Securities code: Kaiyuan Education Technology Group Co.Ltd(300338) securities abbreviation: Kaiyuan Education Technology Group Co.Ltd(300338) Announcement No.: 2022016
Kaiyuan Education Technology Group Co.Ltd(300338)
About the provision for asset impairment and credit impairment in 2021
And announcement of bad debt write off and asset retirement
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.
Kaiyuan Education Technology Group Co.Ltd(300338) (hereinafter referred to as "the company") was established on April 28, 2022
At the 23rd Meeting of the 4th board of directors and the 21st Meeting of the 4th board of supervisors, the proposal on the provision for asset impairment, provision for credit impairment, write off of bad debts and asset scrapping in 2021 was considered and adopted. In 2021, the company plans to make a total provision for asset impairment of 561161 million yuan, including inventory falling price
Provision for - 122700 yuan, provision for impairment of contract assets 6400 yuan and provision for impairment of goodwill 562324 million yuan;
The total provision for credit impairment is -6.3597 million yuan; The total loss of asset scrapping disposal was 194206 million yuan, and the bad debt write off was 1.8893 million yuan. The details are announced as follows: I. overview of the provision for asset impairment this time
According to the accounting standards for Business Enterprises No. 8 - asset impairment and the relevant provisions of the company's accounting policies, based on the principle of prudence, the company conducted an impairment test on the inventory, long-term equity investment, other equity instrument investment, fixed assets, construction in progress, intangible assets, goodwill and other assets at the end of 2021 within the scope of the consolidated statements, judged that there were signs of possible impairment, and determined the asset items for which provision for asset impairment should be made.
The asset items for which the provision for asset impairment is made this time mainly include inventories, other equity instruments and goodwill. The provision for asset impairment is 561161 million yuan in total, specifically:
Unit: Yuan
Increase in current period decrease in current period
The opening balance of the project is consolidated, the subsidiary is cancelled, transferred back, and the ending balance is transferred out or approved
pin
1、 Inventory falling price reserves
Teaching aids 442782837579461303024232005987
Subtotal 442782837579461303024232005987
2、 Provision for impairment of contract assets
Accrued by portfolio: 51246546439415768595
Subtotal 51246546439415768595
3、 Provision for impairment of goodwill
Shanghai Hengqi education and training Co., Ltd. 83127509467355598114586683490612 Zhongda talents (Beijing)
Guangzhou traction Education Department of Network Education Technology Co., Ltd
2197103372 branch of Technology Co., Ltd
Shanghai Tianhu education and training 250998882120672583244577247145 Co., Ltd
Total 971866807135623239469102809920182
Total 97236083650562464135613030242102847694764
(I) in 2021, the company made provision for inventory falling price -122700 yuan
1. Withdrawal method of inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory falling price reserves are withdrawn according to the difference between inventory category cost and net realizable value. For the inventory directly used for sale, its net realizable value shall be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes in the normal production and operation process; For inventories that need to be processed, the net realizable value is determined by the estimated selling price of finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes in the normal process of production and operation; On the balance sheet date, if there is a contract price agreement for one part of the same inventory and there is no contract price for other parts, the net realizable value shall be determined respectively, and compared with its corresponding cost to determine the amount of inventory falling price reserves withdrawn or reversed respectively.
2. In 2021, the company made provision for inventory falling price of 7600 yuan and transferred out 130300 yuan. Determinable
Specific basis of net realizable value and reasons for write off of inventory falling price reserves in the current period:
This item determines the net realizable value and is written off in the current period
The purpose is specifically based on the reasons for inventory falling price reserves
The net realizable value of teaching and auxiliary materials is calculated according to the market price minus the estimated inventory falling price reserves at the beginning of the period
The amount after the sales expenses of materials and relevant taxes is determined as the inventory consumption
set
(II) in 2021, the company made provision for goodwill impairment of 56239469 yuan
1. Withdrawal method of goodwill impairment provision
For long-term assets such as long-term equity investment, fixed assets, construction in progress, right of use assets and intangible assets with limited service life, if there are signs of impairment on the balance sheet date, the recoverable amount shall be estimated. For the goodwill formed by business combination and intangible assets with uncertain service life, whether there are signs of impairment or not, impairment test shall be carried out every year. Goodwill is tested for impairment in combination with its related asset group or combination of asset groups.
