Announcement on the company's withdrawal and reversal of asset impairment reserves in 2021
Securities code: Modern Avenue Group Co.Ltd(002656) securities abbreviation: Modern Avenue Group Co.Ltd(002656) Announcement No.: 2022031 Modern Avenue Group Co.Ltd(002656)
Announcement on the company's withdrawal and reversal of asset impairment reserves in 2021
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions in the announcement.
Modern Avenue Group Co.Ltd(002656) (hereinafter referred to as "the company") in order to truly, accurately, objectively and fairly reflect the financial status and operating results of the company, in accordance with the guidelines for the standardized operation of listed companies on Shenzhen Stock Exchange (hereinafter referred to as "the guidelines for the standardized operation") and the accounting standards for business enterprises and other relevant provisions, the company has conducted an impairment test on the assets with signs of impairment as of December 31, 2021. Based on the principle of prudence, The provision for impairment of assets with possible impairment losses is hereby announced as follows:
1、 Overview of the provision for impairment of assets withdrawn and reversed this time
1. Reasons for withdrawing and reversing impairment provision this time
In accordance with the requirements of the accounting standards for business enterprises and the guidelines for standardized operation and other relevant provisions, in order to truly and accurately reflect the financial situation of the company as of December 31, 2021, the company has conducted an impairment test on the assets with signs of impairment, and based on the principle of prudence, the company has accrued corresponding impairment reserves for the relevant assets that may have asset impairment losses. 2. The asset scope, total amount and reporting period included in the current withdrawal and reversal of impairment provision
After the company conducted a comprehensive inventory and asset impairment test on the assets with possible signs of impairment at the end of 2021 (including accounts receivable, other accounts receivable, inventory, intangible assets, etc.), at the same time, due to the recovery of some accounts receivable with bad debt provision in the reporting period, the bad debt provision has been withdrawn. In 2021, the total provision for credit impairment and asset impairment was 640264 million yuan, the bad debt provision was 926799 million yuan, the bad debt provision was 183893 million yuan, and other changes were - 201073 million yuan. As of December 31, 2021, the balance of bad debt provision was 13562542 million yuan. Details are as follows:
Announcement on the company's withdrawal and reversal of asset impairment reserves in 2021
Unit: RMB 10000
Category: withdrawn in the current period on December 31, 2020, reversed in the current period, written off in the current period or approved other changes in the current period, balance on December 31, 2021, balance on the write off date
Bad debt provision for accounts receivable 1441131405963130388 -283.64876416
Bad debt provision for other receivables 3301699 64.54 998.67 535.05 -76.803147101
Inventory falling price reserves 1293676633810420969 -118.821494635
Provision for impairment of investment real estate 144856
Provision for impairment of intangible assets 3454684 -1531473301537
Provision for impairment of goodwill 4597997
Total 14234043640264926799183893 - 20107313562542
remarks:
1. Description of other changes in the current period:
(1) Other changes in bad debt reserves of accounts receivable in the current period are the impact of exchange rate changes;
(2) Other changes in bad debt provision of other receivables in the current period are the impact of exchange rate changes;
(3) Other changes in inventory falling price reserves in the current period are the impact of exchange rate changes;
(4) Other changes in the provision for impairment of intangible assets are changes in exchange rates.
2、 Specific instructions for withdrawing and reversing impairment reserves this time
(I) provision for credit impairment
1. Bad debt provision for accounts receivable
According to the relevant provisions of accounting standards, based on the credit risk characteristics of accounts receivable, they are divided into different groups
The expected credit loss is calculated on the basis of portfolio. According to the experience and changes of historical credit loss, the company makes settlement
Estimate the expected credit loss according to the current situation and the prediction of future economic conditions.
It is estimated that the company plans to withdraw bad debt provision of RMB 10000 for receivables in the reporting period. Accounts receivable to be transferred
The provision amount was 405963 million yuan, mainly due to the company's recovery of accounts receivable with bad debts accrued in the previous period during the reporting period. The reserve amount of accounts receivable to be written off is 130388 million yuan, which is mainly due to the signing of a settlement agreement to give the debtor
The corresponding discount, the remaining amount has been recovered and the amount that cannot be recovered due to the inability to contact the debtor.
2. Bad debt provision for other accounts receivable
According to the relevant provisions of accounting standards, based on the credit risk characteristics of other accounts receivable, they are divided into different categories
Portfolio: calculate the expected credit loss on the basis of portfolio.
According to the historical credit loss experience and changes of the company,
Combined with the current situation and the prediction of future economic conditions, the expected credit loss is estimated.
After calculation, the company plans to withdraw 645400 yuan of bad debt reserves for other receivables in the reporting period. Proposed transfer response
Announcement on the company's withdrawal and reversal of asset impairment reserves in 2021
The provision for accounts receivable was 9.9867 million yuan, which was mainly due to the company's recovery of other accounts receivable that had accrued bad debts in the previous period during the reporting period. The reserve amount of accounts receivable to be written off is 5.3505 million yuan, which is mainly due to the signing of a settlement agreement and the corresponding discount given to the debtor, and the remaining amount has been recovered.
(II) provision for asset impairment
1. Inventory falling price reserves
According to the relevant provisions of the accounting standards for business enterprises, the company checked and analyzed the inventory, determined the net realizable value of the inventory based on the higher of the estimated selling price of the inventory minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes and the present value of the expected future cash flow of the asset, and accrued the inventory falling price reserve of 63.381 million yuan according to the difference between the book cost of the inventory and the net realizable value, Included in asset impairment loss. 2. Provision for impairment of investment properties
According to the accounting standards for business enterprises and relevant accounting policies of the company, the company adopts the market method to estimate the fair value of investment real estate and the income method to estimate the present value of future cash flow, calculates the recoverable amount, and withdraws the impairment provision of investment real estate of RMB 10000 according to the difference between the book value of assets and the recoverable amount.
3. Provision for impairment of intangible assets
The company uses the income method to evaluate the fair value of intangible assets, minus the disposal expenses to determine the recoverable amount of assets, and withdraws 0.00 yuan of intangible asset impairment reserves according to the difference between the book value of assets and the recoverable amount.
4. Provision for impairment of goodwill
According to the accounting standards for business enterprises and relevant accounting policies of the company, the company conducts impairment test on goodwill at the end of each year, calculates the recoverable amount by using the income method to predict the present value of future cash flow, and withdraws 0.00 yuan of goodwill impairment provision according to the difference between the book value of assets and the recoverable amount.
3、 The impact of this withdrawal and reversal of impairment provision on the company
The provision for impairment of various assets withdrawn and reversed this time affects the company's total consolidated profit of 286535 million yuan in 2021, accounting for 3.82% of the company's audited net assets on December 31, 2021.
It is hereby announced.
Modern Avenue Group Co.Ltd(002656) board of directors April 27, 2022
