Securities code: Changchai Company Limited(000570) , 200570 securities abbreviation: Changchai Company Limited(000570) , Su Changchai B Announcement No.: 2022020
Changchai Company Limited(000570)
Announcement on the provision for credit impairment and asset impairment
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. 1、 Overview of the provision for asset impairment this time
According to the self regulatory guidelines for listed companies No. 1 – standardized operation of listed companies on the main board, self regulatory guidelines for listed companies No. 1 – business handling of Shenzhen Stock Exchange, accounting standards for business enterprises and company accounting policies, the company conducted impairment test on accounts receivable, other accounts receivable and inventory as of December 31, 2021, and recorded accounts receivable The bad debt provision for other receivables is 5201715182 yuan, and the inventory falling price provision for inventory is 867602420 yuan. At the end of the period, the total provision for impairment was 6069317602 yuan. The specific composition of this provision for impairment is as follows:
No. asset category: increase impairment reserve, reverse impairment reserve, amount of impairment recognized at the end of the period (yuan) (yuan) amount of loss (yuan)
Provision for credit impairment:
1. Bad debt provision for accounts receivable 5160190620147611255145429495
2. Bad debt provision for other receivables 674822501119656356285687
Subtotal 522767287025957 Sinocelltech Group Limited(688520) 1715182
Provision for asset impairment:
3. Inventory falling price reserves 977329040109726620867602420
Total 62050019101356843086069317602
2、 Description of the basis, amount and reason for the provision for impairment this time
1. Provision for impairment of receivables
For the notes receivable, accounts receivable, other accounts receivable and financing of accounts receivable that have objective evidence of impairment and are applicable to single evaluation, the impairment test shall be conducted separately, the expected credit loss shall be recognized, and the single impairment provision shall be withdrawn. For notes receivable, accounts receivable, other receivables, accounts receivable financing, contract assets and long-term receivables without objective evidence of impairment, or when the information of expected credit loss cannot be evaluated at a reasonable cost for a single financial asset, the company divides notes receivable, accounts receivable, other receivables and accounts receivable financing into several combinations according to the characteristics of credit risk, and calculates the expected credit loss on the basis of the combination, The basis for determining the combination is as follows:
The project portfolio is determined based on the method of measuring expected credit loss
All commercial bills of bill receivable Portfolio 1 refer to the historical credit loss experience, combined with the current situation and the prediction of the future economic situation of banks with low credit rating, and calculate the expected credit loss through the default risk exposure and the expected credit loss rate of acceptance bills of the whole bill receivable portfolio 2.
Banks with high credit rating refer to the experience of historical credit loss, combined with the current situation and the prediction of the future economic situation of acceptance bills financed by receivables, and calculate the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration.
With reference to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, prepare the comparison table between the aging of accounts receivable and the expected credit loss rate of accounts receivable with credit risk and credit period, and calculate the loss for the combination of expected credit characteristics. The company takes the aging as the credit risk characteristic combination, and calculates the expected credit loss for the accounts receivable from customers according to the credit risk characteristic combination.
Accounts receivable – the consolidation scope refers to the historical credit loss experience, combined with the current situation and the prediction of the future economic situation of the related parties within the consolidation scope of the related party transaction portfolio, and calculates the expected credit loss through the default risk exposure and the expected credit loss rate throughout the duration.
The basis for determining the combination of other receivables is as follows:
The project portfolio is determined based on the method of measuring expected credit loss
The company calculates the expected credit loss by referring to the historical credit loss experience, combined with the current situation of other accounts receivable Portfolio 1 other than related parties and the prediction of future economic conditions, and through the default risk exposure accounts receivable aging portfolio and the expected credit loss rate in the next 12 months or the whole duration.
