Securities code: Nuode Investment Co.Ltd(600110) securities abbreviation: Nuode Investment Co.Ltd(600110) Announcement No.: pro 2022058
Nuode Investment Co.Ltd(600110)
Announcement on the provision for asset impairment
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.
Important content tips:
The proposed provision for asset impairment is 7189715408 yuan (audited), which is expected to reduce the total profit of the company’s consolidated statements in 2021 by 7189715408 yuan (audited).
According to the accounting standards for business enterprises, the Listing Rules of Shanghai Stock Exchange and the relevant accounting policies of Nuode Investment Co.Ltd(600110) (hereinafter referred to as ” Nuode Investment Co.Ltd(600110) ” or “the company”), the specific situation is announced as follows.
1、 Provision for impairment of assets
According to the accounting standards for business enterprises and relevant provisions of the company’s accounting policies, the company has conducted a comprehensive inventory of assets by the end of 2021, fully evaluated and analyzed the net realizable value and recoverable amount of various assets, and made provision for impairment of assets that may have impairment losses. After the impairment test, the company has accrued 718972 million yuan of asset impairment reserves in the current period, including 5.3965 million yuan of credit impairment loss and 665007 million yuan of asset impairment loss.
1. Credit impairment loss
The company evaluates the credit risk of financial assets with significantly different credit risks, such as accounts receivable from related parties; Receivables in dispute with the other party or involving litigation and arbitration; Receivables that have obvious signs that the debtor is likely to be unable to perform its repayment obligations. In addition to the financial assets that individually assess the credit risk, the company divides the financial assets into different groups based on the common risk characteristics. The company divides the notes receivable and accounts receivable into different combinations according to the credit risk characteristics, and evaluates the credit risk on the basis of the combination. According to the test, in 2021, the company accrued, reversed and written off the bad debt reserves of receivables of RMB 5.3965 million.
2. Asset impairment loss
(1) Inventory falling price reserves: according to the accounting standards for business enterprises and the company’s accounting policies, the company divides the inventory into raw materials, goods in stock, goods delivered and other detailed items for impairment test on the balance sheet date, and measures it according to the lower of the cost and net realizable value of the inventory. When the net realizable value is lower than the cost, the inventory falling price reserves are accrued. The company accrued 7.3827 million yuan of inventory falling price reserves in 2021.
(2) Provision for impairment of fixed assets: according to the accounting standards for business enterprises and the company’s accounting policies, the company will withdraw the provision for impairment of fixed assets if the recoverable amount of fixed assets is lower than its book value on the balance sheet date. Through the technical transformation and upgrading of the subsidiary Qinghai Electronic Materials Industry Development Co., Ltd., some equipment can not meet the production of products required by the existing market, and the company has accrued asset impairment reserves for some equipment. The company made provision for impairment of fixed assets of 588297 million yuan in 2021.
(3) Provision for impairment of contract assets: according to the accounting standards for business enterprises and the company’s accounting policies, the company assesses the credit risk of contract assets on the balance sheet date. The impairment provision of the company’s contract assets is RMB 20.21 million in the year.
2、 The impact of the current provision for asset impairment on the company
In 2021, the company made provision for impairment of various assets totaling 718972 million yuan, reducing the total profit of consolidated statements in 2021 by 718972 million yuan.
3、 Opinions of the board of directors on the company’s provision for asset impairment
The board of Directors believes that the company’s provision for asset impairment based on the accounting standards for business enterprises, the company’s accounting policies and other relevant provisions, based on the principle of prudence, in combination with the company’s assets and actual operating conditions, has sufficient basis, and the provision for asset impairment can more fairly reflect the company’s assets and financial status at the end of the reporting period.
4、 Opinions of the board of supervisors on the company’s provision for asset impairment
The board of supervisors believes that the company’s provision for asset impairment in accordance with the accounting standards for business enterprises, the company’s accounting policies and other relevant provisions is in line with the actual situation of the company, and the provision for asset impairment can more fairly reflect the assets and financial status of the company. The decision-making procedure of the board of directors of the company for considering the proposal complies with the relevant provisions of laws and regulations, and agrees that the company shall withdraw the provision for asset impairment in 2021.
5、 Independent opinions of independent directors on the company’s provision for asset impairment
The independent directors believe that the company’s provision for asset impairment this time is based on the principle of prudence, in line with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, can objectively and fairly reflect the company’s financial status and operating results, help to provide investors with more authentic, reliable and accurate accounting information, and there is no situation that damages the interests of the company and all shareholders. The decision-making procedure for withdrawing the provision for asset impairment this time complies with the relevant provisions of laws, regulations and the articles of association. It is agreed that the company shall make provision for asset impairment in 2021.
6、 Opinions of the Audit Committee on the company’s provision for asset impairment
The Audit Committee believes that the company’s provision for asset impairment this time is based on the principle of prudence, with sufficient basis and in line with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies. After the provision for asset impairment is made, it can fairly reflect the company’s financial situation, asset value and operating results, so as to make the company’s accounting information more reasonable. It is agreed that the company shall make provision for asset impairment in 2021.
7、 Risk tips
The company will timely perform the obligation of information disclosure according to the progress of the subsequent events. The amount of this provision for asset impairment is the audited result of the company. Please refer to the audited 2021 annual report disclosed by the company for specific data. Please pay attention to the investment risk.
It is hereby announced.
Nuode Investment Co.Ltd(600110) board of directors April 19, 2022
