Securities code: Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) securities abbreviation: Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) Announcement No.: 2022015 Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987)
Announcement on withdrawal of assets, provision for credit impairment and estimated liabilities
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.
Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) (hereinafter referred to as "the company") convened the 34th meeting of the 9th board of directors and the 16th meeting of the 9th board of supervisors on April 1, 2022, and deliberated and adopted the proposal on withdrawing assets, credit impairment reserves and estimated liabilities. The company hereby announces the basic information of the accrued assets, credit impairment reserves and estimated liabilities as follows:
1、 Summary of provision for asset and credit impairment and estimated liabilities
In accordance with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, in order to accurately and objectively reflect the company's financial position as of December 31, 2021 and the operating results of 2021, based on the principle of prudence, the company conducts a comprehensive inventory and impairment test of long-term receivables, creditor's rights investment, subrogation receivables, receivables and other assets, and makes a prudent evaluation of estimated liabilities, In 2021, the provision for impairment of various assets, provision for credit impairment and estimated liabilities amounted to RMB 889.17 million, as follows:
Unit: RMB 10000
Asset Name: provision for asset and credit impairment losses and estimated liabilities in 2021
Debt investment 23889
Long term receivables 17303
Subrogation receivables 8500
Receivables and others 4854
Estimated liabilities 34371
Total 88917
2、 Accrual basis and method
(I) accrual basis and method of assets and credit impairment reserves
According to the provisions of the accounting standards for business enterprises and the company's accounting policies, based on the expected credit loss model, the company carries out impairment accounting treatment and recognizes impairment reserves for financial assets other than financial assets measured at fair value and whose changes are included in the current profit and loss. The process of credit impairment of financial assets is divided into three stages:
Phase I: for financial instruments with low credit risk on the balance sheet date or financial instruments with no significant increase in credit risk after initial recognition, the company measures its loss reserves according to the amount equivalent to the expected credit loss of the financial instrument in the next 12 months (if the expected duration is less than 12 months, it is the expected duration).
Stage II: for financial instruments whose credit risk has increased significantly since initial recognition, but there is no credit impairment, that is, there is no objective evidence indicating that there is a credit loss event for the financial instrument, the loss reserves shall be calculated according to the amount equivalent to the expected credit loss of the financial instrument in the whole duration.
Stage III: for financial instruments with credit impairment after initial recognition, the loss reserves shall be measured according to the amount equivalent to the expected credit loss within the whole duration of the financial instrument.
(II) accrual basis and method of estimated liabilities
In accordance with the principle of prudence, the company reassesses the assets guaranteed in the supplementary agreement on issuing shares to purchase assets signed with Citic Securities Company Limited(600030) and other relevant parties, and makes up the estimated liabilities according to the difference.
3、 Specific description of provision for asset and credit impairment and estimated liabilities
(I) debt investment
According to the expected credit loss model, the provision for credit impairment of debt investment in 2021 was RMB 238.89 million, mainly due to the increase of business scale and the adjustment of project impairment stages.
(II) long term receivables
According to the expected credit loss model, the provision for credit impairment of long-term receivables in 2021 was RMB 173.03 million, mainly due to the increase of business scale and the adjustment of project impairment stages.
(III) subrogation receivables
According to the expected credit loss model, in 2021, a credit impairment provision of 85 million yuan was made for subrogation recovery receivables, mainly due to market changes and adjustment of the division of impairment stages of the project.
(IV) receivables and others
Provision for impairment of RMB 4.81 million and other receivables in accordance with the accounting standards for business enterprises for the year 2021.
(V) estimated liabilities
According to the accounting standards for business enterprises and relevant accounting policies of the company, RMB 343.71 million was withdrawn for the estimated liabilities in 2021, mainly to adjust the expected loss rate of relevant assets.
4、 The impact of the provision for asset and credit impairment and estimated liabilities on the company
The company's provision for assets and credit impairment and estimated liabilities in the consolidated statements of 2021 will reduce the total profit of 2021 by RMB 889.17 million and the net profit attributable to the shareholders of the parent company by RMB 606.77 million in 2021.
5、 Relevant description
(I) deliberation opinions of the board of directors and the board of supervisors
The treatment of the company's provision for assets and credit impairment in 2021 complies with the accounting standards for business enterprises and relevant accounting policies of the company. The basis is sufficient. After the provision, it can more truly and fairly reflect the actual asset status and financial status of the company, and there is no damage to the interests of the company and all shareholders.
(II) opinions of independent directors
The company's provision for assets and credit impairment and estimated liabilities this time comply with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, truly and fairly reflect the company's financial situation as of December 31, 2021 and its operating results in 2021, which is in line with the overall interests of the company, helps to provide investors with more authentic, reliable and accurate accounting information, and does not harm the interests of the company and all shareholders, especially small and medium-sized shareholders. The necessary approval procedures have been performed for the provision for asset and credit impairment and estimated liabilities, and the basis is sufficient. We agree to this proposal.
6、 Documents for future reference
(I) resolutions of the 34th meeting of the ninth board of directors;
(II) resolutions of the 16th meeting of the ninth board of supervisors;
(III) independent opinions of independent directors on relevant matters of the 34th meeting of the ninth board of directors of the company.
It is hereby announced.
Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) board of directors April 1, 2022
