Securities code: Sinomach Precision Industry Co.Ltd(002046) securities abbreviation: Sinomach Precision Industry Co.Ltd(002046) Announcement No.: 2022018
Sinomach Precision Industry Co.Ltd(002046)
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.
Sinomach Precision Industry Co.Ltd(002046) held the 10th meeting of the 7th board of directors and the 7th Meeting of the 7th board of supervisors on April 11, 2022, deliberated and adopted the proposal on withdrawing the provision for asset impairment in 2021, as follows:
1、 Overview of the provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
Based on the principle of prudence, in order to objectively, truly and accurately reflect the assets and financial status of the company as of December 31, 2021, according to the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, the company and its subsidiaries have fully analyzed and evaluated the impairment signs of assets such as accounts receivable credit risk, inventory variability, fixed assets, construction in progress, goodwill and contract assets at the end of 2021, Provision for impairment has been made accordingly. 2. The asset scope, total amount and reporting period to be included in the provision for asset impairment this time
The company and its subsidiaries conduct impairment tests on assets with possible signs of impairment at the end of 2021 according to internal and external information to estimate their recoverable amount. If the recoverable amount of the impairment provision is lower than the book value of the asset, it shall be recognized as the recoverable loss. At the same time, if the recoverable amount is lower than the recoverable loss, it shall be recorded into the current profit and loss.
The recoverable amount refers to the higher one between the net amount of the fair value of the asset (or asset group or combination of asset groups) minus the disposal expenses and the present value of the expected future cash flow of the asset.
After a comprehensive inventory and asset impairment test, the company's provision for asset impairment in 2021 totaled 101.95 million yuan, and its composition is shown in the following table:
Proportion in the net profit attributable to the owner of the parent company of the amount of the audited project in the current period in 2021
1、 Bad debt provision 709 5.57%
2、 Provision for impairment of contract assets 709 5.57%
3、 Inventory falling price reserves 703855.25%
4、 Provision for impairment of fixed assets 0.00%
5、 Provision for impairment of goodwill 174013.66%
Total 1019580.03%
3. Reporting period to be included
The reporting period for the provision for asset impairment is from January 1, 2021 to December 31, 2021.
4. Approval procedures for withdrawing asset impairment reserves
The provision for asset impairment has been deliberated and approved at the 10th meeting of the 7th board of directors and the 7th Meeting of the 7th board of supervisors held on April 11, 2022.
2、 The impact of the current provision for asset impairment on the company
The provision for impairment of various assets is 101.95 million yuan. After considering the impact of income tax, the net profit attributable to the owner of the parent company in 2021 is reduced by 83.76 million yuan, and the owner's equity attributable to the parent company at the end of 2021 is correspondingly reduced by 83.76 million yuan.
3、 Specific description of the current accrual of asset impairment
1. Details of bad debt losses are as follows:
Unit: 10000 yuan
Current amount of the project
Notes receivable 228
Accounts receivable 741
Other receivables - 260
(1) Accrual basis: accounts receivable include notes receivable (commercial acceptance bills), accounts receivable, other receivables, etc. Accounts receivable are classified into accounts receivable with significant single amount and separate provision for bad debts, accounts receivable with combined provision for bad debts according to credit risk characteristics, and accounts receivable with insignificant single amount but separate provision for bad debts.
(2) Withdrawal: the company fully considered the reasonable and reliable information of receivables, including forward-looking information, reasonably expected the possibility of recovery, and reversed the bad debt provision of receivables of 7.09 million yuan.
2. Provision for impairment of contract assets
(1) Basis for withdrawing provision for impairment of contract assets
Contract assets refer to the right that the enterprise has transferred goods to customers and has the right to receive consideration, and the right depends on other factors other than the passage of time, including quality assurance deposit and contract performance cost. Contract assets are classified into contract assets with individual impairment provision and contract assets with portfolio impairment provision.
(2) Provision for impairment of contract assets in the current year
The company measures its provision for loss according to the amount of expected credit loss during the whole duration, and after fully considering the reasonable and reliable information of contract assets, the provision for impairment of contract assets is 7.09 million yuan.
3. Details of inventory falling price loss
Unit: 10000 yuan
The closing book balance of the project and the closing depreciation reserves, including: the depreciation reserves withdrawn in the current period
Raw materials 17411192 329
In process 70386160 3306
Stock 68165333 3403
Total 1559512685 7038
(1) Accrual basis: at the end of the period, the inventory falling price reserves are accrued according to the lower of the inventory cost and net realizable value.
Inventory goods, raw materials and other inventories that can be directly used for sale in normal production
In the course of operation, the net realizable value of the inventory is determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes; 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. (2) Provision: through inventory checking, the company has made an impairment provision of 70.38 million yuan for inventories with net realizable value lower than cost.
(3) Specific details
Unit: 10000 yuan
Asset name book balance asset receivable assets should be withdrawn in advance, reversed in the current period or withdrawn in the current period impairment amount impairment amount write off amount impairment amount
Raw materials 85677375 11921741 878329
In process product 3135625196 61607038 41843306
Stock 2576520433 53336816 48863403
Total 6568853004 1268515595 99487038
3. Provision for impairment of fixed assets and construction in progress
(1) Provision basis for fixed assets, construction in progress and intangible assets
For fixed assets, construction in progress and intangible assets with limited service life, the company determines whether there are signs of impairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment test shall be conducted.
(2) Provision for fixed assets, construction in progress and intangible assets in the current year
After testing, there is no need to make provision for impairment of fixed assets, construction in progress and intangible assets in this year. 4. Provision for impairment of goodwill
(1) Basis for provision for impairment of goodwill
No matter whether there are signs of impairment or not, the goodwill formed by the merger of the company shall be tested for impairment at least once a year. The company conducts impairment test on goodwill by comparing the recoverable amount of the relevant asset group of goodwill with the book value of the asset group and goodwill.
(2) Provision for impairment of goodwill in the current year
The company conducted impairment tests on the goodwill generated from the acquisition of Henan Airui Technology Co., Ltd. and Zhengzhou Xinya composite Superhard Material Co., Ltd. according to the regulations. According to the test results, the provision for goodwill impairment was 920000 yuan and 16480000 yuan respectively, totaling 17.4 million yuan.
4、 Explanation of the board of directors on the rationality of the company's provision for impairment of large assets
The board of Directors believes that the provision for asset impairment this time complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The provision for asset impairment this time is based on the principle of prudence and fully, objectively and fairly reflects the financial position, asset value and operating results of the company as of December 31, 2021.
5、 Opinions of the board of supervisors
The board of supervisors considered that the company's resolution procedure for withdrawing the provision for asset impairment was legal and based on sufficient basis; It complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company. After the provision of asset impairment, it can more fairly and objectively reflect the assets and financial status of the company. The board of supervisors agreed to withdraw the provision for asset impairment this time.
6、 Directory of documents for future reference
1. Resolutions of the 10th meeting of the 7th board of directors;
2. Resolutions of the 7th Meeting of the 7th board of supervisors;
3. Explanation of the board of directors on the rationality of the company's provision for asset impairment losses.
It is hereby announced.
Sinomach Precision Industry Co.Ltd(002046) board of directors April 13, 2022