The company refers to the historical credit loss experience, combined with the current situation, the related parties within the consolidation scope of other receivables portfolio 2 and the prediction of future economic conditions, and calculates the expected credit loss through the default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
(2) Provision for bad debts
At the end of the period, the company’s accounts receivable and other receivables increased the bad debt provision by 5227672870 yuan and reversed the bad debt provision by 25957688 yuan, totaling 5201715182 yuan. The details are as follows:
Unit: Yuan
Project opening balance current period change amount closing balance
Add reversal write off
Bad accounts receivable 16603540532516019062014761125381686530417932104723 account preparation
Other receivables 31925620466748225011196563 0.003248847733 bad debt reserves
Total 19796102578522767287025957688381686530421180952456
2. Inventory falling price reserves
(1) Withdrawal method of inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. At the end of the year, on the basis of a comprehensive inventory check, the inventory falling price reserves shall be withdrawn for the part of the inventory whose cost is expected to be unrecoverable due to damage, total or partial obsolescence, lower sales price than the cost or other reasons. When withdrawing, the cost of a single inventory item is higher than its net realizable value and is included in the current profit and loss. Among them: for finished products, goods, materials for sale and other goods inventories directly 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 the material inventory that needs to be processed, in the normal production and operation process, the net realizable value shall be determined by the amount of the estimated selling price of the finished products minus the estimated cost to be incurred until the completion, the estimated selling expenses and relevant taxes; On the balance sheet date, if there is a contract price agreement for some parts of the same inventory and no contract price for other parts, their net realizable value shall be determined respectively. The inventories related to the product series with similar purposes or end uses and produced and sold in the same region, and it is difficult to distinguish them from other items of the product series for valuation, shall be accrued in combination; For the inventory with large quantity and low unit price, it shall be withdrawn according to the inventory category.
(2) Provision for inventory falling price
At the end of the period, the company conducted a comprehensive impairment test on the inventory. The amount of inventory falling price reserves increased in the current period was 977329040 yuan and the amount of inventory falling price reserves reversed was 109726620 yuan, with a total provision of 867602420 yuan. The details are as follows:
Unit: Yuan
Project opening balance current period change amount closing balance increase reversal write off
Raw materials 555951365563548824 0.00393443742726056447
Entrusted processing materials 6887657 0.00 0.006887657 0.00
Self made semi-finished products 1851244909413780216 0.007116014901553423635
Finished products 1526141617 0.001097266201135045711302910426
Low value consumables 103170862 0.00 0.00103170862 0.00
Total 404339641097732904010972662013286083223582390508
3、 The impact of the provision for asset impairment on the company’s financial position
At the end of the reporting period, the company increased the impairment provision by 6205001910 yuan, reversed the impairment provision by 135684308 yuan, accrued the impairment provision by 6069317602 yuan, and recognized the impairment loss by 6069317602 yuan. The above data have been audited by an accounting firm. 4、 Opinions of the board of directors
The board of Directors believes that the provision for impairment is based on the principle of prudence, which is conducive to a more objective and fair reflection of the company’s asset status at the end of the reporting period, and complies with the accounting standards for business enterprises and the guidelines for self discipline supervision of listed companies No. 1 – standardized operation of listed companies on the main board. 5、 Opinions of the board of supervisors
The board of supervisors believes that the provision for impairment this time complies with the relevant provisions of the accounting standards for business enterprises, and the approval procedures comply with the provisions of the articles of association and relevant laws and regulations. After the provision for impairment this time, it can more truly reflect the asset status of the company.
6、 Opinions of independent directors
The company’s provision for impairment this time has sufficient basis, legal procedures, complies with the provisions of the accounting standards for business enterprises and the company’s accounting policies, can truly and accurately reflect the company’s asset status and operating results, and there is no situation that damages the interests of minority shareholders of the company. 7、 Documents for future reference
1. Resolution of the 12th meeting of the 9th board of directors;
2. Resolution of the 11th meeting of the ninth session of the board of supervisors;
3. Independent opinions of independent directors on matters related to the 12th session of the 9th board of directors. It is hereby announced.
Changchai Company Limited(000570)
Board of directors
April 13, 2022
