Securities code: China Hainan Rubber Industry Group Co.Ltd(601118) securities abbreviation: China Hainan Rubber Industry Group Co.Ltd(601118) Announcement No.: 2022021 China Hainan Rubber Industry Group Co.Ltd(601118)
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 China Hainan Rubber Industry Group Co.Ltd(601118) (hereinafter referred to as "the company") held the 8th meeting of the 6th board of directors and the 5th meeting of the 6th board of supervisors on April 7, 2022, deliberated and adopted the proposal on withdrawing the provision for asset impairment in 2021. The relevant information is hereby announced as follows:
1、 Details of the provision for asset impairment this time
In order to more truly and accurately reflect the company's financial position as of December 31, 2021 and the operating results of 2021, according to the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, the company and its subsidiaries checked, analyzed and evaluated various assets within the scope of the consolidated financial statements of 2021 financial report based on the principle of prudence, Provision for impairment is made for some assets that may suffer from credit and asset impairment. 1. Credit impairment loss of receivables
The company recognizes the provision for loss of receivables based on the expected credit loss, measures the expected credit loss of receivables in different stages, accrues credit impairment and records it into the current profit and loss.
After testing, the credit loss of accounts receivable in this period is 9.9259 million yuan; The credit loss of other receivables is 303164 million yuan.
2. Inventory falling price loss
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory falling price reserves shall be withdrawn. Inventory falling price reserves are usually withdrawn according to the difference between the cost of a single inventory item and its net realizable value. For the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; For the inventories related to the product series produced and sold in the same region, with the same or similar end use or purpose, and difficult to be measured separately from other items, the inventory falling price reserves can be accrued jointly.
After testing, the inventory falling price loss of 296492 million yuan was accrued in the current period.
3. Impairment loss of fixed assets and construction in progress
At the end of the current period, the company checks whether there are signs of possible impairment of fixed assets and construction in progress. When there are signs of impairment, the company shall conduct impairment test to confirm its recoverable amount, and withdraw impairment loss according to the lower of book value and recoverable amount.
According to the test, the impairment loss of fixed assets and the impairment loss of construction in progress are respectively 4155600 yuan and 1355200 yuan.
4. Impairment loss of long-term equity investment
At the end of the period, the company inspected the long-term equity investment item by item to judge whether there is any sign of possible impairment of the long-term equity investment. If there are signs of impairment such as the deterioration of the operating conditions of the invested entity, its recoverable amount shall be estimated. If the recoverable amount of long-term equity investment is lower than its book value, the book value of long-term equity investment shall be written down to the recoverable amount, and the written down amount shall be recognized as asset impairment loss and included in the current profit and loss, and the corresponding impairment loss of long-term equity investment shall be accrued at the same time.
The long-term impairment loss of equity investment in the current period is 16.421 million yuan.
5. Goodwill impairment loss
At the end of the current period, the company checks whether there are signs of possible impairment of goodwill. When there are signs of impairment, it shall conduct impairment test to confirm its recoverable amount, and withdraw impairment loss according to the lower of book value and recoverable amount. After testing, 12 million yuan of goodwill impairment loss was accrued in the current period.
2、 The impact on the company of the accrued asset impairment loss
In 2021, the company accrued all kinds of credit and asset impairment losses totaling 1038944 million yuan, reducing the total profit of consolidated statements in 2021 by 1038944 million yuan.
3、 Explanation of the audit committee of the board of directors on the rationality of the company's provision for asset impairment
The audit committee of the board of Directors believes that the company's provision for asset impairment this time complies with the provisions of the accounting standards for business enterprises and relevant systems of the company, and has performed the corresponding decision-making procedures. After the provision, it can more fairly reflect the company's asset status and conform to the actual situation of the company, and agrees to the provision for asset impairment this time.
4、 Opinions of independent directors
All independent directors of the company expressed their independent opinions and believed that the provision for asset impairment based on the principle of prudence is in line with the accounting standards for business enterprises and relevant regulations of the company, the basis for provision is sufficient, can objectively and fairly reflect the financial situation of the company, the decision-making process is legal and effective, and does not harm the interests of the company and shareholders. Agree to withdraw the provision for asset impairment this time.
5、 Opinions of the board of supervisors
The supervisors attending the meeting believed that the decision-making procedure of the company for withdrawing the provision for asset impairment was legal and based on sufficient basis; The provision for asset impairment complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company. After the provision, it can more fairly reflect the asset status of the company, and it is agreed to withdraw the provision for asset impairment this time.
6、 Documents for future reference
1. China Hainan Rubber Industry Group Co.Ltd(601118) the resolution of the 8th meeting of the 6th board of directors;
2. China Hainan Rubber Industry Group Co.Ltd(601118) the resolution of the 5th meeting of the 6th board of supervisors;
3. China Hainan Rubber Industry Group Co.Ltd(601118) the resolution of the fourth meeting of the audit committee of the sixth board of directors;
4. Independent opinions of independent directors.
It is hereby announced.
China Hainan Rubber Industry Group Co.Ltd(601118) board of directors
April 11, 2022
