Securities code: Shenzhen Sea Star Technology Co.Ltd(002137) securities abbreviation: Shenzhen Sea Star Technology Co.Ltd(002137) Announcement No.: 2022016 Shenzhen Sea Star Technology Co.Ltd(002137)
Announcement on provision for impairment of assets and write off of assets
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Shenzhen Sea Star Technology Co.Ltd(002137) (hereinafter referred to as “the company”) held the 21st Meeting of the 6th board of directors and the 17th meeting of the 6th board of supervisors on April 22, 2022. The meeting deliberated and adopted the proposal on the provision for asset impairment and write off of assets respectively. This matter does not need to be submitted to the general meeting of shareholders for deliberation. The relevant matters are hereby announced as follows:
1、 Overview of the provision for asset impairment this time
1. Reasons for withdrawing asset impairment provision this time
In accordance with the accounting standards for business enterprises, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, and the company’s accounting policies, in order to more truly and accurately reflect the company’s asset status and financial status as of December 31, 2021, Based on the principle of prudence, the company has conducted a comprehensive inventory and impairment test of various assets in the consolidated statements as of December 31, 2021, and accrued corresponding impairment reserves for assets with possible signs of impairment.
2. The scope of assets, total amount and reporting period included in the provision for asset impairment this time
The scope of provision for impairment of inventories, fixed assets and other receivables includes the current provision for impairment of assets. The company’s total provision for asset impairment of relevant assets within the scope of consolidated financial statements in 2021 is 147873800 yuan, accounting for 155.12% of the company’s audited net profit attributable to shareholders of Listed Companies in 2021. The details of the provision for asset impairment are as follows:
Asset name proportion of the provision for asset impairment accrued in 2021 to the audited net profit of the absolute amount (10000 yuan) attributable to the shareholders of the listed company in 2021
Goodwill 12825134.53%
Accounts receivable 137545 14.43%
Other receivables 42.30 0.44%
Inventory 437.41 4.59%
Fixed assets 107.22 1.12%
Total 1478738 155.12%
The reporting period for the provision for asset impairment is from January 1, 2021 to December 31, 2021.
2、 Specific description of the provision for asset impairment this time
1. Description of goodwill impairment
According to the provisions of accounting standards for Business Enterprises No. 8 – asset impairment, the goodwill formed by business combination shall be tested for impairment at the end of each year or when there are signs of impairment in the accounting period. The goodwill impairment test shall estimate the recoverable amount of the relevant asset group or asset group combination containing goodwill, so as to judge whether the goodwill is impaired or calculate the amount of goodwill impairment. The recoverable amount shall be determined according to 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. During the reporting period, the company conducted impairment test on relevant asset groups (portfolios) containing goodwill, and accrued goodwill impairment of 128.25 million yuan. Among them, 1259773 million yuan of goodwill impairment was accrued in the Internet sector. The details are as follows:
The company acquired digital marketing business in 2015 and generated goodwill of RMB 541515 million. As of the end of 2020, the book value of goodwill was RMB 1259773 million. The company hired an appraisal agency to estimate the present value of the expected future cash flow of the asset group of the Internet sector. According to the asset appraisal report issued by Zoomlion asset appraisal group Co., Ltd. in April 2022 and confirmed by audit, the amount of goodwill impairment during the reporting period was 1259773 million yuan. The main reason is that during the reporting period, affected by the epidemic and macroeconomic factors, the market publicity needs of some customers in the company’s smart marketing sector fluctuated, and the advertising budget decreased, resulting in the decline of the company’s smart marketing sector performance; With the rapid development of the Internet marketing industry, the transformation of many traditional advertising companies and the direct entry of head media, the competition in the digital marketing industry is becoming increasingly fierce, and the company’s market share and profit space are squeezed. Based on the current operating conditions and the analysis and prediction of future operating conditions, relevant goodwill impairment reserves are accrued in the reporting period.
2. Provision for bad debts of accounts receivable and other receivables
The company calculates the expected credit loss of receivables through the default risk exposure of receivables and the expected credit loss rate in accordance with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies. When determining the expected credit loss rate, the company calculates the probability weighted amount of the present value of the difference between the cash flow receivable under the contract and the expected cash flow, confirms the expected credit loss and obtains the expected credit loss rate of each receivable based on reasonable and reliable information such as relevant past events, current situation and prediction of future economic conditions, taking the risk of default as the weight. For accounts receivable, contract assets, long-term receivables, other receivables and notes receivable, regardless of whether there is a significant financing component, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
During the reporting period, the company made bad debt provision of 137545 million yuan for accounts receivable and 423000 yuan for other accounts receivable, totaling 141775 million yuan.
