Securities code: Gohigh Data Networks Technology Co.Ltd(000851) securities abbreviation: Gohigh Data Networks Technology Co.Ltd(000851) Announcement No.: 2022048
Gohigh Data Networks Technology Co.Ltd(000851)
Announcement on provision for impairment in 2021
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
In order to truly reflect the company’s financial and operating conditions, based on the principle of prudence and in accordance with the provisions of the accounting standards for business enterprises, the company and all its subsidiaries conducted asset impairment tests in 2021, and accrued inventory falling price reserves, bad debt reserves of accounts receivable, contract assets impairment reserves, fixed assets impairment reserves, intangible assets impairment reserves and goodwill impairment reserves.
The balance of provision for asset impairment at the beginning of 2021 was 421764 million yuan, the provision for asset impairment this year was 1233485 million yuan, the reversal and recovery was 462400 yuan, the provision for asset impairment written off and written off was 7.377 million yuan, the consolidation scope reduced the loss of asset impairment by 1147955 million yuan, and the decrease for other reasons was 1000 yuan. The balance of provision for impairment at the end of the year was 4224765 million yuan, reducing the total profit of 2021 by 1228861 million yuan.
1、 Basis and condition of the current provision for impairment
(I) provision for inventory falling price reserves
Accrual basis of inventory falling price reserves: on the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the ending inventory is priced according to the net realizable value, and the inventory falling price reserves are withdrawn according to the difference between the cost and the net realizable value. After checking the inventory of raw materials, goods in stock, goods issued, etc., the company found that some of the inventories had a long account age. In order to accurately reflect the company’s asset status, the company made provision for inventory depreciation in strict accordance with the relevant provisions of the accounting standards for business enterprises.
In 2021 Gohigh Data Networks Technology Co.Ltd(000851) (Consolidation), the balance of inventory falling price reserves at the beginning of the year was 921637 million yuan, decreased by 10 thousand yuan for other reasons, and the balance of inventory falling price reserves at the end of the year was 921627 million yuan.
(II) bad debt provision of accounts receivable
1. Aging analysis
On the balance sheet date, the accounts receivable are grouped according to the business segment of the company, the expected loss rate method is used to determine the percentage of bad debt loss of each aging group, and the balance of accounts receivable of each aging group is multiplied by the percentage of bad debt provision of the corresponding years to obtain the amount of bad debt provision of the current period.
2. Receivables with significant / insignificant single amount and single provision for bad debt reserves
On the balance sheet date, bad debt losses shall be accrued separately for accounts receivable that have objective evidence indicating that they cannot be recovered.
The balance of bad debt provision at the beginning of 2021 was 296467400 yuan, the bad debt provision of this year was 1063213 million yuan, the reversal and recovery of 462400 yuan this year, the write off and write off of bad debt was 7.177 million yuan, the consolidation scope reduced the bad debt provision of 1147955 million yuan, and the balance of bad debt provision at the end of the year was 2803538 million yuan.
(III) provision for impairment of contract assets
The impairment amount of contract assets is accrued according to the bad debt ratio of accounts receivable of the corresponding business segment
The balance of provision for impairment of contract assets at the beginning of 2021 was 4.8631 million yuan, the provision for impairment in this year was -727200 yuan, the write off impairment in this year was 200000 yuan, and the balance of provision for impairment of contract assets at the end of the year was 3.936 million yuan.
(IV) provision for impairment of long-term equity investment
Accrual basis for impairment of long-term equity investment: on the balance sheet date, compare the book value of long-term equity investment with the recoverable amount. If the recoverable amount is lower than the book value, the provision for impairment of long-term equity investment shall be accrued according to the difference. The recoverable amount is recognized by the higher of the net amount of the fair value of the long-term equity investment minus the disposal expenses and the present value of the estimated future cash flow.
In 2021 Gohigh Data Networks Technology Co.Ltd(000851) (Consolidation), the impairment provision for long-term equity investment at the beginning of the period was 3 million yuan, and the balance of impairment provision for long-term equity investment at the end of the year was 3 million yuan. There was no sign of impairment of long-term equity investment in the current period and no provision was made.
(V) provision for impairment of fixed assets
Accrual basis for impairment of fixed assets: on the balance sheet date, the book value of fixed assets is compared with the recoverable amount. If the recoverable amount is lower than the book value, the provision for impairment of fixed assets is accrued according to the difference. The recoverable amount is recognized by the higher of the net amount of the fair value of fixed assets minus the disposal expenses and the present value of the estimated future cash flow.
In 2021 Gohigh Data Networks Technology Co.Ltd(000851) (Consolidation), the balance of the provision for impairment of fixed assets at the beginning of the period was 0 million yuan. After the impairment test in the current period, the book value of fixed assets was higher than the recoverable amount, so it was not impaired. The balance of the provision for impairment of fixed assets at the end of the year was 0 million yuan.
