Securities code: Zhejiang Founder Motor Co.Ltd(002196) securities abbreviation: Zhejiang Founder Motor Co.Ltd(002196) Announcement No.: 2022029 Zhejiang Founder Motor Co.Ltd(002196)
Announcement on provision for impairment of assets and write off of assets
The company and its directors, supervisors and senior managers guarantee that the contents of the announcement are true, accurate and accurate
Complete, and be responsible for false records, misleading statements or major omissions in the announcement.
Zhejiang Founder Motor Co.Ltd(002196) (hereinafter referred to as ” Zhejiang Founder Motor Co.Ltd(002196) ” and “the company”) held the 16th meeting of the 7th board of directors and the 10th meeting of the 7th board of supervisors on April 14, 2022, deliberated and adopted the proposal on the provision for asset impairment, and now the relevant matters are announced as follows:
1、 Provision for asset impairment
(I) overview of the provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
In order to truly reflect the company’s financial situation and operating results, in accordance with the accounting standards for business enterprises, the articles of association, the company’s accounting policies, accounting estimates and other relevant provisions, the company has conducted impairment tests on various assets within the scope of consolidated statements by the end of 2021, and made corresponding impairment reserves for assets with signs of impairment. 2. The asset scope and total amount of the current provision for asset impairment
The asset scope of the current provision for asset impairment includes inventory and intangible assets. The total provision for impairment of various assets to be withdrawn in 2021 is 290438 million yuan, as shown in the following table:
Proportion of original value of assets and net asset value withdrawn in 2021 to the absolute value of net profit attributable to shareholders of Listed Companies in 2020
Inventory 45019263966181120567 1.89%
Intangible assets 21681381138264169871 2.66%
Total 66700645104445290438 4.55%
(II) specific description of the provision for asset impairment this time
1. Stock
The company conducts a comprehensive inventory of inventories at the end of the period and measures them according to the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory falling price reserves shall be withdrawn. The basis for determining the net realizable value of different types of inventories is different. For the material inventory that needs to be processed, the net realizable value is calculated based on the estimated selling price of the inventory minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
Due to the change of market project demand, product switching and other reasons, according to the above standards and the inventory of ending inventory, the provision for inventory falling price is 120567 million yuan, accounting for 2.68% of the original value of ending inventory. The provision for inventory falling price mainly refers to the raw materials and finished products related to the auxiliary drive motor of new energy vehicles.
2. Intangible assets
The company conducts impairment test on intangible assets at the end of the period, and judges whether it is necessary to withdraw impairment provision according to the comparison between the recoverable amount and the book value. 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.
With the increasing demand of new energy vehicles for mileage, the low-voltage three in one system is no longer suitable for the market demand. At present, the voltage requirement of the mainstream electric drive market is basically above 300V; Moreover, considering the demand of fast charging, the driving voltage in the future will begin to develop towards ultra-high voltage, directly increasing from 400V to 800V. Therefore, the three in one system suppliers in the electric drive market, such as Bosch, ZF and GKN, are all high-voltage products. In 2021, the market sales volume of low-voltage three in one in the electric drive market was zero. At present, there is no market demand, and the market attraction has been lost from the perspective of future trend.
From the technical trend of new energy vehicles, the low-voltage three in one adopts 115vdc DC bus voltage, and the system power level can only meet the requirements of A00 class complete vehicles below 30kW. With the development of passenger car market, high power and power density have become the development trend of the market. The mainstream voltage platform has been completely switched from low voltage to medium voltage platform of 400VDC, and there is a trend to continue to increase to 800vdc. The important reason for this development trend is the selection of controller power module. MOSFET is used for 100V, IGBT is used for 400V and silicon carbide module is used for 800V. Due to the rapid development of power electronic devices in recent years, the prices of IGBT and silicon carbide modules are gradually reduced, and the cost reduction and development speed exceed the market expectation. At present, founder’s vehicle drive motor closely follows the market demand, and the new product route is 400V system, focusing on 800V products. The original low-voltage three in one technical scheme has not been applied subsequently. Considering the impact of the above market and technological trends, the company’s intangible assets – proprietary technology – low-voltage three in one proprietary technology is expected to have a low value of future cash flow, and the impairment is 169871 million yuan this time.
(III) approval procedures for the provision for asset impairment
The provision for asset impairment of the company has been deliberated and approved at the 16th meeting of the 7th board of directors and the 10th meeting of the 7th board of supervisors, and the independent directors have expressed independent opinions on the matter.
According to the Listing Rules of Shenzhen Stock Exchange and the articles of association, the provision for asset impairment does not need to be submitted to the general meeting of shareholders for deliberation.
