Securities code: Haima Automobile Co.Ltd(000572) securities abbreviation: Haima Automobile Co.Ltd(000572) Announcement No.: 202215 Haima Automobile Co.Ltd(000572)
Announcement on the provision for impairment of assets and write off of transactions
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.
1、 Reasons for withdrawing asset impairment provision and transaction write off
In accordance with the accounting standards for business enterprises, the company’s accounting policies and other relevant provisions, in order to more truly and accurately reflect the company’s asset status and financial status as of December 31, 2021 and the company’s operating results in 2021, the company has carried out inventory analysis, evaluation and impairment test on various assets of the company and its subsidiaries, Accordingly, the company shall make corresponding impairment provision for relevant assets within the scope of consolidated accounting statements as of December 31, 2021, and write off the accounts receivable and accounts payable that are long-term on account and cannot be recovered and cannot be paid in the process of operation in accordance with the principles of legal compliance, standardized operation, examination and approval one by one and account cancellation.
The amount of provision for asset impairment and write off amount of transactions in this year have been audited by Lixin Certified Public Accountants (special general partnership).
2、 Provision for asset impairment
(I) overview of provision for asset impairment in this year
Based on the principle of prudence, after a comprehensive inventory and asset impairment test of the assets of the company and its subsidiaries with signs of impairment at the end of 2021, the company accrued 4282136071 yuan of asset impairment reserves in 2021. The details are as follows:
Unit: Yuan
Amount withdrawn in current report of the project
1、 Credit impairment loss -723530907
Including: bad debt loss of accounts receivable -706671381
Bad debt loss of other receivables 50098385
Loan impairment loss -68653467
Invoice credit impairment loss -500000
Impairment loss of other debt investments 2195556
2、 Asset impairment loss 5005666978
Including: inventory falling price loss 2426013242
Impairment loss of fixed assets 1346021566
Impairment loss of investment real estate 1233632170
Total 4282136071
(II) reasonableness of the company’s provision for asset impairment
The provision for asset impairment accrued by the company in 2021 complies with the actual situation of the company’s assets and relevant policies and regulations. The company’s provision for asset impairment can more fairly reflect the company’s asset status and make the company’s accounting information about asset value more authentic, reliable and reasonable.
1. Credit impairment loss
All financial assets (including the changes in the expected fair value of the company’s financial assets and liabilities) are measured in the form of forward-looking information, and the changes in the expected fair value of the company’s financial assets or other assets are included in the company’s estimated fair value. The measurement of expected credit loss depends on whether there is a significant increase in credit risk of financial assets since initial recognition. If the credit risk of the financial instrument has increased significantly since the initial recognition, the company measures its loss reserves according to the amount equivalent to the expected credit loss of the financial instrument in the whole duration; If the credit risk of the financial instrument does not increase significantly after initial recognition, the company measures its loss reserves according to the amount equivalent to the expected credit loss of the financial instrument in the next 12 months. The increase or reversal amount of the loss reserves thus formed shall be included in the current profits and losses as impairment losses or gains. Generally, if it is overdue for more than 30 days, the company considers that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increased significantly since initial recognition. If the credit risk of a financial instrument is low on the balance sheet date, the company considers that the credit risk of the financial instrument has not increased significantly since its initial recognition.
If there is objective evidence that a financial asset has been impaired, the company shall withdraw the impairment provision for the financial asset on a single basis.
The expected credit loss during the duration shall be measured and the provision for loss shall be made. For the accounts receivable with objective evidence indicating impairment and other accounts that 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 the accounts receivable without objective evidence of impairment or when the information of expected credit loss of single financial asset cannot be evaluated at a reasonable cost, the company divides the accounts receivable into several combinations according to the characteristics of credit risk. For the accounts receivable divided into combinations, refer to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, Prepare the comparison table between the aging of accounts receivable and the expected credit loss rate throughout the duration, and calculate the expected credit loss.
(2) For other receivables, if the credit risk has not increased significantly since initial recognition, they are in the first stage, and the company measures the loss reserves according to the expected credit loss in the next 12 months; If the credit risk has increased significantly since the initial recognition, but the credit impairment has not occurred, it is in the second stage, and the company measures the loss provision according to the expected credit loss of the whole duration of the instrument; If the credit impairment has occurred since the initial recognition, it is in the third stage, and the company measures the loss provision according to the expected credit loss of the whole duration of the instrument.
