Securities code: Palm Eco-Town Development Co.Ltd(002431) securities abbreviation: Palm Eco-Town Development Co.Ltd(002431) Announcement No.: 2022037
Palm Eco-Town Development Co.Ltd(002431)
With regard to the announcement on the provision for credit impairment and 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.
Palm Eco-Town Development Co.Ltd(002431) (hereinafter referred to as "the company") held the 42nd meeting of the 5th board of directors and the 17th meeting of the 5th board of supervisors on April 25, 2022, deliberated and adopted the proposal on the provision for credit impairment and asset impairment in 2021. The specific circumstances are as follows: I. reasons for the provision for credit impairment and asset impairment in this period
Based on the principle of prudence, the company analyzes the assets within the scope of the consolidated statements and withdraws the corresponding impairment reserves for the assets with signs of impairment.
The company has conducted impairment tests on financial assets, inventories, contract assets and other assets by the end of 2021, and judged that there are signs of impairment, so it is necessary to withdraw impairment reserves. The company's provision for credit impairment of financial assets this time is 229586600 yuan; The provision for asset impairment of inventories and contract assets is 518217 million yuan, and the above provision for impairment is 2814083 million yuan in total, accounting for 636.06% of the absolute value of the audited net profit of 442411 million yuan attributable to shareholders of Listed Companies in the latest period, i.e. 2020.
2、 Summary of provision for credit impairment and asset impairment in the current period
The total amount of credit impairment provision and asset impairment provision accrued by the company in 2021 is 281408300 yuan. The asset scope and amount of credit impairment provision and asset impairment provision accrued this time are as follows:
The proportion of the amount of impairment provision of asset name (10000 yuan) in the absolute value of the audited net profit attributable to the shareholders of the listed company in 2020
Accounts receivable - 202363 45.74%
Other receivables 1945017 439.63%
Financial guarantee contract 552612 124.91%
Notes receivable 6.00 0.14%
Contract assets 518217 117.13%
Total 2814083 636.06%
The provision for credit impairment and asset impairment is included in the financial report of 2021.
3、 Specific description of the provision for credit impairment and asset impairment this time
(I) provision for credit impairment
During the reporting period, the company made provision for credit impairment of 229586600 yuan in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, including - 20236300 yuan for bad debts of accounts receivable, 194501700 yuan for bad debts of other accounts receivable, 552612 million yuan for bad debts of financial guarantee contracts and 60000 yuan for bad debts of notes receivable.
The company's credit impairment provision policy: considering all reasonable and reliable information, including forward-looking information, the company estimates the expected credit losses of financial assets measured at amortized cost and financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income in a single or combined manner. 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 initial recognition. If there is objective evidence indicating that a financial asset has been impaired, the company shall make provision for impairment of the financial asset on a single basis. If an enterprise combines financial assets according to similar credit risk characteristics, the grouping criteria include customer type, payment nature, overdue days, aging, etc. For accounts receivable, regardless of whether it contains major financing components or not, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration. For lease receivables and long-term receivables formed by the company through selling goods or providing labor services, the company chooses to always measure its loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
(II) provision for asset impairment
During the reporting period, the company made a provision for asset impairment of 518217 million yuan in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, all of which are provisions for impairment of contract assets.
The company's inventory impairment provision policy: the inventory is measured according to the lower of cost and net realizable value. If the cost is higher than the net realizable value, the inventory depreciation provision is accrued and included in the current profit and loss. After the provision for inventory falling price is made, if the factors affecting the previous write down of inventory value have disappeared, resulting in the net realizable value of inventory being higher than its book value, it shall be reversed from the amount of inventory falling price provision that has been made, and the reversed amount shall be included in the current profit and loss. The company's provision policy for impairment of contract assets: for contract assets, regardless of whether they contain significant financing components or not, the company always measures its provision for loss according to the amount equivalent to the expected credit loss in the whole duration. The increase or reversal of the provision for loss arising therefrom is included in the current profit and loss as impairment loss or gain.
4、 The impact of the provision for credit impairment and asset impairment on the company
The company's provision for credit impairment and asset impairment this time will increase the credit impairment loss and asset impairment loss of the company's consolidated financial statements by 229586600 yuan and 51821700 yuan respectively, and the total profit of the company's consolidated financial statements in 2021 will decrease by 281408300 yuan.
5、 Opinions of the board of directors
The board of Directors believes that the provision for credit impairment and asset impairment in 2021 is made in accordance with the accounting standards for business enterprises and other relevant regulations, in line with the principle of prudence and with sufficient basis. After the provision for impairment is made, the financial statements of 2021 can more fairly reflect the company's financial status, asset value and operating performance of 2021 as of December 31, 2021, making the company's accounting information more authentic, reliable and reasonable. Therefore, it is agreed to make the provision for asset impairment this time.
6、 Opinions of the board of supervisors
After deliberation, the board of supervisors held that: Based on the principle of prudence, the company has analyzed the assets within the scope of the consolidated statements and made corresponding impairment provision for the assets with signs of impairment, which is fully based, in line with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, and can more fairly reflect the asset status and operating results of the company, It is agreed that the company will withdraw the provision for credit impairment and asset impairment in 2021.
7、 Opinions of independent directors
The independent directors believe that the company's provision for credit impairment and asset impairment is based on the principle of prudence, in line with the accounting standards for business enterprises and the relevant provisions of the company's accounting policies, and can objectively and fairly reflect the company's financial position as of December 31, 2021, asset value and operating results in 2021, and the company's provision for credit impairment and asset impairment is in line with the overall interests of the company, There is no situation that damages the interests of the company and all shareholders, especially minority shareholders. Therefore, we agree that the company shall make provision for credit impairment and asset impairment in 2021.
8、 Documents for future reference
1. Resolutions of the 42nd meeting of the 5th board of directors;
2. Resolutions of the 17th meeting of the 5th board of supervisors; 3. Independent opinions of independent directors on relevant matters. It is hereby announced.
Palm Eco-Town Development Co.Ltd(002431) board of directors April 26, 2022
