Securities code: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) securities abbreviation: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) Announcement No.: 2022025 Suzhou Chunxing Precision Mechanical Co.Ltd(002547)
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.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (hereinafter referred to as “the company”) held the 9th meeting of the 5th board of directors and the 6th meeting of the 5th board of supervisors on April 24, 2022, deliberated and adopted the proposal on the provision for asset impairment. The relevant information is hereby announced as follows:
1、 Provision for impairment of assets
(I) reasons for withdrawal
In accordance with the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, accounting standards for business enterprises and other relevant provisions, in order to truly and accurately reflect the company’s financial status, asset value and operating results, the company has conducted a comprehensive inventory and impairment test on all kinds of assets within the scope of consolidated statements as of December 31, 2021. Based on the principle of prudence, the company accrues impairment reserves for relevant assets that may have asset impairment losses.
(II) details of this accrual
1. Scope and amount of assets for which provision for asset impairment is made this time
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 accounts receivable, inventory, fixed assets, long-term equity investment, goodwill, etc.), the provision for impairment of various assets in 2021 was about 417686200 yuan. The details are as follows: unit: 10000 yuan
Category item amount
Bad debt loss of notes receivable -7.37
Bad debt loss of accounts receivable 499204
Bad debt loss of other receivables due to credit impairment 408330
Bad debt loss of long-term receivables and long-term receivables due within one year 105.58
Loan impairment loss 211294
Asset impairment, inventory depreciation loss and contract performance cost impairment loss 347118
Inventory depreciation loss and contract performance cost impairment loss 142317
Impairment loss of fixed assets 2545348
Impairment loss of construction in progress 46.45
Goodwill impairment loss 87.85
Total 4176862
2、 The recognition standard and withdrawal method of the provision for asset impairment this time
1. Impairment test method of financial assets and contract assets and provision method for impairment
For financial assets measured at amortized cost and debt instrument investments measured at fair value and whose changes are included in other comprehensive income, the company recognizes loss reserves on the basis of expected credit losses.
a. Recognition method of impairment provision
The company calculates the probability weighted amount of the present value of the difference between the cash flow receivable under the contract and the cash flow expected to be received by taking the risk of default as the weight, and recognizes the expected credit loss on the basis of reasonable and reliable information such as relevant past events, current situation and prediction of future economic conditions.
(1) General treatment method
On each balance sheet date, the company measures the expected credit losses of financial instruments in different stages. If the credit risk of the financial instrument has not increased significantly since the initial recognition, it is in the first stage, and the company measures the loss reserve according to the expected credit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since its initial recognition, but there is no credit impairment, 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 a financial instrument has been impaired since its 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. For financial instruments with low credit risk on the balance sheet date (such as time deposits in commercial banks with high credit rating and financial instruments with external credit rating above “investment grade”), the company assumes that its credit risk has not increased significantly since initial recognition, and measures the loss reserve according to the expected credit loss in the next 12 months.
(2) Simplified treatment method
For accounts receivable, contract assets, lease receivables and income related notes receivable that do not contain significant financing components or do not consider the financing components in contracts that do not exceed one year, the company measures the loss reserves according to the expected credit losses throughout the duration.
For receivables, contract assets and lease receivables regulated by the accounting standards for Business Enterprises No. 21 – leasing, the loss reserves shall always be measured according to the amount equivalent to the expected credit loss in the whole duration.
b. Criteria for judging whether credit risk has increased significantly since initial recognition
If the probability of default of a financial asset within the expected duration determined on the balance sheet date is significantly higher than the probability of default within the expected duration determined at initial recognition, it indicates that the credit risk of the financial asset has increased significantly.
No matter how the company evaluates whether the credit risk has increased significantly, if the contract payment is overdue for more than (including) 30 days, it can generally be presumed that the credit risk of financial assets has increased significantly, unless the company can obtain reasonable and reliable information at reasonable cost to prove that the credit risk has not increased significantly even if the overdue is more than 30 days.
