Securities code: Tianjin Realty Development (Group) Co.Ltd(600322) securities abbreviation: Tianjin Realty Development (Group) Co.Ltd(600322) Announcement No.: 2021013 Tianjin real estate development (Group) Co., Ltd
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.
1、 Overview of the provision for asset impairment this time
Tianjin real estate development (Group) Co., Ltd. held the 19th interim Board of directors and the 8th interim Board of supervisors of the 10th Session of the company on April 11, 2022, and deliberated and adopted the proposal on the provision for asset impairment. In 2021, according to the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies, the company conducted a comprehensive inspection and impairment test on all kinds of assets within the scope of consolidated statements as of December 31, 2021. Based on the principle of prudence, the company needs to make corresponding impairment reserves for relevant assets that may have impairment losses. The company’s assets with provision for impairment this time are mainly the inventories and investment real estate of some subsidiaries, with a total provision for asset impairment of 180524040214 yuan. The main information is as follows:
Withdrawal type subsidiary name project name withdrawal amount (project development entity) (yuan)
Suzhou Huaqiang Real Estate Development Co., Ltd. Meiyu Huating project 24348761426 (hereinafter referred to as “Huaqiang company”) Meiyu Lanting project 46518005111
Liuyuan road project 515905647 Tianfang (Suzhou) Real Estate Co., Ltd. (to liufengyayuan)
(hereinafter referred to as “real estate company”) Shizi Street project 748652323 (Yingfeng Yayuan)
Tiantai road project (phase II) of Tianjin Huabo Real Estate Development Co., Ltd. 52191572523 (hereinafter referred to as “Huabo company”) (shengwenjiayuan)
Inventory falling price reserve Shengya Jiayuan commercial housing project 982589575 Shengting Mingjing garden of Tianjin Huajing Real Estate Development Co., Ltd. 217082346 (hereinafter referred to as “Huajing company”) Shengting Mingjing Centennial house 1460258198
Tianjin Huatang Real Estate Development Co., Ltd. Chentang project 1030704330 (hereinafter referred to as “Huatang company”) (Meitang Jiayuan, Qitang Jiayuan)
Shuanggang 118 project of Tianjin Huaheng Real Estate Development Co., Ltd. 8882317553 (hereinafter referred to as “Huaheng company”) (plot 118 of xinjingyuan)
Tianjin Shentai Real Estate Co., Ltd. (hereinafter jindongli (hang) No. 2017021)
Plot 26867054741 (plot A1 and A2 of Jinbin Avenue)
Huabo shengyajiayuan underground garage 2046026032
Provision for impairment of investment real estate underground garage of Shengting garden project of Huajing company 1662514526 underground garage of XINKEYUAN, xinyingyuan, xinshangyuan and 13052595883 xinjingyuan project of Huaheng company
Total — 180524040214
Note: in the above table, Shentai company is a wholly-owned subsidiary of Tianjin Seaview Industrial Co., Ltd. (the company holds 50%) and the rest are wholly-owned subsidiaries of the company.
2、 Recognition standard and withdrawal method of inventory falling price reserves
(I) inventory
1. On the balance sheet date, inventories shall be measured at the lower of cost and net realizable value.
If the cost of inventory is higher than its net realizable value, the provision for inventory falling price shall be withdrawn and included in the current profits and losses.
2. For raw materials and low value consumables, the inventory falling price reserves shall be accrued according to the inventory category, and for developed products, the inventory falling price reserves shall be accrued according to the inventory items.
3. On the balance sheet date, the company shall determine the net realizable value of inventories. If the factors affecting the previous write down of inventory value have disappeared, the amount of write down shall be restored and reversed within the amount of inventory falling price reserves that have been accrued, and the reversed amount shall be included in the current profits and losses.
(II) investment real estate
On the balance sheet date, the investment real estate with signs of impairment shall be tested for impairment. Under the cost model, if the impairment test results show that the recoverable amount of the investment real estate is lower than its book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss. The recoverable amount is the higher one between the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset.
