Securities code: Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) securities abbreviation: Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) Announcement No.: 2022002 Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820)
Announcement on case progress of subsidiaries and provision for 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.
Zhou, a cashier of Tianjin Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) Logistics Co., Ltd. (hereinafter referred to as the “logistics company”), a wholly-owned subsidiary of Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) (hereinafter referred to as the “company”), is suspected of taking advantage of his position to illegally embezzle the funds of the logistics company for private use and committing a crime. The public security organ has filed a criminal case. At present, the case has been transferred to the procuratorate for examination and prosecution. For details, please refer to the announcement on the suspected misappropriation of funds by employees of subsidiaries (2021059), the progress announcement on the suspected misappropriation of funds by employees of subsidiaries (2021060) and the progress announcement on the case of subsidiaries (2022001) issued by the company on the designated media. The progress of the event and the provision for credit impairment involved are described as follows:
1、 Case related progress
The attorney entrusted by the company recently issued a legal opinion on the qualitative nature of the case and the recovery of stolen goods and losses by the enterprise by consulting the case files in the procuratorate; According to the legal opinion, the public security organ has taken investigation and freezing measures for the flow of relevant funds to a platform account involving 6.0567 million yuan.
In addition, the logistics company signed the criminal return agreement with the father of the suspect, and received the refunds of the families of the suspect’s families and their families’ compensation for the suspect’s advance. The total amount was 1 million 300 thousand yuan, which was used to fill part of the losses of the logistics company.
2、 Provision for credit impairment this time
1. Reasons for withdrawing credit impairment provision this time
Zhou, a cashier of the logistics company, is suspected of taking advantage of his position to illegally embezzle the funds of the logistics company for private use, and is suspected of committing a crime. After joint verification and confirmation with the annual audit accountant, the amount involved is 104047 million yuan, which is included in other accounts receivable. In combination with available internal and external information and based on the principles of prudence and rationality, the company accrues corresponding credit impairment reserves for assets that may have credit impairment losses.
2. Asset scope, total amount and reporting period to be included in the provision for credit impairment this time
The company made an impairment test on the embezzled funds included in other receivables that may show signs of impairment as of December 31, 2021, and made a provision for credit impairment of RMB 3.048 million.
3. The method and rationality of withdrawing the provision for credit impairment this time
According to the requirements of the relevant provisions of the accounting standards for business enterprises and the stock listing rules of Shenzhen Stock Exchange, and in accordance with the accounting policies of the company, considering all reasonable and based information, including forward-looking information, estimate the expected credit loss of other receivables in a single way. The measurement of expected credit loss depends on whether the credit risk of individual other receivables has increased significantly since initial recognition.
The legal opinion issued by the attorney appointed by the company thinks that the prosecution opinion submission accuses the suspect of being guilty of duty encroachment, and is judged qualitatively and accurately from the current data. The behavior of the suspect is a pure single natural crime. The logistics company can recover the losses caused by the suspect’s alleged crimes. If the suspect and his family return money from the logistics company, their legal nature is to fill the losses of the victim, and the logistics company has the right to obtain the refunds in accordance with the law. The public security organ has taken investigation and freezing measures for the flow of relevant funds to the account of a platform involving 6.0567 million yuan. In the subsequent trial procedures, if the court decides to recognize a crime and recover it, the frozen funds will be returned to the victim in the trial or execution procedures. Lawyers believe that there is a great possibility for the judicial authorities to recover the stolen money from the above-mentioned platform.
Based on the above situation, combined with the qualitative nature of the case in the legal opinion and the situation of recovering stolen goods and losses, the logistics company will withdraw the credit impairment provision after deducting the returned compensation received and the frozen account funds of a platform that are likely to be recovered.
4. Impact of the provision for credit impairment on the company
The provision for credit impairment of the company this time complies with the provisions of the accounting standards for business enterprises, the Listing Rules of Shenzhen Stock Exchange and the relevant accounting policies of the company, and truly and objectively reflects the actual situation of the company’s assets. The provision for credit impairment is 3.048 million yuan, which correspondingly reduces the total profit of the company in 2021 by 3.048 million yuan. Events that do not affect the company’s core business will not affect the company’s normal operation.
5. Notes of the audit committee of the board of directors on the provision for credit impairment this time
The Audit Committee believes that the provision for credit impairment of the company this time is in line with the accounting standards for business enterprises, the Listing Rules of Shenzhen Stock Exchange and the relevant accounting policies of the company, with sufficient basis, reflecting the prudence and rationality of accounting and in line with the actual situation of the company. After this withdrawal, it can more objectively and fairly reflect the company’s assets and make the company’s accounting information more reasonable. Therefore, it is agreed to withdraw the provision for credit impairment this time.
3、 Other instructions
The case is still in the stage of review and prosecution. In addition to the current progress of recovering stolen goods and losses, the company will continue to actively advocate and cooperate with the judicial authorities to recover losses through various channels to minimize the adverse impact on the company. The company will pay close attention to the progress of the event and timely perform the obligation of information disclosure in strict accordance with relevant laws, regulations and regulatory requirements. All information about the event shall be subject to the information published by the company in the designated media. Please pay attention to the investment risk. It is hereby announced.
Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) board of directors April 7, 2002
