Securities code: Beijing Unistrong Science & Technology Co.Ltd(002383) securities abbreviation: Beijing Unistrong Science & Technology Co.Ltd(002383) Announcement No.: 2022010 Beijing Unistrong Science & Technology Co.Ltd(002383)
Announcement on the provision for asset impairment and write off of assets 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.
1、 Overview of the provision for asset impairment and asset write off this time
1. Reasons for withdrawing asset impairment provision this time
According to the relevant provisions of the accounting standards for business enterprises, the company comprehensively checked the accounts receivable, other accounts receivable, inventory, intangible assets, long-term equity investment, goodwill and other related assets of the company and its subsidiaries as of December 31, 2021 on the balance sheet date, and fully analyzed and evaluated the signs of impairment of the value of relevant assets. After the impairment test, it is considered that some of the above assets have certain signs of impairment. Based on the principle of prudence, the provision for asset impairment is withdrawn for relevant assets that may have asset impairment losses.
2. Current asset write off
In accordance with the accounting standards for business enterprises, the articles of association, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and other relevant provisions, in order to truly reflect the company’s financial situation, the company follows the principles of compliance according to law, objectivity, examination and approval one by one and account cancellation case filing, and the company will write off the accounts receivable of which the assets with provision for asset impairment have become factual losses.
2、 The asset scope, total amount and reporting period to be included in the provision for asset impairment this time
After a comprehensive inventory and asset impairment test of the company and its subsidiaries’ accounts receivable, other accounts receivable, inventory, intangible assets, long-term equity investment, goodwill and other related assets, the company plans to withdraw a total of Gosuncn Technology Group Co.Ltd(300098) million yuan of asset impairment reserves. Details are as follows:
Asset Name: the proportion of impairment provision to be withdrawn in 2021 attributable to listed companies
Amount (10000 yuan) proportion of shareholders’ net profit
Impairment loss of long-term equity investment 925557 – 99.84%
Goodwill impairment loss 860568 – 92.83%
Impairment loss of inventory and contract performance cost 532327 – 57.42%
Impairment loss of intangible assets 275956 – 29.77%
Bad debt loss of long-term receivables 261923 – 28.25%
Provision for impairment of fixed assets 183336 – 19.78%
Bad debt loss of other receivables 683.63 – 7.37%
Provision for impairment of contract assets 433.04 – 4.67%
Impairment loss of development expenditure 357.09 -3.85%
Bad debt loss of notes receivable 36.23 -0.39%
Bad debt loss of accounts receivable -189685 20.46%
Total 3 Zotye Automobile Co.Ltd(000980) – 323.71%
1. Goodwill
At the end of 2021, in accordance with the relevant provisions on the treatment of goodwill impairment in the accounting standards for Business Enterprises No. 8 – asset impairment and the requirements of the accounting regulatory risk tip No. 8 – goodwill impairment issued by the CSRC, the company hired an asset evaluation institution with securities business qualification to conduct a preliminary calculation of goodwill impairment.
The company hired Beijing Asia Pacific Lianhua Assets Appraisal Co., Ltd. to evaluate Guangzhou Zhongke Yatu Information Technology Co., Ltd., Shanghai Titan Communication Engineering Co., Ltd., Guangzhou situoli surveying and Mapping Technology Co., Ltd., Beijing Beijing Unistrong Science & Technology Co.Ltd(002383) spatiotemporal IOT Technology Co., Ltd., Heilongjiang nongkentong information and Communication Co., Ltd., Changchun Tiancheng Technology Development Co., Ltd., Wuhan Beijing Unistrong Science & Technology Co.Ltd(002383) e-commerce Co., Ltd Xi’an Beijing Unistrong Science & Technology Co.Ltd(002383) Telecom Communication Co., Ltd., Wuxi Jingliang Smart City Technology Co., Ltd., Guangzhou Jiou Electronic Technology Co., Ltd., Suzhou Yiguang Information Technology Co., Ltd., Xi’an Beijing Unistrong Science & Technology Co.Ltd(002383) Defense Technology Co., Ltd., hemisphere GNSS Inc. and stonex S.R.L. conducted goodwill impairment test and evaluation for the purpose of goodwill asset group. The recoverable amount of the asset group related to goodwill is determined by the present value of the estimated future cash flow according to the cash flow forecast based on the five-year financial budget approved by the management. The discount rate used for cash flow forecast is 9.90% ~ 16.38%. Assumptions are used to calculate the present value of the estimated future cash flow of the relevant asset group as of December 31, 2021. The following details the key assumptions made by the management in determining the cash flow forecast in order to conduct the impairment test of Goodwill:
Revenue growth – the basis for determining is to maintain the corresponding growth rate according to the expected market demand and its own business development and marketing strategy based on the revenue growth rate achieved in the year before the budget year and in history.
