Stock Code: Jinhe Biotechnology Co.Ltd(002688) stock abbreviation: Jinhe Biotechnology Co.Ltd(002688) Announcement No.: 2022015 Jinhe Biotechnology Co.Ltd(002688)
Announcement on the provision for asset impairment
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.
In order to truly reflect the company’s financial situation and operating results, in accordance with the accounting standards for business enterprises, the company’s accounting policies, accounting estimates and other relevant provisions, the company has conducted impairment tests on various assets within the scope of consolidated statements by the end of 2021, and made corresponding impairment reserves for assets with signs of impairment. Based on the principle of prudence, the provision for asset impairment of relevant assets is 2364948523 yuan in total.
1、 Overview of the provision for asset impairment this time
1. Reasons for withdrawing provision for asset impairment
In accordance with the requirements of the accounting standards for business enterprises and the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, in order to more truly and accurately reflect the company’s asset status and operating results as of December 31, 2021, the company and its subsidiaries conducted a comprehensive inventory of inventory, accounts receivable, fixed assets, construction in progress, intangible assets, goodwill and other assets at the end of 2021. Based on the inventory, the net realizable value of various inventories, the possibility of recovery of accounts receivable, and the recoverable amount of fixed assets, construction in progress, intangible assets and goodwill are fully analyzed and evaluated, and the impairment provision is made for the assets that may have asset impairment losses.
2. The asset scope, total amount and reporting period of the current provision for asset impairment
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test on the assets with possible signs of impairment at the end of 2021, including inventories, accounts receivable, notes receivable, fixed assets, construction in progress, intangible assets and goodwill, the provision for impairment of various assets in 2021 totaled 2364948523 yuan, as shown in the following table:
Statement of provision for impairment of various assets in 2021
Unit: RMB
Proportion in the absolute value of net profit of shareholders of listed companies from the amount of asset impairment reserves withdrawn from the beginning of the year to the end of the year in 2021
Goodwill 1104459068 11.75%
Inventory 1009361278 10.74%
Accounts receivable 248656377 2.64%
Including: accounts receivable 188062158 2.00%
Other receivables 60594219 0.64%
Notes receivable 2471800 0.03%
Total 2364948523 25.16%
2、 The impact of the current provision for asset impairment on the company
In 2021, the total amount of the company’s provision for asset impairment was 2364948523 yuan. After considering the impact of income tax, the provision for asset impairment this time reduces the net profit attributable to the shareholders of the listed company by 1974228321 yuan in 2021 and the owner’s equity attributable to the shareholders of the listed company by 1974228321 yuan at the end of 2021.
3、 Specific description of individual provision for asset impairment
1. Provision for impairment of goodwill
The company hired Beijing zhongtonghua Assets Appraisal Co., Ltd. (hereinafter referred to as “zhongtonghua”) to conduct impairment test on the goodwill formed by the four M & A businesses involved. The goodwill formed by the four M & A businesses are: 1. The goodwill formed by the acquisition of assets by pharmgate Inc. (hereinafter referred to as “pharmgate”); 2. Famavi acquires biology lnc Goodwill formed; 3. The goodwill formed by Jinhe Youben Biological Products Co., Ltd. (hereinafter referred to as “Jinhe Youben”) acquiring Hangzhou Youben animal vaccine Co., Ltd. (hereinafter referred to as “Hangzhou Youben”); 4. Jinhe Biotechnology Co.Ltd(002688) (hereinafter referred to as ” Jinhe Biotechnology Co.Ltd(002688) “) acquired the goodwill formed by Jinhe muxing (Chongqing) Biotechnology Co., Ltd. (hereinafter referred to as “muxing Chongqing”). The assets involved in goodwill include fixed assets, construction in progress and intangible assets constituting the asset group (CGU). On March 22, 2022, zhongtonghua issued the asset evaluation report of the recoverable amount evaluation project related to goodwill formed by the merger and acquisition of Penfield oil company by pharmgate Inc. involved in Jinhe Biotechnology Co.Ltd(002688) proposed goodwill impairment test (zhongtonghua pingbao Zi [2022] No. 060273) Asset evaluation report of the project of evaluating the recoverable amount of the asset group related to goodwill formed by pharmgate Inc. due to the merger and acquisition of pharmgate biology Inc. involved in Jinhe Biotechnology Co.Ltd(002688) proposed goodwill impairment test (Zhong Tong Hua Ping Bao Zi [2022] No. 060274) Asset evaluation report of the project of Jinhe Biotechnology Co.Ltd(002688) proposed goodwill impairment test involving the recoverable amount of the asset group related to goodwill formed by the merger and acquisition of Hangzhou Youben animal vaccine Co., Ltd. (zthpbz [2022] No. 060251) Asset evaluation report of the project of Jinhe Biotechnology Co.Ltd(002688) proposed goodwill impairment test involving the assessment of recoverable amount of asset group related to goodwill formed by merger and acquisition of Jinhe muxing (Chongqing) Biotechnology Co., Ltd. (zthpbz [2022] No. 060252).
