Securities code: Hangzhou Century Co.Ltd(300078) securities abbreviation: Hangzhou Century Co.Ltd(300078) Announcement No.: 2022048
Bond Code: 123096 bond abbreviation: Sichuang convertible bond
Hangzhou Century Co.Ltd(300078)
Announcement on the provision for asset impairment and write off of assets in 2021
The company and all members of the board of directors guarantee that the content of information disclosure is true, accurate and complete without falsehood
False records, misleading statements or material omissions.
According to the accounting standards for business enterprises and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 –
– standardized operation of companies listed on the gem, guidelines for self-discipline supervision of companies listed on the gem of Shenzhen Stock Exchange
No. 1 – business handling, in order to truly reflect the company’s financial situation and performance in 2021
According to the asset value, the company shall make provision for impairment of relevant assets.
1、 The scope and amount of the current provision for asset impairment and write off of assets
1. The details of the provision for asset impairment are as follows:
The company and its subsidiaries fully cleared the assets with possible signs of impairment at the end of 2021
After checking and asset impairment test, the provision for impairment of various assets in 2021 is 46113209628 yuan, which is transferred to
The bad debt provision was 1023627930 yuan, the inventory falling price provision was 202871759 yuan, and the bad debt was written off
Prepare 29500 yuan. The details are as follows:
Unit: RMB
Opening balance of the project current period increase current write off / transfer back current period transfer out closing balance
Bad debt provision for accounts receivable 2432105060113044019105121288543 [Note 1] 37243781163
Bad debt provision for other receivables 182464601731970063229500 Changgao Electric Group Co.Ltd(002452) 5437 [Note 1] 2116871212
Bad debt provision for long-term receivables 107894546 -5483360453060942
Inventory falling price reserves 8592164431289392438202871759 [Note 2] 1945737122
Provision for impairment of contract assets 154537503512492659452794640980
Provision for impairment of fixed assets 1731996536
Impairment provision for long-term equity investment 2831191 Ningbo Peacebird Fashion Co.Ltd(603877) 813950 [Note 3] 1953377653
Goodwill impairment provision 68302268522570247697332532703825
Total 3548840949446113209628205821759102362793080372169433
[Note 1] Guangzhou Lide Internet of things Technology Co., Ltd. and Hangzhou Huisheng Technology Co., Ltd. are no longer included in the scope of consolidation and transferred out of bad debt reserves.
[Note 2] as some of the products with depreciation provision have been sold in the current period, the depreciation provision is reversed.
[Note 3] in October 2021, due to the withdrawal of the company’s employees who served as directors of Hangzhou Chuanghui medical electronic equipment Co., Ltd., the subsidiary Yihui Technology Co., Ltd. no longer had a significant impact on Hangzhou Chuanghui medical electronic equipment Co., Ltd., so it was transferred to other non current financial assets accounting from November 2021.
2、 The recognition standards and methods for the provision for asset impairment and write off of assets this time
1. Bad debt accrual method of accounts receivable (accounts receivable, other accounts receivable, long-term accounts receivable and contract assets):
(1) Impairment measurement and accounting treatment of financial instruments
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 lease receivables and the accounting standards for Business Enterprises No. 14 – revenue, which do not contain significant 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 expected credit loss amount 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 historical credit loss experience, combined with the current situation and the aging measurement of other advance receivables – aging combination of future economic conditions, through the default risk exposure and the expected credit loss rate in the next 12 months or the whole duration, Calculate expected credit loss
(3) Receivables and contract assets with expected credit losses measured by portfolio
1) Specific combination and method of measuring expected credit loss
The basis for determining the portfolio of projects and the method of measuring expected credit loss
The bank acceptance bills receivable refer to the historical credit loss experience, combined with the current situation and the pre bill type measurement of the future economic situation, through the default risk exposure and the expected credit loss rate of the renewal of the whole deposit and receivable commercial acceptance bills, Calculate expected credit loss
With reference to the experience of historical credit loss, combined with the current situation and the aging measurement of advance accounts receivable aging combination for future economic conditions, prepare the comparison table between the aging of accounts receivable and the expected credit loss rate for the whole duration, Calculate expected credit loss
Referring to the experience of historical credit loss, combined with the current situation and the pre contract asset aging combination aging measurement of future economic conditions, prepare the comparison table between the aging of contract assets and the expected credit loss rate in the whole duration, Calculate expected credit loss
With reference to the experience of historical credit loss, combined with the current situation and the nature of pre long-term receivables for future economic conditions, the expected credit loss is calculated through default risk exposure and the expected credit loss rate for the whole duration