Budget gross profit – the basis for determining is to determine the predicted gross profit based on the historical annual gross profit margin of the company’s products before the budget year.
Discount rate – the adopted discount rate is the pre tax discount rate that reflects the specific risks of the relevant asset group.
The amount of key assumptions allocated to the above asset groups or asset group combinations is consistent with the group’s historical experience and external information. After calculation, the company found that 9 asset groups including Guangzhou Zhongke Yatu Geographic Information Technology Co., Ltd. (hereinafter referred to as “Zhongke Yatu”), Shanghai Titan Communication Engineering Co., Ltd. (hereinafter referred to as “Titan communication”), Beijing Beijing Unistrong Science & Technology Co.Ltd(002383) spatiotemporal IOT Technology Co., Ltd. (hereinafter referred to as “Beijing spatiotemporal IOT”) had goodwill impairment risk.
It is estimated that the amount of goodwill impairment accrued in 2021 will be about 860568 million yuan. The details are as follows:
Name of investee: original value of goodwill at the beginning of the period impairment withdrawn in the current period net value of goodwill at the end of the period
Guangzhou zhongkeyatu 536721547476753307125078387288828
Changchun Tiancheng Technology 1053778 – 424.91 424.911011287
Beijing space time IOT 974457435828210150645978328479
Shanghai Titan communication 750933578598172335750933-
Guangzhou situoli surveying and mapping 570381521113 492.68570381-
Heilongjiang nongkentong 636.54 480.03 156.52 636.54-
Wuhan e-commerce 53.42 – 53.42 53.42-
Xi’an Telecom 573.34 – 91.43 91.43 481.91
Wuxi Jingliang 434.34 179.59 254.75 434.34-
Total 8886527698882086056878149711676784
2. Long term equity investment
At the end of 2021, the company hired an evaluation agency to conduct a preliminary evaluation on the operation of the joint-stock company.
The investee withdraws the impairment provision and the book value of the investment
Beidou Navigation Technology Co., Ltd. 800000-
Beidou navigation location service (Beijing) Co., Ltd. 117218502276
Unistrong Japan 83.39 –
Total 925557502276
As the business development of Beidou Navigation Technology Co., Ltd., a joint-stock company, did not meet expectations, there was great uncertainty in its sustainable operation ability. According to the relevant provisions of the accounting standards for business enterprises, the company assesses and judges that there are signs of impairment of long-term equity investment, and in line with the principle of prudence, accrues an impairment provision of 80 million yuan.
According to the valuation results of the appraisal institution, the impairment of Beidou navigation location service (Beijing) Co., Ltd. is RMB 117218 million.
3. Inventory and contract performance costs
According to the inventory accounting policy, the company shall measure according to the lower of cost and net realizable value, and re estimate whether various inventories of different product lines and models are old and unsalable, and whether the net realizable value is lower than the inventory cost on the balance sheet date. The preliminary assessment shows that some inventories of the company have impairment risk, mainly due to the following reasons:
The company released tianqin second generation Beidou No.3 GNSS baseband chip in May 2019. At the end of 2019, OEM modules and boards based on tianqin second generation chip gradually began mass production. With the completion of beidou-3 networking in July 2020 and the formal provision of services to the world, the company complies with the trend of market competition and upgrades the high-precision finished products of the whole line to products based on tianqin second-generation chip technology, so as to fully support the application of beidou-3 and participate in market competition. In addition to supporting Beidou 3, the cost and power consumption of the new generation of products are further reduced, and the leading technology and technology are significantly improved. Due to the upgrading of new technologies and products, the inventory of some products of the previous generation is sluggish.
Based on the above reasons, the company, out of consideration of prudence, made a provision for inventory falling price of 53 million yuan for the replenishment of obsolete inventory products and their raw materials and accessories caused by technical renewal iteration.
4. Receivables and contract assets
In 2021, there was no significant change in the company’s industrial policies and customer credit and credit policies. The changes in the aging structure of the company’s receivables and contract assets and the corresponding provision for bad debts are as follows:
Project bad debt asset balance
Increase of accrual proportion at the end of 2021 and 2020
1. Individual withdrawal 2993430005 0%
2. Nature combination provision 3% 2325927788 – 16%
3. Accrue 1 Zhejiang Jindun Fans Co.Ltd(300411) 36866 – 5% by aging
(1) Within 1 year 3% 1155301105604%
(2) 1-2 years 19% 353315088 – 77%
(3) 2-3 years 46% 29254430 – 34%
(4) 3-4 years