The appraisal report evaluates the asset groups as of December 31, 2021. The recoverable amount of each asset group is 340194600 yuan, 317554500 yuan, 616 million yuan and 70.1 million yuan respectively by using the discounted expected future net cash flow method. Based on the assessed value, the company conducted an impairment test on the goodwill involved. After the test, biology lnc The recoverable amount of the impairment provision is lower than the book value of the goodwill group. The details are as follows:
Book value of goodwill ① 11145864213
Unrecognized goodwill value attributable to minority shareholders’ equity ②
Including the value of goodwill not recognized as belonging to minority shareholders’ equity ③ = ① + ② 11145864213
Book value of asset group ④ 21701270385
Book value of asset group including overall goodwill ⑤ = ③ + ④ 32847134598
Recoverable amount ⑥ 31755448990
Provision for impairment of goodwill ⑦ 1091685608
Infamawi and biologics lnc Both use US dollars as the bookkeeping base currency, so the provision for goodwill impairment is US $171226000. Due to different conversion exchange rates, there is a certain difference between the amount included in profit and loss and the amount included in assets during the conversion of consolidated statements.
2. Inventory falling price reserves
Name of depreciation reserves: inventory depreciation reserves
The book balance is 58845096169 yuan
The recoverable amount of assets is 57835734891 yuan
At the end of the period, inventories shall be measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, the inventory falling price reserves shall be withdrawn according to the difference and included in the current profit and loss. The net realizable value of the inventory is the estimated selling price of the inventory minus the cost to be incurred at the time of completion, the estimated selling expenses, the calculation process of the recoverable amount of assets and the estimated relevant taxes.
Determination of estimated selling price: for inventory goods with contracts, the company will directly take the signed contract price as the estimated selling price when confirming the future estimated selling price at the end of the period; For the inventory goods that have not signed the contract, the company takes the sales price that has occurred at the latest time point as the estimated sales price.
According to the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, the basis for withdrawing the provision for asset impairment in this period. After a comprehensive inventory of the inventory is carried out, the provision for inventory falling price shall be withdrawn or adjusted according to the lower of the cost and net realizable value of the inventory.
The cumulative amount withdrawn this year is 1009361278 yuan
It is mainly due to the fact that the net realizable value of some inventory companies, such as products, raw materials and revolving materials, is lower than their book value according to the company’s production and sales plan.
3. Bad debt provision
According to the accounting standards for business enterprises and relevant accounting policies of the company, the company estimates the expected credit loss of receivables and notes receivable in a single or combined manner, and accrues bad debt reserves.
If there is objective evidence indicating that a certain receivable or note receivable has been impaired, the company shall make provision for impairment of the asset on a single basis. When the information of expected credit loss cannot be evaluated at a reasonable cost for individual accounts receivable or notes receivable, the company divides the accounts receivable or notes receivable into several combinations according to the characteristics of credit risk, and calculates the expected credit loss on the basis of the combination. For the accounts receivable or notes receivable classified into risk portfolio, 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 according to the aging of accounts receivable, the expected credit loss rate of commercial acceptance bills and the whole duration.
According to the above standards, the company accrued 248656377 yuan of bad debt provision for accounts receivable, including 188062158 yuan of bad debt provision for accounts receivable, accounting for 0.52% of the book balance of accounts receivable at the end of the period; The bad debt provision for other receivables was 60594219 yuan, accounting for 4.05% of the book balance of other receivables at the end of the period. The company has withdrawn 2471800 yuan of bad debt provision for notes receivable, accounting for 0.03% of the book balance of notes receivable at the end of the period.
(b) audit.
It is hereby announced.
