Securities code: Easy Visible Supply Chain Management Co.Ltd(600093) securities abbreviation: ST easy to see Announcement No.: 2022039 Easy Visible Supply Chain Management Co.Ltd(600093)
Announcement on the provision for asset impairment and credit impairment in 2021
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.
Important contents and risk tips:
The provision for impairment in the previous period and the provision for impairment of the company’s shareholders in the current year totaled RMB 202.02 billion, of which the actual provision for impairment of bad debts to be written back to the company’s shareholders in the current year amounted to RMB 202.02 billion, of which the actual provision for impairment of bad debts to be written back to the company’s shareholders.
The audited ending net assets of the company in 2020 are negative, the financial and accounting report has been issued with an audit report that cannot express opinions, and the company’s shares have been warned of delisting risk. The company has disclosed the annual report of the company in 2021. The net assets of the Company attributable to the listed company at the end of 2021 are -4971656800 yuan. Dahua Certified Public Accountants issued an audit report on the annual report of the company in 2021, and the company’s shares are subject to financial compulsory delisting and face termination of listing. The trading of the company’s shares will be suspended from the date of disclosure of the annual report.
On April 19, 2022, the company received the advance notice of administrative punishment and market entry ban (punishment Zi [2022] No. 25) (hereinafter referred to as the “notice”) issued by the CSRC. The suspected illegal facts of the company are: there are false records and major omissions in the periodic reports from 2015 to 2020; Failed to disclose the 2020 annual report on schedule. The company preliminarily judged that the illegal acts involved in the company in the notice received this time may touch the major illegal compulsory delisting situations stipulated in the rules such as the Listing Rules of Shanghai Stock Exchange. The final facts shall be subject to the conclusion of the decision on administrative punishment issued by the CSRC.
The closing price of the company’s shares on April 26, 2022 is 0.78 yuan / share, which is lower than 1 yuan. The company’s shares may touch the situation of compulsory delisting of trading.
Easy Visible Supply Chain Management Co.Ltd(600093) (hereinafter referred to as “the company”) deliberated and adopted the proposal on the provision for asset impairment and credit impairment in 2021 at the 33rd meeting of the 8th board of directors held from April 25 to 26, 2022. The relevant information is hereby announced as follows:
1、 Provision for impairment in the current year
(I) basis for provision for impairment
According to the accounting standards for Business Enterprises No. 8 – asset impairment (CK [2006] No. 3) and the requirements of relevant documents of the CSRC and Shanghai Stock Exchange, through communication with Dahua accounting firm, the company’s annual audit accountant, in order to accurately and objectively reflect the company’s asset liability status and operating results, based on the principle of prudence, the company conducted impairment test on all assets within the scope of consolidated statements as of December 31, 2021, It is judged that there are signs of possible impairment, and the asset items requiring impairment provision are determined.
(II) asset scope and amount of impairment provision
The company and its subsidiaries have conducted a comprehensive inventory and impairment test on the assets with possible signs of impairment as of December 31, 2021 (including receivables, prepayments, other receivables, factoring receivables, entrusted loans, long-term receivables, etc.). The provision for impairment of the subsidiary is proposed to be withdrawn in the early period, and the provision for impairment of the subsidiary is proposed to be withdrawn in the current period. The provision for impairment of the subsidiary is proposed to be withdrawn in the early period, and the provision for impairment of the subsidiary is proposed to be withdrawn in the current period. According to the results of the impairment test, the provision for impairment of the subsidiary is proposed to be withdrawn in the current period, totaling RMB 202.0 billion.
The reporting period included is from January 1, 2021 to December 31, 2021.
2、 Details of the company’s current provision for impairment
(I) creditor’s rights of Huizhou kailianda Investment Co., Ltd. subordinate to Evergrande Real Estate Group Co., Ltd
1. Background overview
On May 31, 2019, Horgos easy to see blockchain commercial factoring Co., Ltd. (hereinafter referred to as “Horgos factoring”) carried out the installment factoring (hidden retention and recovery) of the balance payment of house purchase to Huizhou kailianda Investment Co., Ltd. (hereinafter referred to as “kailianda”), a subsidiary of Evergrande Real Estate Group Co., Ltd. (hereinafter referred to as “Evergrande real estate”), with an amount of 500 million yuan and a term of 2 years, Evergrande real estate will provide unlimited joint and several liability guarantee to Horgos factoring.