Except for special circumstances, the company uses the change of default risk in the next 12 months as a reasonable estimate of the change of default risk in the whole duration to determine whether the credit risk has increased significantly since initial recognition.
c. Combination method and determination basis for evaluating credit risk based on combination
The company evaluates the credit risk of notes receivable, accounts receivable, contract assets, lease receivables and other receivables with significantly different credit risks and the following characteristics.
For example: receivables in dispute with the other party or involving litigation and arbitration; There are obvious signs that the debtor may not be able to repay the receivables.
When it is impossible to assess the expected credit loss information of a single financial asset at a reasonable cost, the company divides the receivables into several combinations according to the characteristics of credit risk, calculates the expected credit loss on the basis of the combination, and determines the basis of the combination as follows:
Combination name determines the accrual method of the combination
according to
For bills receivable divided into portfolios, the expected credit loss is calculated by referring to the combination of bank acceptance bills receivable and the experience of historical credit loss, combined with the types of commercial acceptance bills receivable in the current situation and the prediction of future economic conditions, and through the default risk exposure and the expected credit loss rate in the whole duration.
Aging combination: for accounts receivable divided into combinations, the company’s accounts receivable aging combination and other company accounts refer to the experience of historical credit loss, combined with the current accounts receivable risk-free combination and risk-free combination: accounts receivable and the prediction of future economic conditions, Within the scope of collection and consolidation, prepare the comparison table between the aging of accounts receivable and the credit loss rate of the company during the advance payment period of the whole duration, and calculate the expected credit
Use loss.
Aging combination: for other accounts receivable divided into combinations, refer to other accounts receivable aging combination and other company accounts, take into account historical credit loss experience, combined with other accounts receivable risk-free combination risk-free combination: accounts receivable and prediction of future economic conditions, The expected credit loss is calculated based on the default risk exposure and the expected credit loss rate of the company’s funds in the whole duration within the scope of collection consolidation. Aging combination: for the long-term accounts receivable divided into combinations, refer to the long-term accounts receivable aging combination and the accounts of other companies, take into account the historical credit loss experience, combined with the current long-term accounts receivable risk-free combination risk-free combination: accounts receivable and the prediction of future economic conditions, The expected credit loss is calculated based on the default risk exposure and the expected credit loss rate of the company’s funds in the whole duration within the scope of collection consolidation.
Comparison table between aging of long-term receivables – aging combination and expected credit loss rate in the whole duration:
(1) Commercial factoring and financial leasing enterprises:
Category aging accrual proportion (%)
1.50 in normal accounting period
Attention overdue 1-90 days 3.00
Secondary overdue 91-180 days 30.00
Suspected overdue 181360 days 60.00
100.00 for losses over 360 days overdue
(2) Other enterprises:
Expected credit loss rate of aging long-term receivables (%)
Within 1 year 5.00
1-2 years 10.00
2-3 years 30.00
More than 3 years 100.00
The company shall record the loss reserves withdrawn or reversed into the current profits and losses. For the debt instruments held at fair value and whose changes are included in other comprehensive income, the company shall adjust other comprehensive income while recording the impairment loss or gain into the current profit and loss.
2. Inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory falling price reserves shall be withdrawn.
(1) Inventory falling price reserves are usually withdrawn according to the difference between the cost of a single inventory item and its net realizable value.
(2) For the inventory with various types and lower unit price, the provision for falling price shall be made according to the inventory of the company.
(3) If the inventories are related to the product series produced and sold in the same region, have the same or similar end use or purpose, and are difficult to be measured separately from other items, the inventory falling price reserves shall be accrued jointly.
3. Provision for impairment of long-term assets
Long term equity investment, investment real estate measured by cost model, fixed assets, construction in progress, right of use assets, intangible assets with limited service life and other long-term assets with signs of impairment on the balance sheet date shall be subject to impairment test. 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 is uncertain about goodwill and service life
