Securities code: Youon Technology Co.Ltd(603776) securities abbreviation: Youon Technology Co.Ltd(603776) Announcement No.: 2022025 convertible bond Code: 113609 bond abbreviation: Yong’an convertible bond
Youon Technology Co.Ltd(603776)
Announcement on the provision for asset impairment
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.
In order to truly reflect the financial status and operating results of Youon Technology Co.Ltd(603776) (hereinafter referred to as “the company”), the company plans to adopt asset impairment and withdraw corresponding impairment reserves for some assets that may be impaired in accordance with the guidelines for self discipline supervision of listed companies No. 1 – standardized operation of listed companies on the main board (hereinafter referred to as “standardized operation guidelines”) and accounting standards for business enterprises. The details are hereby announced as follows:
1、 Overview of provision for asset impairment
In order to truly reflect the company’s asset status and operating results, based on the principle of prudence and in accordance with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, the company checked all kinds of assets at the end of 2021. After careful analysis and relevant tests, the company accrued impairment reserves for all kinds of financial instruments, inventories, fixed assets, long-term equity investments and other assets with signs of impairment at the end of the period within the consolidation scope. In 2021, the company plans to recognize and withdraw the impairment amount of various assets totaling 317161 million yuan. The details are as follows:
(I) provision for credit impairment loss
Following the principle of prudence, according to the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments (CK [2017] No. 7) and the provisions of the company’s accounting policies, the company needs to withdraw impairment reserves for financial instruments with signs of impairment. In 2021, the company plans to recognize the accrued credit impairment loss of 28.972 million yuan, of which the accrued expected credit loss of accounts receivable is 386664 million yuan and the expected credit loss of other accounts receivable is 9.6944 million yuan.
(II) provision for asset impairment
Following the principle of prudence, according to the accounting standards for Business Enterprises No. 8 – asset impairment and the provisions of the company’s accounting policies, the company needs to withdraw impairment reserves for assets with signs of impairment. In 2021, the total amount of impairment of various assets to be recognized and withdrawn by the company is 2.744 million yuan:
1. Inventory falling price reserves
In 2021, the company reversed or reversed the inventory falling price reserve of 46700 yuan.
The recognition standard and withdrawal method of the company’s inventory falling price reserves are as follows:
On the balance sheet date, the inventory shall be measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, the inventory falling price reserves shall be accrued and included in the current profits and losses. When determining the net realizable value of inventories, it shall be based on the reliable evidence obtained, and consider the purpose of holding inventories, the impact of events after the balance sheet date and other factors.
(1) For inventories directly for sale, such as finished products, commodities and materials for sale, in the normal production and operation process, the net realizable value is determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes. For inventories held for the execution of sales contracts or labor contracts, the contract price shall be taken as the measurement basis of their net realizable value; If the quantity of inventory held is more than the quantity ordered in the sales contract, the net realizable value of the excess inventory is measured based on the general sales price. For materials used for sale, the market price shall be taken as the measurement basis of their net realizable value.
(2) In the normal production and operation process, the net realizable value of the inventory of materials that need to be processed is determined by the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes. If the net realizable value of the finished product produced by it is higher than the cost, the material shall be measured at cost; If the decrease of material price indicates that the net realizable value of finished products is lower than the cost, the material shall be measured according to the net realizable value, and the inventory falling price reserves shall be accrued according to the difference.
(3) Inventory falling price reserves are generally withdrawn according to a single inventory item; For the inventory with large quantity and low unit price, it shall be withdrawn according to the inventory category.
2. Provision for impairment of contract assets
In 2021, the company made provision for impairment of contract assets of 248900 yuan.
The method of withdrawing the provision for impairment of contract assets of the company is as follows:
According to the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments (CK [2017] No. 7) and the company’s accounting policies, the company needs to withdraw impairment reserves for financial instruments with signs of impairment. For the contract assets divided into portfolios, the company refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, and calculates the asset impairment loss through the default risk exposure and the expected credit loss rate throughout the duration.
3. Provision for impairment of long-term equity investment
In 2021, the company made provision for impairment of long-term equity investment of 2.4374 million yuan. It is mainly based on the operation of the investee hero youonprivate limited.
4. Provision for impairment of fixed assets
In 2021, the company made provision for impairment of fixed assets of 104400 yuan.
The impairment accrual method of the company’s fixed assets is as follows:
Judge whether there is any sign of possible impairment of assets on the balance sheet date. If there is any sign of impairment, the company will estimate its recoverable amount and conduct impairment test. No matter whether there is any sign of impairment of intangible assets and whether the intangible assets have reached the useful life or not, it is uncertain whether the intangible assets have reached the impairment status every year.
The recoverable amount is determined according to 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. The company estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. The recognition of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.
2、 The impact of the current provision for asset impairment on the company
The total provision for impairment of various assets of the company in the current period is 317161 million yuan, which reduces the total profit of the company in 2021 by 317161 million yuan, and correspondingly reduces the net asset value of the company at the end of 2021. The provision for asset impairment accrued in this period complies with the accounting standards for business enterprises and relevant accounting policies of the company, conforms to the actual situation of the company, reflects the principle of accounting prudence, fully, truly and fairly reflects the financial situation of the company as of December 31, 2021 and the operating results of 2021, and helps to provide investors with more reliable accounting information.
It is hereby announced.
Youon Technology Co.Ltd(603776) board of directors April 13, 2022
