Securities code: Shanxi Lu’An Environmental Energydev.Co.Ltd(601699) stock abbreviation: Shanxi Lu’An Environmental Energydev.Co.Ltd(601699) Announcement No.: 2022006 bond Code: 143366 bond abbreviation: 17 Huanneng 01
Shanxi Lu’An Environmental Energydev.Co.Ltd(601699)
Announcement on recognition of provision for impairment of various assets
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.
In accordance with the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment and the accounting policy of the company for withdrawing the provision for asset impairment, and based on the principle of prudence, Shanxi Lu’An Environmental Energydev.Co.Ltd(601699) (hereinafter referred to as “the company”) has checked all assets as of December 31, 2021 and withdrawn the provision for impairment of all assets.
The company held the 8th meeting of the 7th board of directors on April 21, 2022, and deliberated and adopted the proposal on confirming the provision for impairment of various assets.
I Basic information of provision for asset impairment
The company has checked all assets as of December 31, 2021, and made provision for impairment of all assets according to the company’s accounting policy of making provision for impairment of assets.
1. The balance of accounts receivable at the end of the period was 398228 million yuan, and the provision for bad debts was 579.88 million yuan. The balance of bad debt provision at the beginning of the period is 573.38 million yuan, and the bad debt provision in the current period is 6.5 million yuan.
2. The balance of other receivables at the end of the period was 303.43 million yuan, and the bad debt provision accrued was 165.81 million yuan. The balance of bad debt provision at the beginning of the period was 176.98 million yuan, and the provision for bad debt provision in the current period was – 11.17 million yuan.
3. The balance of contract assets at the end of the period was 14.83 million yuan, and the provision for impairment of contract assets was 2.83 million yuan according to the determination method of expected credit loss. The balance of provision for impairment of contract assets at the beginning of the period was 6.59 million yuan, and the provision for impairment of contract assets in the current period was -3.76 million yuan.
4. The balance of provision for impairment of fixed assets at the beginning of the period was 302.62 million yuan. At the end of the period, the provision for impairment of fixed assets is 303.35 million yuan according to the principle of the lower of the book value of fixed assets and recoverable amount. The disposal of some fixed assets in the current period shall also write off the impairment provision of 215.01 million yuan accrued in the corresponding previous period. The balance of provision for impairment of fixed assets at the end of the period was 390.96 million yuan.
5. The balance of impairment provision for construction in progress at the beginning of the period was 4.12 million yuan. At the end of the period, the provision for impairment of construction in progress is 26.99 million yuan according to the principle of the lower of the book value of construction in progress and the recoverable amount. In this period, Lu’an coking company disposed of the construction in progress and wrote off the impairment provision of 246.11 million yuan accrued in the corresponding earlier period. The balance of provision for impairment of construction in progress at the end of the period was 198.4 million yuan.
6. The balance of provision for impairment of intangible assets at the beginning of the period was 110221 million yuan. At the end of the period, the provision for impairment of intangible assets is 16.96 million yuan according to the principle of the lower of the book value and recoverable amount of intangible assets. The balance of provision for impairment of intangible assets at the end of the period was 111917 million yuan.
2、 Impact of the provision for asset impairment on the company
The total amount of provision for asset impairment this time is 338.87 million yuan, which is expected to reduce the total profit of the company in 2021 by 338.87 million yuan.
3、 Independent opinions of independent directors on confirming the provision for impairment of various assets
The company’s provision for asset impairment this time complies with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies. The basis for the provision is sufficient, which can truly and fairly reflect the company’s financial position as of December 31, 2021 and the operating results of 2021, help to provide investors with more authentic, reliable and accurate accounting information, and meet the interests of the company and all its shareholders, especially small and medium-sized shareholders. The company agrees to withdraw the provision for asset impairment this time.
4、 Review opinions of the board of supervisors
The asset impairment matters proposed by the company comply with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company’s operation, which is conducive to improving the quality of the company’s assets and can truly reflect the company’s financial situation.
It is hereby announced.
Shanxi Lu’An Environmental Energydev.Co.Ltd(601699) board of directors April 23, 2022