(VI) provision for impairment of intangible assets
Accrual basis for impairment of intangible assets: on the balance sheet date, the book value of intangible assets is compared with the recoverable amount. If the recoverable amount is lower than the book value, the provision for impairment of intangible assets is accrued according to the difference. The recoverable amount is recognized by the higher of the net amount of the fair value of intangible assets minus the disposal expenses and the present value of the estimated future cash flow.
In 2021 Gohigh Data Networks Technology Co.Ltd(000851) (Consolidation), the balance of provision for impairment of intangible assets at the beginning of the period was 169342 million yuan, the provision for impairment of this year was 133519 million yuan, and the balance of provision for impairment of intangible assets at the end of the year was 302861 million yuan.
(VII) provision for impairment of goodwill
Accrual basis of goodwill impairment: on the balance sheet date, when the impairment test is conducted on the relevant asset group or combination of asset groups containing goodwill, if there are signs of impairment in the asset group or combination of asset groups related to goodwill, the impairment test shall be conducted on the asset group or combination of asset groups not containing goodwill, the recoverable amount shall be calculated, and compared with the relevant book value to confirm the corresponding impairment loss. Then carry out impairment test on the asset group or combination of asset groups containing goodwill, and compare the book value of these relevant asset groups or combination of asset groups (including the book value of the apportioned goodwill) with their recoverable amount. If the recoverable amount of relevant asset groups or combination of asset groups is lower than its book value, the impairment loss of goodwill shall be recognized.
At the beginning of Gohigh Data Networks Technology Co.Ltd(000851) (merger) in 2021, the provision for goodwill impairment was 8.3356 million yuan. The company hired an evaluation agency to estimate the expected future cash flow of the asset group containing goodwill of Beijing Gaoyang Jiexun Information Technology Co., Ltd. (Hejia pingbao Zi [2022] No. 019 asset evaluation report), which was lower than the sum of the fair value of identifiable assets and goodwill calculated continuously according to the goodwill asset group. The provision for goodwill impairment was 4.425 million yuan in this period, The year-end balance of goodwill impairment reserve is 12.73 million yuan.
2、 Impact of the current provision for impairment
The company’s provision for asset impairment this time will reduce the total profit of 2021 by 1228861 million yuan.
The company’s provision for impairment this time is in line with the actual situation of the company’s assets and relevant policies and regulations. After the provision for impairment is made, the company can more fairly reflect the company’s asset status and make the company’s accounting information about asset value more authentic, reliable and reasonable.
3、 Review and special description of provision for impairment
1. Deliberations of the board of directors
The above matters have been deliberated at the 25th meeting of the 9th board of directors. The number and procedures of the meeting comply with the provisions of the company law and the articles of association, and the meeting is legal and effective. The company’s provision for impairment this time is in line with the actual situation of the company’s assets and relevant policies and regulations. After the provision for impairment is made, the company can more fairly reflect the company’s asset status and make the company’s accounting information about asset value more authentic, reliable and reasonable.
2. Independent directors expressed independent opinions
According to the guiding opinions on the establishment of independent director system in listed companies, the Listing Rules of Shenzhen Stock Exchange and other relevant provisions, the independent directors express the following independent opinions on the company’s provision for impairment in 2021:
The company’s provision for impairment this time is to ensure the standardized operation of the company, adopt prudent accounting principles, fairly reflect the current financial situation and operating results of the company, and do not harm the interests of the company and minority shareholders. It is agreed to withdraw the provision for impairment this time.
3. The audit committee of the board of directors issued a statement on the reasonableness of the provision for impairment. According to the Listing Rules of Shenzhen Stock Exchange, accounting standards for Business Enterprises No. 8 – asset impairment and the working rules of the audit committee of the board of directors, the audit committee of the board of directors of the company had in-depth communication with the main management personnel and verified the relevant materials of the provision for impairment, After careful consideration of the proposal on the company’s provision for impairment in 2021, the company’s provision for impairment in 2021 is hereby explained as follows: the company’s provision for asset impairment this time complies with and complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision for impairment is sufficient and in line with the current situation of the company’s assets. The provision for impairment is based on the principle of prudence, which helps to more fairly reflect the company’s financial position, asset value and operating results as of December 31, 2021, and make the company’s accounting information more reasonable.
3、 Documents for future reference
1. Resolutions of the 25th meeting of the ninth board of directors;
2. Resolutions of the 14th meeting of the ninth board of supervisors;
3. Opinions of independent directors signed and confirmed by independent directors.
It is hereby announced.
Gohigh Data Networks Technology Co.Ltd(000851) board of directors April 13, 2022
