Securities code: Sichuan Etrol Technologies Co.Ltd(300370) securities abbreviation: St security control announcement Code: 2022045 Sichuan Etrol Technologies Co.Ltd(300370)
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.
Sichuan Etrol Technologies Co.Ltd(300370) (hereinafter referred to as "the company") convened the 21st Meeting of the 5th board of directors and the 15th meeting of the 5th board of supervisors on April 21, 2022 to consider and adopt the proposal on withdrawing the provision for asset impairment in 2021. In accordance with the requirements of the accounting standards for business enterprises and the company's accounting policy and other relevant provisions, based on the principle of prudence, in order to more truly and accurately reflect the company's financial situation and operating results, The company made a comprehensive inventory of notes receivable, accounts receivable, other receivables, contract assets, inventories, long-term receivables, fixed assets, intangible assets, goodwill and other assets at the end of 2021, fully evaluated and analyzed the possibility of impairment of various assets and the net realizable value of various inventories, and determined the impairment reserves to be withdrawn. The relevant information is hereby 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, based on the principle of prudence and in accordance with the accounting standards for Business Enterprises No. 8 - asset impairment and the relevant provisions of the company's accounting policies, the company conducted a comprehensive inventory of notes receivable, accounts receivable, other receivables, contract assets, inventories, long-term receivables, fixed assets, intangible assets, goodwill and other assets at the end of 2021 The net realizable value of various inventories has been fully evaluated and analyzed. After analysis, the company needs to withdraw the impairment provision for the above assets that may be impaired.
(II) asset scope and total amount of the current provision for asset impairment
The company made a comprehensive inventory, inventory, analysis and evaluation of assets with possible signs of impairment at the end of 2021 (including notes receivable, accounts receivable, other receivables, contract assets, inventory, non current assets due within one year, long-term receivables, fixed assets, intangible assets and goodwill). Based on the principle of prudence, the company made a total of 415458800 yuan of impairment reserves for the above assets in 2021, The provision for credit impairment is 119931 million yuan and the provision for asset impairment is 2955278 million yuan. The details are as follows:
Unit: 10000 yuan
Changes in the current period
Withdrawal or write off at the beginning of the project or other write off at the end of the period
Notes receivable 927.84 -309.26 618.58
Accounts receivable 192270257984.99
Other receivables 235980253374 195.45 22.72467537
Inventory 334061270962 818.51 0.00523172
Contract assets 227893 -461.79 0.00181714
Non current assets due within one year 674.83319970387453
Long term receivables 141598 -141598 0.00
Long term equity investment 0.00188706188706
Fixed assets 147829 589.05206734
Intangible assets 581.93101759 82.98151654
Goodwill 21059751536144 676.553574464
Other non current assets 0.00844981844981
Total 53400814154588 0.00115753 807.389298178
Note: end of period = beginning of period + accrual - withdrawal or reversal - write off or write off - other
2、 The recognition standard and withdrawal method of the provision for asset impairment this time
(I) accounts receivable
On the basis of expected credit loss, the company conducts impairment treatment and recognizes loss reserves for financial assets measured at amortized cost, debt instrument investment measured at fair value and whose changes are included in other comprehensive income, lease receivables and financial guarantee contracts.
1. 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.
For lease receivables, receivables and contract assets, the company uses a simplified measurement method to measure the loss reserves according to the expected credit loss amount equivalent to the whole duration.
For financial assets and financial guarantee contracts other than the above simplified measurement methods, the company assesses whether their credit risk has increased significantly since initial recognition on each balance sheet date. If the credit risk has not increased significantly since initial recognition and is in the first stage, the company measures the loss reserve according to the amount equivalent to the expected credit loss in the next 12 months, And calculate the interest income according to the book balance and the effective interest rate; If the credit risk has increased significantly since the initial recognition, but there is no credit impairment, in the second stage, the company measures the loss provision according to the amount equivalent to the expected credit loss in the whole duration, and calculates the interest income according to the book balance and the effective interest rate; If credit impairment occurs after initial recognition, in the third stage, the company measures the loss provision according to the amount equivalent to the expected credit loss in the whole duration, and calculates the interest income according to the amortized cost and the effective interest rate. For financial instruments with only low credit risk on the balance sheet date, the company assumes that their credit risk has not increased significantly since initial recognition.
The company assesses the expected credit loss of financial instruments based on individual and combination. Considering the credit risk characteristics of different customers, the company evaluates the expected credit loss of financial instruments measured at amortized cost on the basis of aging combination.
