Securities code: Bear Electric Appliance Co.Ltd(002959) securities abbreviation: Bear Electric Appliance Co.Ltd(002959) Announcement No.: 2022035 Bear Electric Appliance Co.Ltd(002959)
Announcement on the provision for asset impairment in 2021
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.
Bear Electric Appliance Co.Ltd(002959) (hereinafter referred to as “the company”) held the 14th meeting of the second board of directors on April 7, 2022, deliberated and adopted the proposal on the provision for asset impairment in 2021. In accordance with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange, the relevant matters are hereby announced as follows:
1、 Overview of the provision for asset impairment this time
In accordance with the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies, in order to more truly and accurately reflect the company’s financial situation and operating results, based on the principle of prudence, the company has conducted a comprehensive inspection and impairment test on all kinds of assets within the scope of consolidated statements as of December 31, 2021, and made corresponding impairment reserves for assets with signs of impairment.
It is estimated that the total amount of the company’s provision for asset impairment in 2021 is 7024685277 yuan, which is detailed as follows:
Name of asset impairment item and amount of provision for asset impairment (yuan)
Credit impairment loss 3599168905
Including: bad debt loss of accounts receivable 3494423375
Bad debt loss of other receivables 104745530
Asset impairment loss
Including: inventory falling price loss 3425516372
Total 7024685277
2、 The recognition standard and withdrawal method of the provision for asset impairment this time
(I) impairment of financial assets
(1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company makes commitments on financial assets measured at amortized cost, debt instrument investments measured at fair value with changes included in other comprehensive income, lease receivables, loans other than financial liabilities measured at fair value with changes included in current profits and losses For financial liabilities that are not measured at fair value and whose changes are included in the current profits and losses, or financial guarantee contracts that are not financial liabilities formed by the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets, impairment treatment shall be carried out and loss reserves shall be recognized.
Expected credit loss refers to the weighted average value of credit loss of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be received by the company discounted at the original effective interest rate, that is, the present value of all cash shortages. Among them, the financial assets purchased or originated by the company with credit impairment shall be discounted according to the actual interest rate adjusted by the credit of the financial assets.
For the purchased or originated financial assets with credit impairment, the company measures the loss reserve according to the amount equivalent to the expected credit loss in the whole duration.
For accounts receivable that do not contain significant financing components or the company does not consider the financing components in the contract for no more than one year, the company uses a simplified measurement method to measure its loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
For financial assets other than the above measurement methods, the company assesses whether its credit risk has increased significantly since initial recognition on each balance sheet date. If the credit risk has increased significantly since the initial recognition, the company measures the loss reserve according to the amount of expected credit loss in the whole duration; If the credit risk does not increase significantly after initial recognition, the company shall measure the loss provision according to the amount of expected credit loss of the financial instrument in the next 12 months.
The company makes use of available reasonable and reliable information, including forward-looking information, to determine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.
On the balance sheet date, if the company judges that the financial instrument has only low credit risk, it is assumed that the credit risk of the financial instrument has not increased significantly since initial recognition.
The company evaluates the expected credit risk and measures the expected credit loss on the basis of single financial instrument or combination of financial instruments. When based on the combination of financial instruments, the company divides the financial instruments into different combinations on the basis of common risk characteristics.
The company remeasures the expected credit loss on each balance sheet date, and the increase or reversal amount of the loss provision formed thereby shall be included in the current profit and loss as impairment loss or gain. For financial assets measured at amortized cost, the loss reserves shall be offset against the book value of the financial assets listed on the balance sheet date; For the creditor’s rights investment measured at fair value and whose changes are included in other comprehensive income, the company recognizes its loss reserves in other comprehensive income and does not deduct the book value of the financial asset.
(2) Financial instruments for evaluating expected credit risk and measuring expected credit loss by portfolio
Determine group
Method for measuring expected credit loss of project contract
according to
Other receivables – deposit receivable margin refers to the experience of historical credit loss, combined with the combination of the current situation and the prediction of future economic conditions, through the combination risk exposure of default other receivables – reserve receivable and the expected credit loss rate of other receivables – temporary payment receivable in the next 12 months or the whole survival period, The consolidation scope for calculating the expected credit loss refers to the experience of historical credit loss, combined with other receivables in the current situation – within the scope of consolidation and the prediction of future economic conditions, and calculates the expected credit loss through the joint party risk exposure of default payment portfolio and the expected credit loss rate in the next 12 months or the whole duration
(3) Receivables with expected credit loss measured by portfolio
1) Specific combination and method of measuring expected credit loss
Method of measuring expected credit loss by project portfolio
Basis of
The expected credit loss of bank acceptance bills receivable is calculated by referring to the historical credit loss experience, combining the current situation and the prediction of the economic situation of the types of bills not yet received, and through the default risk exposure and the expected credit loss rate of the renewal of the whole deposit and receivable commercial acceptance bills
Accounts receivable – credit reference historical credit loss experience, combined with the current situation and the prediction of the economic situation of the aging combination of non risk characteristics, prepare the comparison table between the aging of accounts receivable and the expected credit loss rate for the whole duration, and calculate the expected credit loss accounts receivable – the consolidation scope refers to historical credit loss experience, Combined with the current situation and the prediction of the economic situation of the related parties in the accounts receivable group not within the scope, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate of the whole deposit and contract renewal period
2) Comparison between aging of accounts receivable credit risk characteristic combination and expected credit loss rate in the whole duration
Expected credit loss rate of aging accounts receivable (%)
Within 1 year (including, the same below) 5%
1-2 years 20%
2-3 years 50%
More than 3 years 100%
3) For receivables with obvious single risk characteristics, the expected credit loss is calculated according to the similar credit risk characteristics of receivables (the debtor’s ability to repay the arrears according to the terms of the contract), the historical payment loss and the estimated possible loss of the debtor’s economic status, through the default risk exposure and the expected credit loss rate throughout the duration.
(II) provision for inventory falling price reserves
The company’s ending inventory is valued according to the principle of the lower of cost and net realizable value. For the part of the inventory whose cost is expected to be unrecoverable due to damage, all or part of obsolescence or the sales price is lower than the cost, the inventory falling price reserve is withdrawn. The inventory falling price reserves of inventory commodities and bulk raw materials shall be withdrawn according to the difference between the cost of a single inventory item and its net realizable value; For other raw and auxiliary materials with large quantity and low unit price, the inventory falling price reserves shall be withdrawn by category.
The net realizable value of inventories of goods directly for sale, such as goods in stock, products in process and materials for sale, is determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes; The net realizable value of material inventories held for production is determined by the estimated selling price of finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes.
3、 Impact of the current provision for impairment on the company
The total amount of the company’s provision for asset impairment this time is 7024685277 yuan, which reduces the total profit of the company’s consolidated income statement in 2021 by 7024685277 yuan.
The provision for asset impairment has been audited and confirmed by ShineWing Certified Public Accountants (special general partnership).
4、 Explanation of the board of directors on the rationality of the provision for asset impairment
The board of directors of the company believes that the provision for asset impairment is in line with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. Based on the principle of prudence, the basis is sufficient, in line with the actual situation of the company, and fairly reflects the financial status and operating results of the company as of December 31, 2021.
It is hereby announced.
Bear Electric Appliance Co.Ltd(002959) board of directors
April 8, 2022
