of the consolidated statements in 2021. 4、 Notes of the board of directors on the provision for impairment of long-term equity investment
After review, the board of Directors believes that the provision for impairment of long-term equity investment this time complies with and meets the requirements of the accounting standards for business enterprises. After the provision for impairment, the company’s 2021 financial statements can more fairly reflect the company’s asset status and make the company’s accounting information more authentic, reliable and reasonable.
5、 Opinions of independent directors
The independent directors of the company believe that: after verification, the basis for the provision of asset impairment standards in 2021 is sufficient and in line with the accounting standards for business enterprises and relevant accounting policies of the company. After the provision of asset impairment, the financial statements more fairly reflect the asset value and operating results of the company, help to provide investors with more authentic, reliable and accurate accounting information, and there is no situation that damages the interests of the company and all shareholders. We agree with the company to withdraw the provision for asset impairment. 6、 Opinions of the board of supervisors
The board of supervisors held that the relevant procedures of the company’s deliberation on the proposal of withdrawing the provision for impairment of aerospace Jingyi long-term equity investment were legal and in line with the accounting standards for business enterprises and other relevant provisions. After the provision for impairment of long-term equity investment is withdrawn, the company’s asset status, financial status and operating results are more fairly reflected. There is no damage to the interests of the company and all shareholders, especially minority shareholders. The board of supervisors agreed to withdraw the provision for impairment of long-term equity investment this time.
It is hereby announced.
Beijing Aerospace Changfeng Co.Ltd(600855) board of directors
April 1, 2022
