Securities code: Sunshine Global Circuits Co.Ltd(300739) securities abbreviation: Sunshine Global Circuits Co.Ltd(300739) Announcement No.: 2022040 bond Code: 123087 bond abbreviation: Mingdian convertible bond
Sunshine Global Circuits Co.Ltd(300739)
Announcement on the provision for asset impairment in 2021
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
In accordance with the accounting standards for business enterprises, self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 - standardized operation of companies listed on GEM and other relevant provisions, based on the principle of prudence, in order to truly and accurately reflect the company's financial, assets and operating conditions, Sunshine Global Circuits Co.Ltd(300739) (hereinafter referred to as "the company" or " Sunshine Global Circuits Co.Ltd(300739) ") on the accounts receivable, other receivables and The possibility of impairment of inventories, fixed assets and other assets shall be fully evaluated and analyzed, the signs of possible impairment shall be judged, and the impairment reserves to be withdrawn shall be determined.
According to the relevant laws and regulations such as the Listing Rules of Shenzhen Stock Exchange gem and the articles of association, the provision for impairment loss does not need to be submitted to the board of directors or the general meeting of shareholders for deliberation. Now, the relevant matters of the company's provision for asset impairment in 2021 are announced as follows:
1、 Overview of the provision for asset impairment this time
(I) reasons for withdrawing asset impairment provision this time
In order to truly reflect the company's financial situation and operating results, the company conducted impairment test on the assets of the company and its subsidiaries in 2021 within the scope of consolidated financial statements in accordance with the accounting standards for Business Enterprises No. 8 - asset impairment and the principle of prudence, and determined the asset items for which impairment provision is required.
(II) scope and amount of provision for asset impairment this time
In 2021, the company and its subsidiaries accrued various impairment reserves totaling 4057459029 yuan. The project details are as follows:
Unit: Yuan
Accrued amount of the project in the current period
1、 Credit impairment loss 971328727
Including: bad debt loss of accounts receivable 825 Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284)
Bad debt loss of other receivables 146326443
2、 Asset impairment loss 3086130302
Including: inventory falling price loss 3034935873
Impairment loss of fixed assets 51194429
Total 4057459029
(III) approval procedures for the provision for asset impairment this time
The provision for impairment is made in accordance with the relevant provisions of the accounting standards for business enterprises and the company's accounting policies, and does not need to be submitted to the company's board of directors for deliberation.
2、 Recognition standard and withdrawal method of impairment provision this time
1. Accounts receivable: for accounts receivable, regardless of whether it contains major financing components or not, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration. The increase or reversal amount of the loss reserves thus formed is included in the current profit and loss as impairment loss or profit.
2. Other receivables: for other receivables, the company will use the amount equivalent to the expected credit loss in the next 12 months or the whole duration to withdraw the impairment loss according to whether the credit risk of other receivables has increased significantly since the initial recognition.
3. Inventories: on the balance sheet date, inventories shall be measured at the lower of cost and net realizable value. When the cost of inventory is higher than its net realizable value, provision for inventory falling price shall be made. After the provision for inventory falling price is made, if the factors affecting the previous write down of inventory value have disappeared, resulting in the net realizable value of inventory being higher than its book value, it shall be reversed from the amount of inventory falling price provision that has been made, and the reversed amount shall be included in the current profit and loss. 4. Fixed assets: long-term equity investment, investment real estate measured by cost mode, fixed assets, construction in progress, intangible assets with limited service life and other long-term assets. If there are signs of impairment on the balance sheet date, impairment test shall be carried out. If the impairment test results show that the recoverable amount of the asset is lower than its book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss. The recoverable amount is 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.
3、 Explanation of the rationality of the provision for asset impairment and its impact on the company
(I) rationality description
The company's provision for impairment in 2021 complies with the principle of prudence, the provisions of the accounting standards for business enterprises and relevant accounting policies of the company and the actual situation of the company's assets. The provision method and decision-making procedure are legal and compliant. After the provision for impairment is made this time, the company's 2021 financial statements can fairly reflect the financial situation and operating results as of 2021, which is helpful to provide investors with more authentic, reliable and accurate accounting information.
(II) impact on the company
The company's impairment provision of 4057459029 yuan in this reporting period will reduce the company's total profit of 4057459029 yuan in this reporting period. The above data have been audited by an accounting firm.
It is hereby announced.
Sunshine Global Circuits Co.Ltd(300739) board of directors April 21, 2022
