Securities code: Zhejiang Supcon Technology Co.Ltd(688777) securities abbreviation: Zhejiang Supcon Technology Co.Ltd(688777) Announcement No.: 2022023 Zhejiang Supcon Technology Co.Ltd(688777)
Announcement on the provision for credit and 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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Zhejiang Supcon Technology Co.Ltd(688777) (hereinafter referred to as "the company" or " Zhejiang Supcon Technology Co.Ltd(688777) ") held the 11th meeting of the 5th board of directors and the 10th meeting of the 5th board of supervisors on April 9, 2022, deliberated and adopted the proposal on withdrawing provisions for credit and asset impairment in 2021. The proposal does not need to be submitted to the general meeting of shareholders for deliberation. The specific matters are announced as follows:
1、 Overview of provision for impairment this time
In accordance with the relevant requirements of the Listing Rules of Shanghai Stock Exchange on the science and innovation board, and in accordance with the accounting standards for business enterprises and the relevant accounting policies of the company, in order to objectively and fairly reflect the financial status, asset value and operating results of the company in 2021, the company and its subsidiaries conduct a comprehensive inventory and impairment test of various assets based on the principle of prudence, Provision for credit and asset impairment shall be made for relevant assets that may suffer from credit and asset impairment losses within the scope of consolidated statements as of December 31, 2021.
The company has accrued 640974 million yuan of credit impairment loss and 137007 million yuan of asset impairment loss in the current period, as shown in the following table:
Amount of provision for impairment of the project (10000 yuan)
Bad debt loss of notes receivable 688.03 credit impairment loss bad debt loss of accounts receivable 552954 bad debt loss of other accounts receivable 192.17
Inventory depreciation loss 592.92 asset impairment loss
Contract asset impairment loss 777.15
Total 777981
2、 Specific description of the current provision for impairment
(I) provision for impairment of receivables
The company conducts impairment test on notes receivable, accounts receivable and other receivables based on expected credit loss and combined with individual identification method. After testing, the total amount of credit impairment loss accrued in this period is 640974 million yuan.
(II) inventory falling price reserves
The company measures the inventory at the lower of cost and net realizable value on the balance sheet date, and withdraws the inventory falling price reserves according to the difference between the cost of a single inventory and the net realizable value.
In 2021, the company's inventory mainly includes issued goods, raw materials, finished products, products in process, etc. After impairment test, the amount of inventory falling price loss accrued in the current period is 5.9292 million yuan.
(III) provision for impairment of contract assets
No matter whether the contract assets have significant financing components or not, the company will measure the loss reserves according to the expected credit losses throughout the duration. After impairment test, the amount of impairment loss of contract assets accrued in this period is 7.7715 million yuan. 3、 Impact of the current provision for 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 company's total consolidated profit of RMB 777981 million in 2021 (the impact of income tax is not included in the total consolidated profit). The above amount has been audited and confirmed by Tianjian Certified Public Accountants (special general partnership).
4、 Independent opinions of independent directors on the company's provision for impairment
The independent directors believe that the company's provision for credit and asset impairment is based on the principles of prudence and rationality, in line with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, can objectively and fairly reflect the company's financial status, asset value and operating results, help to provide investors with more authentic, reliable and accurate accounting information, and there is no behavior of manipulating profits and damaging the interests of the company and shareholders. The decision-making procedures for withdrawing credit and asset impairment reserves this time comply with the relevant provisions of laws and regulations. It is agreed that the company shall withdraw the provision for credit and asset impairment in 2021.
5、 Opinions of the board of supervisors on the company's provision for impairment
The board of supervisors believes that the company's provision for credit and asset impairment in accordance with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies is in line with the actual situation of the company, and the provision for credit and asset impairment can more fairly reflect the assets and financial status of the company. The decision-making procedure of the board of directors of the company for considering the proposal complies with the relevant provisions of laws and regulations, and agrees that the company shall withdraw the provision for credit and asset impairment in 2021.
It is hereby announced.
Zhejiang Supcon Technology Co.Ltd(688777) board of directors April 12, 2022