3、 Details of the current provision for asset impairment
(I) the provision for inventory falling price of Suzhou Meiyu Huating project developed by Huaqiang company is 24348761426 yuan, and the provision for inventory falling price of Suzhou Meiyu Lanting project is 46518005111 yuan
Suzhou Meiyu Huating project and Suzhou Meiyu Lanting project are located in Xiangcheng District, Suzhou. In 2021, the real estate policy is still tightening, and the regional differentiation of Suzhou real estate market is also obvious. Based on the principle of prudence, the company estimates the surrounding environment of Suzhou Meiyu Huating project and Suzhou Meiyu Lanting project, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, after deducting the existing costs and estimated future costs and taxes according to the expected recoverable amount of the project, the company made provision for inventory falling price of 24348761426 yuan for Suzhou Meiyu Huating project and 46518005111 yuan for Suzhou Meiyu Lanting project. (II) for the Liuyuan road developed by the real estate company, the provision for inventory falling price is 515905647 yuan, and the provision for inventory falling price of Shizi Street project is 748652323 yuan
Liuyuan road project is located in Gusu District, Suzhou city. In 2021, the real estate policy is still tightening, and the regional differentiation of Suzhou real estate market is also obvious. Based on the principle of prudence, the company estimates the comprehensive factors such as the surrounding environment of Liuyuan road and Shizi Street projects, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, after deducting the existing costs and estimated future costs and taxes according to the expected recoverable amount of the project, the company made provision for inventory falling price of RMB 515905647 for Liuyuan road project and RMB 748652323 for Shizi Street project.
(IV) for the Tiantai road project (phase II) developed by Huabo company, the provision for inventory falling price is 52191572523 yuan, the provision for inventory falling price of Shengya Jiayuan commercial housing project is 982589575 yuan, and the provision for impairment of Shengya Jiayuan underground garage is 2046026032 yuan
Tiantai road project (including Shengya Jiayuan and Tiantai road phase II) is located in Hebei District, Tianjin. In 2021, the real estate policy is still tightening, and the regional differentiation of Tianjin real estate market is also obvious. Based on the principle of prudence, the company estimates the comprehensive factors such as the surrounding environment of the Tiantai road project, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, after deducting the existing costs and estimated future costs and taxes according to the estimated recoverable amount of the project, the company made provision for inventory falling price of 52191572523 yuan for Tiantai road project (phase II), 982589575 yuan for Shengya Jiayuan commercial housing project and 2046026032 yuan for Shengya Jiayuan underground garage.
(V) the provision for inventory falling price of Shengting Mingjing garden developed by Huajing company is 217082346 yuan, the provision for inventory falling price of Shengting Mingjing Centennial residence is 1460258198 yuan, and the provision for impairment of underground garage of Shengting garden project developed by Huajing company is 1662514526 yuan
Shengting garden project (including Shengting Lijing, Shengting Mingjing and Shengting Haojing garden) is located in Beichen District, Tianjin. In 2021, the real estate policy is still tightening, and the regional differentiation of Tianjin real estate market is also obvious. Based on the principle of prudence, the company estimates the comprehensive factors such as the surrounding environment of the Tiantai road project, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, after deducting the existing costs and estimated future costs and taxes according to the estimated recoverable amount of the project, the company respectively made an inventory depreciation reserve of 217082346 yuan for Shengting Mingjing garden, 1460258198 yuan for Shengting Mingjing Centennial residence and 1662514526 yuan for the underground garage of Shengting garden project developed by Huajing company.
(VI) the provision for inventory falling price of Chentang project developed by Huatang company is 1030704330 yuan
Chentang project is located in Hexi District, Tianjin. In 2021, the real estate policy is still tightening, and the regional differentiation of Tianjin real estate market is also obvious. Based on the principle of prudence, the company estimates the comprehensive factors such as the surrounding environment of Chentang project plot, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, the company accrued 1030704330 yuan of inventory falling price reserves according to the expected recoverable amount of the project after deducting the existing costs and estimated future costs and taxes.
(VII) the provision for inventory falling price of Shuanggang 118 project developed by Huaheng company is 8882317553 yuan, and the provision for impairment of underground garage of related projects of Huaheng company is 13052595883 yuan
The Shuanggang project developed by Huaheng company (including Shuanggang 118, Xinke Park, Xinying Park, Xinshang Park and Xinjing Park) is located in Jinnan District, Tianjin. In 2021, the real estate policy is still tightening, and the regional differentiation of Tianjin real estate market is also obvious. Based on the principle of prudence, the company estimates the comprehensive factors such as the surrounding environment of Shuanggang project plot, the transaction price of similar buildings and the actual situation of the project. It is estimated that the recoverable amount of the project is lower than the book value. At the end of the reporting period, after deducting the existing costs and estimated future costs and taxes according to the estimated recoverable amount of the project, the company made an inventory falling price reserve of 8882317553 yuan for Shuanggang 118 project and 13052595883 yuan for XINKEYUAN, xinyingyuan, xinshangyuan and xinjingyuan underground garages developed by Huaheng company.
(VIII) for the jindongli (hang) 2017021 plot project developed by Shentai company, the provision for inventory falling price is 26867054741 yuan
Jindongli (hang) plot 2017021 project is located in Dongli District, Tianjin. In 2020, the real estate policy is still tightening, and the regional differentiation of Tianjin real estate market is also obvious. Based on the principle of prudence, the company has evaluated the surrounding environment of jindongli (hang) plot 2017021, the transaction price of similar buildings and the project
