Securities code: Guizhou Zhenhua E-Chem Inc(688707) securities abbreviation: Guizhou Zhenhua E-Chem Inc(688707) Announcement No.: 2022015 Guizhou Zhenhua E-Chem Inc(688707)
Announcement on the provision for asset impairment in 2021
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.
Guizhou Zhenhua E-Chem Inc(688707) (hereinafter referred to as ” Guizhou Zhenhua E-Chem Inc(688707) ” or “the company”) held the 20th meeting of the 5th board of directors on April 7, 2022, deliberated and adopted the proposal on the provision for asset impairment in 2021, and now the relevant matters are announced as follows: I. provision for asset impairment
In accordance with the accounting standards for business enterprises and the company’s financial system and other relevant provisions, in order to objectively and fairly reflect the company’s financial status and operating results as of December 31, 2021, the company has comprehensively checked the assets within the scope of the company’s consolidated statements based on the principle of prudence, and fully communicated with the annual auditor. In 2021, the provision for impairment of various assets was 4540790099 yuan; The provision for impairment of assets reversed and written off is 1924005598 yuan. The details are as follows:
Unit: Yuan
The project is accrued in 2021 and reversed and written off in 2021
Bad debt provision 4085112348-
Inventory falling price reserves 4556777511924005598
Total 45407900991924005598
2、 Specific description of the provision for asset impairment
For inventory assets, on the balance sheet date, if the inventory cost is higher than its net realizable value, the inventory falling price reserves shall be accrued. After testing, the total amount of asset impairment loss to be accrued this time is 4.5568 million yuan.
For accounts receivable, the company considered all reasonable and based information, including forward-looking information. After testing, the company accrued 408511 million yuan of bad debt reserves for accounts receivable in 2021. This is mainly because the balance of accounts receivable at the end of the period has increased significantly compared with that at the beginning of the period. The company calculates the expected credit loss equivalent to the whole duration and withdraws the corresponding bad debt reserves. 3、 The impact of the current provision for asset impairment on the company
The provision for impairment is included in the accounts of asset impairment loss and credit impairment loss, which has a total impact on the total consolidated profit of the company in 2021 of 454079 million yuan. 4、 Opinions of the board of directors on the provision for asset impairment this time
The board of directors of the company believes that the provision for asset impairment made by the company and its subsidiaries according to the actual situation complies with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, fairly reflects the company’s asset status, and agrees with the company’s provision for asset impairment this time. 5、 Independent opinions of independent directors on the company’s provision for asset impairment
After deliberation, the company’s proposal on the provision for asset impairment in 2021 complies with the relevant provisions of the accounting standards for business enterprises and the company’s financial management system, and the relevant deliberation procedures are legal and compliant. After the relevant impairment losses are accrued this time, the company’s financial statements can more fairly reflect the company’s financial status and operating results, and help to provide investors with more authentic, reliable and accurate accounting information. There is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. It is agreed that the company should withdraw the provision for asset impairment this time. 6、 Opinions of the board of supervisors on the provision for asset impairment
The provision for asset impairment this time meets the requirements of the accounting standards for business enterprises and other relevant laws and regulations; The basis for the provision for asset impairment is sufficient, in line with the principle of accounting prudence, and can truly and accurately reflect the company’s financial information; The decision-making procedure for withdrawing the provision for asset impairment this time complies with the requirements of the articles of association, the Listing Rules of Shanghai Stock Exchange on the science and innovation board and other relevant laws and regulations, and there is no situation that damages the interests of the company and shareholders.
It is hereby announced.
Guizhou Zhenhua E-Chem Inc(688707) board of directors April 8, 2022