The company divides other receivables into several combinations according to the characteristics of credit risk. For other receivables divided into combinations, refer to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, and calculate the expected credit loss through default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
(3) Provision for loan losses
For loans, except for financial assets with credit impairment, the company recognizes the loss reserves based on the expected credit losses of 12 months or the whole duration according to whether the credit risk has increased significantly and whether the credit impairment has occurred. Expected credit loss is the product of three key parameters: default probability, default loss rate and default risk exposure. The probability of default refers to the possibility that the debtor will not be able to perform its repayment obligations in the next 12 months or the whole remaining duration. The default probability of the company is adjusted based on the results of the internal model, and forward-looking information is added to reflect the time point default probability of the debtor under the current macroeconomic environment. The default loss rate refers to the percentage of exposure loss at the time of default. The default loss rate is also different according to different factors such as business products and collateral. Default risk exposure refers to the total amount of on balance sheet and off balance sheet risk exposure at the time of expected default. The size of exposure takes into account factors such as principal, interest and off balance sheet credit risk conversion coefficient. Different types of products are different.
2. Asset impairment loss
The net realizable value of inventories of goods directly used for sale, such as finished products, inventory goods and marketable materials, shall be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes in the normal process of production and operation; For the inventory of materials that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes; The net realizable value of inventories held for the execution of sales contracts or labor contracts is calculated based on the contract price. If the quantity of inventories held is more than the quantity ordered in the sales contract, the net realizable value of excess inventories is calculated based on the general sales price.
Fixed assets, investment real estate and intangible assets with limited service life measured by cost mode shall be tested for impairment if there are signs of impairment on the balance sheet date. 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. If it is difficult to determine the recoverable amount of the asset group based on the recoverable amount of the asset, the recoverable amount of the asset group shall be recognized. Asset group is the smallest asset portfolio that can generate cash inflow independently.
The company will test the assets with obvious signs of impairment, such as special equipment, inventory parts and components of models that are expected to sell less or have been discontinued, and withdraw the asset impairment according to the above standards; If the company’s assets idle due to production and operation arrangements or backward equipment technology, inventory vehicles and investment real estate whose recoverable amount is less than the book value due to rising costs and changes in sales policies have signs of impairment, the recoverable amount shall be calculated according to the above standards, and the corresponding asset impairment reserves shall be withdrawn.
3、 Current write off
According to the work arrangement of annual financial final accounts, the company organized and implemented the checking and verification of current accounts with long-term accounts in 2021, and cancelled the uncollectible receivables and payables with long-term accounts. The details are as follows:
Unit: Yuan
No. original book value of balance sheet account written off in current period
1. Receivables 561196260
1.1 loans and advances 540403378
1.2 other receivables 20792882
2. Accounts payable 5046122282
2.1 accounts payable 3886142128
2.2 other payables 1149704267
2.3 contract liabilities and advances received 10275887
The main reason for applying for write off of accounts receivable this time is that the company still failed to recover the remaining creditor’s rights after resorting to law for the borrower and guarantor’s failure to repay the due debts. Due to the difficulty of execution, the court ruled to terminate the execution, and the company still failed to recover the remaining creditor’s rights after taking various measures. After calculation, if the liquidation cost is greater than the expected recovery amount, repeated communication and collection failed, and there is no business transaction for a long time, it is confirmed that it cannot be recovered, The company has fully accrued and written off the impairment reserves in accordance with the accounting standards for business enterprises and relevant regulations, but still reserves the right to continue to recover the above amounts.
The main reason for applying for write off of accounts payable this time is that the other party has been cancelled, the account age is long and has exceeded the limitation of action. After confirmation by many parties, it cannot be paid and transferred to non operating income.
4、 The impact of the provision for asset impairment and current write off on the company
After accounting, the company’s credit impairment loss and asset impairment loss accrued in 2021
428214 million yuan, which will reduce the net profit of 379681 million yuan in 2021 and 384734 million yuan attributable to the shareholders of the listed company in 2021; The receivables written off in the current period are 5.612 million yuan, and the bad debt reserves have been fully withdrawn, which will not affect the current profits and losses of the company; The amount payable written off in the current period is 504612 million yuan, which will increase the net profit of 2021 by 501854 million yuan and increase the net profit attributable to the previous year in 2021