2. Impairment signs and judgment
On May 31, 2021, after the expiration of the contract, after repeated collection, the company had not received the factoring return of kailianda project as of April 18, 2022. Considering that Evergrande real estate, the controlling shareholder of kailianda, is affected by financial risks, overdue payment and salary arrears, according to the actual communication between the company and kailianda, and referring to the provision for impairment made by other listed companies in the market, based on the principle of prudence, the company plans to make provision for impairment of 500 million yuan of factoring receivables of kailianda project according to the estimated proportion of 50% of individual creditor’s rights, and plans to make provision for impairment of 250 million yuan in 2021.
(II) other creditor’s rights formed by the company’s operation
The company conducts impairment test on other accounts receivable and other receivables included in the scope of impairment test respectively according to the way of combined creditor’s rights or single creditor’s rights. According to the principle of prudence, the total provision for impairment in the reporting period is 30 million yuan, and the provision for impairment in the previous period is reversed by 02 million yuan.
3、 Impact of provision for impairment on the company
(I) the company plans to actually recognize the impairment loss of 278 million yuan in this year, including 280 million yuan of impairment loss to be accrued in this year, 02 million yuan of bad debt provision to be reversed in the previous period and 00 yuan of bad debt provision to be written off in the previous period, which will correspondingly reduce the net profit and owner’s equity of the Company attributable to the shareholders of the listed company.
(II) the company has instructed relevant units and functional departments to further track and verify the situation of the above-mentioned relevant subjects, take various ways, strengthen collection, strive to recover the above-mentioned receivables, and safeguard the legitimate rights and interests of the company and shareholders.
4、 Review procedure
(I) deliberations of the board of directors
The above matters have been deliberated and adopted at the 33rd meeting of the 8th board of directors held from April 25 to 26, 2022 with 9 affirmative votes, 0 negative votes and 0 abstention.
The board of directors of the company believes that the provision for impairment is conducive to truly reflect the financial situation of the enterprise, with sufficient and reasonable basis, in line with the accounting standards for business enterprises and relevant accounting policies of the company, in line with the actual situation of the company, and can more fairly reflect the financial situation of the company.
(II) opinions of independent directors
As an independent director of the company, in a prudent and responsible attitude, we have reviewed the matters about the provision for impairment in advance, agreed to submit them to the board of directors of the company for deliberation, and expressed independent opinions on the matter as follows: the provision for impairment of the company and its subsidiaries conforms to relevant regulations and the actual situation of the company, more objectively and fairly reflects the financial status and asset value of the company and its subsidiaries, and ensures the authenticity and accuracy of financial information, The decision-making procedure is legal and effective, and there is no damage to the interests of the company and shareholders. It is agreed that the company and its subsidiaries shall withdraw impairment reserves in accordance with the requirements of the accounting standards for business enterprises and the company’s accounting system.
(III) opinions of the audit committee
The audit committee of the board of Directors believes that the provision for impairment this time complies with the relevant provisions of the accounting standards for business enterprises and the company’s accounting system, and the financial statements after the provision for impairment can fairly reflect the company’s asset status and operating results. It agrees with the provision for impairment of the company and its subsidiaries this time, and submits the matter to the 33rd meeting of the eighth board of directors for deliberation.
(IV) deliberation of the board of supervisors
The above matters have been deliberated and adopted at the 24th Meeting of the 8th board of supervisors held from April 25 to 26, 2022.
The board of supervisors of the company considered that the provision for impairment of the company and its subsidiaries was in line with the actual situation of assets and the provisions of relevant policies, and agreed with the provision for impairment of the company and its subsidiaries based on sufficient and legal decision-making procedures.
It is hereby announced.
Easy Visible Supply Chain Management Co.Ltd(600093) board of directors
April 27, 2002
