catalogue
1、 About major events in the future Page 1-7 II. Accounting treatment of sales revenue Page 8-32
About Henan Cologne new energy Co., Ltd
Notes on financial matters in the second round of examination and inquiry letter of the application documents for initial public offering and listing on the gem
TJH [2022] No. 7-74
Shenzhen Stock Exchange:
We have received the second round of examination and inquiry letter on the application documents of Henan Cologne new energy Co., Ltd. for initial public offering and listing on the gem (examination and inquiry letter [2022] No. 010040, hereinafter referred to as the examination and inquiry letter) transferred from Zhongtian Guofu Securities Co., Ltd. We have carefully verified the financial matters of Henan Cologne new energy Co., Ltd. (hereinafter referred to as Cologne new energy company or company) mentioned in the audit inquiry letter, and now report as follows.
1、 Major events in the future
Public information shows that in the second half of 2021, many places in Henan Province were hit by catastrophic floods. Affected by the floods, the issuer’s production was suspended, some orders were delayed, and some factories, machinery and equipment and inventories were damaged. After preliminary calculation, after deducting the insurance deductible, the issuer expects a net loss of about 15 million yuan, accounting for 1.39% of the issuer’s audited net assets at the end of the latest period.
Please the issuer:
(1) Analyze the direct impact of the flood on the production line and whether the indirect damage to the production line and the subsequent remedial measures of the issuer are in line with the provisions of the accounting standards after the flood, and explain the direct impact of the flood on the production line The subsequent impact on the issuer’s ability to continue operations, and further improve the risk tips related to the prospectus.
The sponsor and the reporting accountant are requested to express clear opinions on question (1). (question 2 of the audit inquiry letter) (I) analyze and explain the direct and indirect impact of the flood on the issuer’s production and operation in combination with the damage of plant, machinery and equipment, inventory, suspension and resumption of production line, delay of relevant orders in hand and subsequent remedial measures after the flood, and explain whether the accounting treatment of flood losses is in line with the relevant provisions of the accounting standards for business enterprises, And further improve the risk tips related to the prospectus in view of the direct and indirect losses of the flood and the subsequent impact on the issuer’s sustainable operation ability
In the second half of 2021, many places in Henan Province were hit by catastrophic floods. The floods caused the company and its subsidiaries Henan Cologne Power Materials Co., Ltd. (hereinafter referred to as Cologne materials), Henan Cologne Industrial Co., Ltd. (hereinafter referred to as Cologne industry) and Henan new Taihang power supply Co., Ltd. (hereinafter referred to as Taihang power supply) to temporarily stop production, and the plant, machinery and equipment, inventory, vehicles and other assets suffered losses due to flooding, The direct losses of the company caused by the flood were 1714687 million yuan. After deducting the insurance compensation amount of 1386424 million yuan and the residual value income of damaged assets of 146824 million yuan, the net loss was 181439 million yuan. The difference between the net loss of 181439 million yuan and the original estimate of 15 million yuan is mainly caused by China Life Insurance Company Limited(601628) re hiring an assessment agency to assess the affected equipment, determining the final compensation scheme on March 18, 2022, and adjusting the damage of some machinery and equipment and the amount of compensation.
1. Direct and indirect impact of the flood on the company’s production and operation
(1) Damage of plant, machinery, equipment and inventory after flood
The damage of the company’s plant, machinery and equipment, inventory and other assets during the flood is as follows:
Unit: 10000 yuan
Description of project amount
Flood loss 1714687
Including: Housing construction 100.93
Machinery and equipment 799235
Including: 513981 roller kiln, circulating track line, metering pump, bowl loading system and other equipment and maintenance expenses for material section
It is mainly the loss of lithium battery production line, including 285254 stirring secondary battery sector, coater, roller press and other equipment and maintenance expenses
Inventory 842892
Loss of nickel powder, nickel sulfate, including 167777 lithium hydroxide, copper foil, WG cell, socket, steel strip and other raw materials caused by flood immersion;
The flood immersion caused the loss of power system module, electric in-process product 196839 pool and diaphragm, positive sector and other in-process products received by the production line
Flood immersion caused the loss of ternary precursors, 394566 pools of lithium batteries and other secondary batteries
Emergency repair and repair expenses 837.10 inventory emergency repair expenses and repair material picking expenses during flood
Other assets 90.50 include vehicles and construction in progress
Labor and depreciation 534.16 workshop personnel from production line shutdown to resumption
Description of project amount
Staff salary expenditure and depreciation during production line shutdown
Less 2 million yuan of unrealized residual value income: the residual value income is 146824 yuan. The intention contract has been signed but the sales has not been realized; 6735000 is the estimated residual value income at the residual value rate of 5%
Insurance indemnity 1386424
The net loss of 181439 is included in non operating expenses
Affected by the flood, the book loss of the company was 1714687 million yuan. After deducting the income from insurance compensation and residual value of damaged assets, the net loss was 181439 million yuan.
(2) Suspension and resumption of production line
By the end of February 2022, the damage of the company’s production line affected by flood, the affected production capacity and the current status are as follows:
Product category production line name flood impact current status affected capacity impact ratio
Minor impact, main
The equipment to be damaged is September 8, 2021
The daily production of line 5 storage tank and plant is resumed, with 213.33 tons and 13.33% at present
Etc., which has fully recovered since 2021
Stop production from July 20
Ternary precursor
Body 8-11 line in 2021
Slight impact, reply on August 7 of the main year
To ensure that the damaged equipment is manufactured, line 12-15
8-15 metering pumps, etc., 616.67 tons since August 14, 2021, 5.14%
Production will resume on July 22, 2021, August 15
The shutdown line has been in full swing since August
Resume production
Great impact, main
To damage production equipment
It is equipped with roller kiln and 176667 tons of automatic bowl filling system in 2021. Among them, the influence proportion of roller is ternary positive pole ternary 5 line, and the roller kiln is the third line of the company. It is estimated that 276667 tons will be 48.18% in 2022; 2022 material line 6 yuan cathode material will resume production in a heavy month. It is expected that 100000 tons will be burned in the production link. The main production impact proportion of equipment will be 25.00% since 2021
From July 22
Stop work
On September 3, 2021, the production of lithium battery and lithium battery in 2021 has been resumed since July, 2021. At present, 746778 million wh and 551778 million wh battery system line have been shut down since September 22, and the resumption of wh has been basically completed. The proportion of re production affected is 21.22%; two thousand and twenty-two
Product category production line name flood impact current status affected capacity impact ratio
Estimated impact of mixing, coating and year by year