If the recoverable amount of the above long-term assets is lower than its book value, the asset impairment provision shall be recognized according to the difference and included in the current profit and loss.
2. Impact of the provision for impairment of goodwill on the company
As of December 31, 2021, the original value of the company's goodwill was 141422595889 yuan, and the accumulated provision for goodwill impairment was 102809920182 yuan. During the reporting period, the company made a total provision for goodwill impairment of 5623239469 yuan. The above impairment loss will be included in the company's profit and loss in 2021, and the company's profit in 2021 will be reduced accordingly, resulting in a corresponding decrease of 5623239469 yuan in the net profit attributable to the shareholders of the parent company in the consolidated statement of 2021. After the withdrawal, the book value of goodwill is 38612675707 yuan. The provision for impairment of goodwill will be reflected in the company's 2021 annual report. 2、 Overview of provision for credit impairment
(I) statement of provision for credit impairment
On the basis of expected credit loss, the company makes loan commitments other than financial assets measured at amortized cost, debt instrument investments measured at fair value with changes included in other comprehensive income, contract assets, lease receivables, and financial liabilities classified as financial liabilities measured at fair value with changes included in current profits and losses For financial liabilities that are not measured at fair value and whose changes are included in the current profits and losses, or financial guarantee contracts that are not financial liabilities formed by the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets, impairment treatment shall be carried out and loss reserves shall be recognized.
Expected credit loss refers to the weighted average value of credit loss of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contract cash flows receivable according to the contract and all cash flows expected to be received by the company discounted at the original effective interest rate, that is, the present value of all cash shortages. Among them, the financial assets purchased or originated by the company with credit impairment shall be discounted according to the actual interest rate adjusted by the credit of the financial assets.
For the purchased or originated financial assets with credit impairment, the company will only recognize the cumulative changes of expected credit loss in the whole duration after initial recognition as loss reserves on the balance sheet date.
For the receivables and contract assets formed by the transactions regulated by the accounting standards for Business Enterprises No. 14 - income and excluding major financing components or the company does not consider the financing components in the contract of no more than one year, the company uses the simplified measurement method to measure the loss reserves according to the amount equivalent to the expected credit loss in the whole duration.
For financial assets other than the above measurement methods, the company assesses whether its credit risk has increased significantly since initial recognition on each balance sheet date. If the credit risk has increased significantly since the initial recognition, the company measures the loss reserve according to the amount of expected credit loss in the whole duration; If the credit risk does not increase significantly after initial recognition, the company shall measure the loss provision according to the amount of expected credit loss of the financial instrument in the next 12 months.
The company makes use of the available reasonable and based information, including forward-looking information, to determine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.
On the balance sheet date, if the company judges that the financial instrument has only low credit risk, it is assumed that the credit risk of the financial instrument has not increased significantly since initial recognition.
The company assesses the expected credit risk and measures the expected credit loss on the basis of single financial instrument or combination of financial instruments. When based on the combination of financial instruments, the company divides the financial instruments into different combinations based on the common risk characteristics.
The company remeasures the expected credit loss on each balance sheet date, and the increase or reversal amount of the loss provision formed thereby shall be included in the current profit and loss as impairment loss or gain. For financial assets measured at amortized cost, the loss reserves shall offset the book value of the financial assets listed in the balance sheet; For the creditor's rights investment measured at fair value and whose changes are included in other comprehensive income, the company recognizes its loss reserves in other comprehensive income and does not deduct the book value of the financial asset.
(2) Financial instruments for evaluating expected credit risk and measuring expected credit loss by portfolio
The basis for determining the portfolio of projects and the method of measuring expected credit loss
With reference to the experience of historical credit loss, combined with the pre aging status of other receivables - aging combination and the prediction of future economic conditions, through default risk exposure and expected credit loss in the next 12 months or the whole duration
The basis for determining the portfolio of projects and the method of measuring expected credit loss
Loss rate, calculate expected credit loss
Refer to historical credit loss
