Bomin Electronics Co.Ltd(603936) : Bomin Electronics Co.Ltd(603936) announcement on the provision for asset impairment in 2021

Securities code: Bomin Electronics Co.Ltd(603936) securities abbreviation: Bomin Electronics Co.Ltd(603936) Announcement No.: pro 2022028 Bomin Electronics Co.Ltd(603936)

Announcement on the provision for asset impairment in 2021

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Bomin Electronics Co.Ltd(603936) (hereinafter referred to as “the company”) convened the 18th meeting of the 4th board of directors and the 16th meeting of the 4th board of supervisors on April 14, 2022, deliberated and adopted the proposal on the company’s provision for asset impairment in 2021. The relevant information is hereby announced as follows:

1、 Provision for impairment of current assets

In accordance with the accounting standards for business enterprises and relevant accounting policies of the company, in order to more truly and accurately reflect the financial status, asset value and operating results of the company as of December 31, 2021, the company and its subsidiaries conducted a comprehensive inventory and analysis of accounts receivable, fixed assets and other assets at the end of 2021, and fully analyzed and evaluated the net realizable value of accounts receivable and fixed assets, Relevant assets with signs of impairment as of December 31, 2021 shall be provided with corresponding impairment reserves. In 2021, a total of 173336 million yuan of credit impairment loss and 525132 million yuan of asset impairment loss were withdrawn. The details are as follows:

Unit: Yuan

Amount incurred in 2021

Bad debt loss of accounts receivable 1714448471

Bad debt loss of other receivables 652598

Bad debt loss of notes receivable 62821266 credit impairment loss

Bad debt loss of long-term receivables -17720000

Bad debt loss of non current assets due within one year -26837974

Subtotal 1733364361

Impairment loss of prepayments 3102190894

Asset impairment loss inventory impairment loss 2149129308

Subtotal 5251320202

Total 6984684563

Note: negative amount of impairment indicates reversal.

2、 Impact of the current provision for asset impairment on Listed Companies

The provision for impairment of various assets of the company in 2021 totaled 698468 million yuan, reducing the net profit attributable to the shareholders of the listed company in 2021 by 593698 million yuan, and correspondingly reducing the owner’s equity attributable to the shareholders of the listed company in 2021 by 593698 million yuan. The company’s provision for asset impairment has been audited by an accounting firm.

3、 Review opinions of the board of directors

The board of Directors believes that the company’s provision for asset impairment this time is conducive to a more true, accurate and fair reflection of the company’s assets and financial conditions, making the company’s accounting information on asset value more authentic and reliable, in line with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, reasonable and free from any damage to the interests of the company and all shareholders.

According to the relevant provisions of the Listing Rules of Shanghai Stock Exchange, the provision for asset impairment of the company does not need to be submitted to the general meeting of shareholders for deliberation.

4、 Opinions of the audit committee of the board of directors, independent directors and the board of supervisors of the company

(I) opinions of the audit committee of the board of directors of the company

After verification, the audit committee of the board of directors of the company believes that the provision for asset impairment of the company complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. It is made based on the principle of prudence after the asset impairment test. The basis is sufficient, reflects the principle of accounting prudence, and conforms to the actual situation of the company, It objectively and fairly reflects the company’s operating results in 2021 and the asset value as of December 31, 2021, making the company’s accounting information more reasonable. We agree with the company’s provision for asset impairment this time and agree to submit it to the board of directors for deliberation.

(II) audit opinions of independent directors

The independent directors believe that the company’s provision for asset impairment is based on sufficient basis, has performed the corresponding approval procedures, and complies with the provisions of the accounting standards for business enterprises and the company’s relevant accounting policies. After the company’s provision for asset impairment, it can fairly reflect the company’s asset status, which is in line with the interests of the company and all shareholders. We agree with the company’s provision for asset impairment this time.

(III) review opinions of the board of supervisors

The board of supervisors believes that the provision for asset impairment of the company this time complies with the provisions of relevant accounting policies such as the accounting standards for business enterprises and the actual situation of the company’s assets, and the review procedure is legal and based on sufficient basis. After this withdrawal, the company’s financial situation and operating results are fairly reflected. We agree with the company’s provision for asset impairment this time. It is hereby announced.

Bomin Electronics Co.Ltd(603936) board of directors April 18, 2022

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