When evaluating the expected credit loss, the company considers the reasonable and reliable information about the past events, current situation and future economic situation forecast.
(1) Judgment criteria for significant increase of credit risk
The company makes use of the available reasonable and based forward-looking information to determine whether the credit risk of financial instruments has increased significantly since the initial recognition by comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.
The company will consider the following factors when assessing whether the credit risk has increased significantly:
Whether the internal price index has changed significantly due to the change of credit risk;
Adverse changes in business, financial or economic conditions that are expected to lead to significant changes in the debtor's ability to perform its debt service obligations;
Whether the actual or expected operating results of the debtor have changed significantly;
Whether the regulatory, economic or technological environment in which the debtor is located has changed significantly;
Whether there is a significant change in the value of collateral as debt collateral or the quality of guarantee or credit enhancement provided by a third party. These changes are expected to reduce the debtor's economic motivation to repay within the period specified in the contract or affect the probability of default;
Whether the economic motivation that is expected to reduce the debtor's repayment according to the time limit agreed in the contract has changed significantly; Expected changes in the loan contract, including whether the expected breach of contract may lead to the exemption or amendment of contractual obligations, the granting of interest free period, the jump of interest rate, the request for additional collateral or guarantee, or other changes to the contractual framework of financial instruments;
Whether the debtor's expected performance and repayment behavior have changed significantly;
Whether the contract payment is overdue for more than (including) 30 days.
(2) Definition of financial assets with credit impairment
When one or more events that the company expects to have an adverse impact on the future cash flow of financial assets occur, the financial assets become financial assets with credit impairment. The evidence of credit impairment of financial assets includes the following observable information:
Significant financial difficulties of the issuer or debtor;
The debtor violates the contract, such as default or overdue payment of interest or principal;
The creditor gives concessions that the debtor will not make under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulties;
The debtor is likely to go bankrupt or carry out other financial restructuring;
The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial assets;
Purchase or source a financial asset at a substantial discount, which reflects the fact that a credit loss has occurred.
(3) Determination of expected credit loss
The company determines the expected credit loss of relevant financial instruments according to the following methods:
For financial assets, the credit loss is the present value of the difference between the contract cash flow to be received by the company and the expected cash flow to be received;
For lease receivables, the credit loss is the present value of the difference between the contract cash flow to be received by the company and the expected cash flow to be received;
The difference between the estimated book value of the asset or the actual interest rate of the financial liability on the date of impairment is not the difference between the current value of the asset or the actual interest rate of the financial liability on the date of impairment.
The factors reflected in the company's method of measuring the expected credit loss of financial instruments include: the unbiased probability weighted average amount determined by evaluating a series of possible results; Time value of money; Reasonable and reliable information about past events, current situation and forecast of future economic conditions that can be obtained at the balance sheet date without unnecessary additional costs or efforts.
(4) Write down of financial assets
When the company no longer reasonably expects that the contractual cash flow of financial assets can be recovered in whole or in part, the book balance of the financial assets shall be written down directly. This write down constitutes the derecognition of relevant financial assets.
2. Accounts receivable portfolio
For the notes receivable, accounts receivable, other receivables, accounts receivable financing 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 and long-term receivables without objective evidence of impairment, or when the information of expected credit loss cannot be evaluated at a reasonable cost for a single financial asset, the company divides notes receivable, accounts receivable, other receivables, accounts receivable financing and long-term receivables into several combinations according to the characteristics of credit risk, and calculates the expected credit loss on the basis of the combination, The basis for determining the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Combination 1: bank acceptance bill
Combination 2: commercial 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. Among them, there is no need to withdraw bad debt provision for bank acceptance bills; The bad debt provision of commercial acceptance bill shall be withdrawn at the expected credit loss rate of 5%.
The basis for determining the combination of accounts receivable is as follows:
Combination 1: A / R BOT business customers
Combination 2: A / R non BOT business customers
Combination 3: related party customers within the A / R consolidation range
For accounts receivable divided into portfolios, the company refers to historical credit loss experience, combines the current situation and the forecast of future economic conditions, and calculates the expected credit loss through default risk exposure and the expected credit loss rate in the next 12 months or the whole duration. Among them, related party customers within the scope of a / R consolidation will not withdraw bad debt reserves.
The basis for determining the combination of other receivables is as follows:
Combination 1: interest receivable
Combination 2: dividends receivable
