Securities code: Tongxing Environmental Protection Technology Co.Ltd(003027) securities abbreviation: Tongxing Environmental Protection Technology Co.Ltd(003027) Announcement No.: 2022021 Tongxing Environmental Protection Technology Co.Ltd(003027)
Announcement on the provision for asset impairment 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 this time
(I) reasons for withdrawing provision for asset impairment
In accordance with the accounting standards for business enterprises, the stock listing rules of Shenzhen Stock Exchange, the self regulatory guide for listed companies of Shenzhen Stock Exchange No. 1 - business handling and other relevant provisions, in order to truly and accurately reflect the company's financial status, asset value and operating results, and in accordance with the principle of prudence, the company has checked all kinds of assets as of December 31, 2021 and conducted impairment test on relevant assets, The corresponding provision for asset impairment shall be withdrawn in accordance with the provisions.
(II) specific conditions of provision for asset impairment
The provision for impairment of the company and its subsidiaries within the scope of consolidation in 2021 totaled 224434 million yuan, as follows:
Unit: 10000 yuan
Project / asset Name: accrued amount in 2021
Credit impairment loss -169595, including: notes receivable -49.02 accounts receivable -161469 other receivables -32.23 asset impairment loss -548.39, including: contract assets -548.39 total -224434
(III) accounting period to be included
The above estimated impairment provision is included in the profit and loss of the company from January 1, 2021 to December 31, 2021.
2、 Description of the current provision for asset impairment
The company recognizes the loss reserves on the basis of expected credit losses for financial assets measured at amortized cost, debt instrument investments measured at fair value and whose changes are included in other comprehensive income, contract assets, lease receivables and financial guarantee contracts.
① Measurement of expected credit loss
Expected credit loss refers to the weighted average value of credit loss of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be received by the company discounted at the original effective interest rate, that is, the present value of all cash shortages. Among them, the financial assets purchased or originated by the company with credit impairment shall be discounted according to the actual interest rate adjusted by the credit of the financial assets.
Expected credit loss in the whole duration refers to the expected credit loss caused by all possible events of default in the whole expected duration of financial instruments.
The expected credit loss in the next 12 months refers to the expected credit loss caused by the possible default of financial instruments within 12 months after the balance sheet date (if the expected duration of financial instruments is less than 12 months, it is the expected duration), which is a part of the expected credit loss in the whole duration.
On each balance sheet date, the company measures the expected credit losses of financial instruments in different stages. If the credit risk of the financial instrument has not increased significantly since the initial recognition, it is in the first stage, and the company measures the loss reserves according to the expected credit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since its initial recognition, but there is no credit impairment, it is in the second stage. The company measures the loss provision according to the expected credit loss of the whole duration of the instrument; If a financial instrument has been impaired since its initial recognition, it is in the third stage. The company measures the loss provision according to the expected credit loss of the whole duration of the instrument.
For financial instruments with low credit risk on the balance sheet date, the company assumes that its credit risk has not increased significantly since initial recognition, and measures the loss provision according to the expected credit loss in the next 12 months.
For the financial instruments in the first and second stages and with low credit risk, the company calculates the interest income according to the book balance and effective interest rate without deducting the impairment provision. For the financial instruments in the third stage, the interest income shall be calculated according to the book balance minus the amortized cost after the provision for impairment and the effective interest rate.
For notes receivable, accounts receivable, accounts receivable financing and contract assets, whether there is a major financing component or not, the company measures the loss reserves according to the expected credit loss throughout the duration.
A. Receivables / contract assets
For the notes receivable, accounts receivable, other receivables, accounts receivable financing, contract assets and long-term receivables that have objective evidence of impairment and are suitable for 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 a single financial asset cannot evaluate the information of expected credit loss at a reasonable cost, the company divides notes receivable, accounts receivable, other receivables, accounts receivable financing, contract assets and long-term receivables into several combinations according to the characteristics of credit risk, The expected credit loss is calculated on the basis of the combination, and the basis for determining the combination is as follows:
(a) The basis for determining the combination of notes receivable is as follows:
Bill receivable Portfolio 1: commercial acceptance bill
Bill receivable portfolio 2: bank acceptance bill
For bills receivable divided into portfolios, the company refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, and calculates the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration.
(b) The basis for determining the combination of accounts receivable is as follows:
Accounts receivable Portfolio 1: aging portfolio
Accounts receivable portfolio 2: portfolio of companies within the consolidation scope
For the accounts receivable divided into portfolio, the company refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, prepares the comparison table between the aging of accounts receivable and the expected credit loss rate for the whole duration, and calculates the expected credit loss.
(c) The basis for determining the combination of other receivables is as follows:
Other receivables Portfolio 1: aging portfolio
Other receivables portfolio 2: portfolio of companies within the consolidation scope
For other receivables divided into portfolios, the company refers to the historical credit loss experience, combined with the current situation 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.
(d) The basis for determining the combination of receivables financing is as follows:
Receivables financing Portfolio 1: commercial acceptance bill
Receivables financing portfolio 2: bank acceptance bill
For the receivables financing divided into portfolios, the company refers to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, and calculates the expected credit loss through the default risk exposure and the expected credit loss rate for the whole duration.
(e) The basis for determining the combination of contract assets is as follows:
Contract asset portfolio: aging portfolio
For the contract assets divided into portfolios, the company refers to the historical credit loss experience, combines the current situation and the forecast of future economic conditions, and calculates the expected credit loss through the default risk exposure and the expected credit loss rate throughout the duration.
3、 The impact of the current provision for asset impairment on the company
In 2021, the company made provision for impairment of various assets totaling 224434 million yuan, which will reduce the total profit of the current consolidated statement by 224434 million yuan. The decrease in profit has been reflected in the company's annual financial report in 2021. Comply with the requirements of accounting standards and relevant policies, and there is no behavior damaging the interests of the company and shareholders.
4、 Statement of the audit committee of the board of directors on the reasonableness of the provision for asset impairment
After review, the company's provision for credit and asset impairment this time complies with and complies with the accounting standards for business enterprises and relevant accounting policies of the company. It is made based on the principle of prudence after asset impairment test, and the basis is sufficient. After the provision for asset impairment is made, the company's financial statements can more fairly reflect the company's financial status, asset value and operating results, making the company's accounting information more reasonable. Therefore, we have no objection to this matter.
5、 Explanation of the board of supervisors on the rationality of the company's provision for asset impairment
After verification, the board of supervisors believes that the company's provision for impairment is based on sufficient basis, in line with the provisions of the accounting standards for business enterprises and relevant systems of the company, in line with the actual situation of the company, fairly reflects the asset value and operating results of the company, and does not harm the interests of the company and all shares, especially the minority shareholders. The decision-making procedure of the company on this proposal complies with the relevant provisions of relevant laws and regulations, and the board of supervisors agrees to withdraw the impairment provision this time.
It is hereby announced.
Tongxing Environmental Protection Technology Co.Ltd(003027) board of directors April 19, 2022