(IV) the impact of the current provision for asset impairment on the company
The total provision for impairment of various assets is RMB 290438 million, which reduces the net profit attributable to shareholders of listed companies by RMB 290438 million in 2021, and the owner’s equity attributable to listed companies in consolidated statements by RMB 290438 million.
2、 Write off assets
In accordance with the accounting standards for business enterprises, the articles of association, Shenzhen Stock Exchange self regulatory guidelines for listed companies No. 1 – standardized operation of listed companies on the main board and other relevant provisions, in order to truly reflect the company’s financial situation, the company has written off the following assets in accordance with the principles of legal compliance, standardized operation, examination and approval one by one and account cancellation.
(I) the total amount of the two contract assets with full provision for impairment as of December 31, 2021 is 3538708380 yuan, which is written off as follows:
Generated by associated transaction due to related company name, fund nature, write off amount and write off reason
Business termination
Quanxing Precision Industry Group Co., Ltd. (litigation based on the payment of 13.3 million.00 yuan, or not, hereinafter referred to as “Quanxing company”) cannot be collected
return
Business end
The payment of Guangxi Sanli Technology Development Co., Ltd. is up to 2208708380 yuan. The quality assurance is not guaranteed. It is estimated that
uncollectible
Total 3538708380
After the above-mentioned amounts are written off, the financial department and business department of the company will establish an audit account of the written off receivables and continue to make full efforts to recover them.
3、 Impact of assets written off this time on the company
The company’s assets written off this time have been fully provided for impairment in accordance with the relevant provisions of the accounting standards, which will not affect the company’s profits in 2021 and subsequent years. Based on the principle of accounting prudence, all items of assets written off this time truly reflect the financial situation of the enterprise, meet the requirements of accounting standards and relevant policies, comply with the actual situation of the company, do not involve the company’s related parties, and do not harm the interests of the company and shareholders.
4、 Opinions of the board of directors, the board of supervisors and independent directors on the provision for asset impairment and write off of assets (I) opinions of the board of directors
The company’s provision for asset impairment this time is based on the principle of prudence. According to the accounting standards for business enterprises, the company has conducted an impairment test on the assets belonging to each company within the consolidation scope, and has accrued the impairment provision for the assets with signs of impairment according to the impairment test results, which is in line with the accounting standards for business enterprises and relevant rules and regulations.
This asset write off complies with and complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company. This asset write off does not involve the company’s related parties. The basis for asset write off is sufficient and reasonable, and there is no damage to the interests of the company and all shareholders, especially minority shareholders.
The board of directors approved the company’s provision for asset impairment and asset write off.
(II) opinions of the board of supervisors
The company’s provision for asset impairment this time complies with the relevant provisions of the accounting standards for business enterprises and the company’s accounting system. The basis is sufficient and the procedures are legal, which is conducive to a more true and fair reflection of the company’s financial situation, and there is no damage to the interests of the company and all shareholders, especially small and medium-sized shareholders.
The current write off of assets of the company complies with the accounting standards for business enterprises and relevant accounting policies of the company, conforms to the actual situation of the company and has sufficient basis; The decision-making procedures comply with relevant laws, regulations and the articles of Association; This asset write off does not involve the company’s related parties.
The board of supervisors agreed to withdraw the provision for asset impairment and write off of assets.
(III) opinions of independent directors
The provision for asset impairment is made in accordance with the accounting standards for business enterprises and relevant accounting policies of the company. After the company has made provision for asset impairment, the financial statements can more truly and fairly reflect the company’s asset status and operating results, making the company’s accounting information about assets more reliable. The decision-making procedure for withdrawing the provision for asset impairment this time complies with the relevant provisions of relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and shareholders, especially the interests of minority shareholders.
The current asset write off of the company complies with the provisions of the accounting standards for business enterprises and relevant systems of the company. The asset write off does not involve related parties of the company, and the basis is sufficient and reasonable. The decision-making procedures of the company’s asset write off this time comply with relevant laws and regulations, the articles of association and other relevant provisions, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders.
The independent directors agree with the company’s provision for asset impairment and asset write off.
The provision for asset impairment and asset write off fully refer to the audit opinions of the annual audit institution and have been recognized by the annual audit institution.
5、 Documents for future reference
1. Resolution of the 16th meeting of the 7th board of directors
2. Resolution of the 10th meeting of the 7th board of supervisors
3. Independent directors’ opinions on impairment provision and write off of assets.
Zhejiang Founder Motor Co.Ltd(002196) board of directors
April 15, 2022