3. Description of inventory falling price reserves
According to the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, inventories are measured at the lower of cost and net realizable value, and their net realizable value is determined based on the estimated selling price of inventories in the normal production and operation process minus the estimated selling expenses and relevant taxes; For the material inventory that needs to be processed, in the normal production and operation process, the net realizable value is determined by the amount of the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes, and compared with its corresponding cost, the amount of inventory falling price reserves withdrawn or reversed is determined respectively, and the reversed amount is included in the current profit and loss.
During the reporting period, the company conducted impairment test on various inventories according to the above methods. According to the test results, the company made provision for inventory impairment of 4.3741 million yuan in 2021.
4. Description of impairment of fixed assets
In accordance with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, in order to fairly reflect the value of various assets at the end of the reporting period, the company checks the existing fixed assets and tests the impairment of fixed assets with signs of impairment. When the recoverable amount of assets is expected to be lower than its book value, the provision for asset impairment shall be recognized and measured.
At the end of the reporting period, the company conducted impairment test on fixed assets according to the above methods. According to the test results, the company made a provision for impairment of fixed assets of 1.0722 million yuan in 2021. 3、 Overview of assets written off this time
In accordance with the accounting standards for business enterprises, the guidelines for self regulation and supervision of listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and the relevant provisions and requirements of the company’s accounting policies, in order to truly reflect the company’s financial situation, the company decided to clean up and write off some uncollectible receivables and other receivables. The total write off amount is 127246 million yuan, including 127016 million yuan of accounts receivable and 23000 yuan of other accounts receivable. The details are as follows:
Asset category write off asset amount write off reason
(10000 yuan)
Accounts receivable 127016 won the lawsuit and the other party was unable to execute; The other party has cancelled, etc
Other receivables 2.30 written off by the other party
Total: 127246
The reporting period of the assets written off this time is from January 1, 2021 to December 31, 2021.
For the accounts receivable written off this year, the company has adopted the methods of collection, litigation and so on. However, due to the inability of the other party to implement and the cancellation of the other party’s company, the company has been unable to recover the above amounts, so the above amounts are written off.
4、 The impact of asset impairment and write off on the company
The provision for asset impairment this time totaled 147873800 yuan, reducing the company’s net profit attributable to the shareholders of the listed company by 1405031 million yuan in 2021 and the owner’s equity attributable to the shareholders of the listed company by 1405031 million yuan at the end of 2021. The company’s assets written off in 2021 totaled 127246 million yuan, and the bad debt reserves of accounts receivable and other receivables had been fully withdrawn in previous periods, which had no impact on the profits and losses during the reporting period. The provision for asset impairment and write off assets have been audited and confirmed by Rongcheng Certified Public Accountants (special general partnership).
The provision for asset impairment and write off of assets this time comply with the requirements of accounting standards and relevant policies and the actual situation of the company. There is no behavior damaging the interests of the company and shareholders and will not have a significant impact on the normal production and operation of the company. There is no profit manipulation in the provision for asset impairment and write off of assets this time, and some receivables written off this year do not involve related parties of the company.
5、 Opinions of the board of directors on the provision for asset impairment and write off of assets
The company’s provision for asset impairment and write off of assets this time comply with the accounting standards for business enterprises, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, accounting policies and accounting estimates, and in accordance with the principle of prudence and the actual situation of the company’s assets, The company’s provision for asset impairment and write off of assets can fairly reflect the company’s financial status and operating results as of December 31, 2021. The board of directors agreed to withdraw the provision for asset impairment and write off assets this time.
6、 Independent opinions of independent directors
The independent directors of the company believe that the company’s provision for asset impairment and write off of assets are based on the principle of prudence, in line with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company’s assets, and there is no situation that damages the interests of the company and all shareholders, especially minority shareholders. After the provision for asset impairment and write off of assets, the financial statements can more fairly reflect the company’s financial situation and operating results, making the company’s accounting information more reasonable. It is agreed to withdraw the provision for asset impairment and write off assets this time.
7、 Opinions of the board of supervisors
After review, the board of supervisors held that the procedures of the board of directors were legal when considering the proposal of withdrawing the provision for asset impairment and writing off assets. The company’s provision for asset impairment and write off of assets is to ensure the standardized operation of the company, adhere to prudent accounting principles, fairly reflect the company’s financial status and operating results, comply with the relevant provisions of the accounting standards for business enterprises, and there is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. It is agreed to withdraw the provision for asset impairment and write off assets this time.
8、 Documents for future reference
1. Resolutions of the 21st Meeting of the 6th board of directors;
2. Resolutions of the 17th meeting of the 6th board of supervisors;
3. Independent opinions of independent directors on matters related to the 21st Meeting of the sixth board of directors.
It is hereby announced.
Shenzhen Sea Star Technology Co.Ltd(002137) board of directors April 26, 2022
