Securities code: Bringspring Science And Technology Co.Ltd(300290) securities abbreviation: Bringspring Science And Technology Co.Ltd(300290) Announcement No.: 2022016 Bringspring Science And Technology Co.Ltd(300290)
With regard to the announcement on the provision for impairment of assets and write off of assets in 2021, the company and the members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
In accordance with the accounting standards for business enterprises, the guidelines for self regulation of listed companies No. 2 – standardized operation of companies listed on GEM and the company’s accounting policies, in order to more truly, accurately and fairly reflect the company’s financial position, asset value and operating results as of December 31, 2021, based on the principle of prudence, the company has conducted a comprehensive inventory and impairment test of various assets within the scope of consolidated statements at the end of 2021, The corresponding provision for asset impairment and asset write off shall be accrued, and the changes in the fair value of other equity instrument investments held shall be recognized.
1、 Overview of the provision for asset impairment this time
(I) reasons for withdrawing asset impairment this time
According to the accounting standards for business enterprises and the company’s accounting policies and other relevant provisions, the company has conducted a comprehensive inventory impairment test on various inventories, accounts receivable, contract assets, other receivables, long-term receivables, fixed assets, long-term equity investment, intangible assets, goodwill, other non current assets and other assets within the scope of consolidated statements as of December 31, 2021, and judged that there are signs of possible impairment, Based on the principle of prudence, the impairment provision is made for the assets that may suffer impairment losses.
(II) scope and amount of assets subject to impairment this time
The scope and amount of assets for which impairment is accrued in the current period are as follows:
Unit: Yuan
Amount of provision for asset impairment withdrawn by the project
Inventory falling price loss 290261808
Impairment loss of contract assets 62957068
Impairment loss of intangible assets 2492136733
Impairment loss of development expenditure 178724697
Goodwill impairment loss 12612503769
Impairment loss of other non current assets 2500000000
Credit impairment loss 5071080835
Total 23207664910
2、 The recognition standard and withdrawal method of the provision for asset impairment and write off of assets this time
(I) withdrawal method of inventory falling price reserves
On the balance sheet date, it is measured according to the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, the inventory falling price reserve shall be withdrawn and included in the current profit and loss.
When determining the net realizable value of inventories, it shall be based on the reliable evidence obtained, and consider the purpose of holding inventories, the impact of events after the balance sheet date and other factors.
1. For inventories directly for sale, such as development costs and materials for sale, in the normal production and operation process, the net realizable value is determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes. For inventories held for the execution of sales contracts or labor contracts, the contract price shall be taken as the measurement basis of their net realizable value; If the quantity of inventory held is more than the quantity ordered in the sales contract, the net realizable value of the excess inventory is measured based on the general sales price. For materials used for sale, the market price shall be taken as the measurement basis of their net realizable value.
2. In the normal production and operation process, the net realizable value of the material inventory that needs to be processed shall be determined by the estimated selling price of the developed products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes. If the net realizable value of the developed product produced by it is higher than the cost, the material is measured at cost; If the decrease of material price indicates that the net realizable value of the developed product is lower than the cost, the material shall be measured according to the net realizable value, and the inventory falling price reserves shall be accrued according to the difference.
3. Inventory falling price reserves are generally withdrawn according to a single inventory item; For the inventory with large quantity and low unit price, it shall be withdrawn according to the inventory category.
4. On the balance sheet date, if the factors affecting the previous write down of inventory value have disappeared, the amount written down shall be restored and reversed within the amount of inventory falling price reserves that have been accrued, and the reversed amount shall be included in the current profit and loss. (II) provision method for impairment of contract assets
Provision for impairment of contract assets shall be made according to the expected credit loss method. No matter whether it contains major financing components or not, the company measures its loss reserves according to the amount of expected credit loss in the whole duration on the balance sheet date. If the expected credit loss is greater than the carrying amount of the current contract asset impairment reserves, the difference is recognized as impairment loss, otherwise it is recognized as impairment gain. If the actual impairment loss occurs, it is determined that the relevant contract assets cannot be recovered and written off after approval.
(III) provision method for impairment of long-term assets
The asset impairment of long-term equity investment, fixed assets, construction in progress, intangible assets, development expenditure, goodwill and other non current assets of subsidiaries, associates and joint ventures (except inventories, investment real estate measured according to fair value model, deferred income tax assets and financial assets) shall be determined according to the following methods:
Judge whether there is any sign of possible impairment of assets on the balance sheet date. If there is any sign of impairment, the company will estimate its recoverable amount and conduct impairment test. For goodwill formed by business combination, intangible assets with uncertain service life and intangible assets that have not reached the usable state, whether there are signs of impairment or not, impairment test shall be carried out every year.
The recoverable amount is determined according to the higher one between the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The company estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs.
The recognition of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the company shall write down its book value to the recoverable amount, and the written down amount shall be included in the current profit and loss, and the corresponding asset impairment provision shall be withdrawn at the same time.
For the impairment test of goodwill, the book value of goodwill formed by business combination shall be apportioned to relevant asset groups in a reasonable way from the purchase date; If it is difficult to allocate to the relevant asset group, it shall be allocated to the relevant asset group portfolio. The relevant asset group or combination of asset groups is the asset group or combination of asset groups that can benefit from the synergy of business combination, and is not greater than the reporting segment determined by the company.
When the impairment test is carried out for the asset portfolio with impairment signs, or the asset portfolio without impairment signs, the corresponding impairment loss of the asset group shall be calculated first. Then carry out impairment test on the asset group or combination of asset groups containing goodwill, and compare its book value with the recoverable amount. If the recoverable amount is lower than the book value, the impairment loss of goodwill shall be recognized.
Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.
(IV) basis and method of credit impairment loss
1. Impairment of financial assets
For financial assets measured at amortized cost, debt investments measured at fair value and whose changes are included in other comprehensive income, contract assets, lease receivables, loan commitments and financial guarantee contracts, the company recognizes loss reserves on the basis of expected credit losses.
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 under 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.
Expected credit loss in the whole duration refers to the expected credit loss caused by all possible events of default in the whole expected duration of financial instruments.
The expected credit loss in the next 12 months refers to the expected credit loss caused by the possible default of financial instruments within 12 months after the balance sheet date (if the expected duration of financial instruments is less than 12 months, it is the expected duration), which is a part of the expected credit loss in the whole duration.
On each balance sheet date, the company measures the expected credit losses of financial instruments in different stages. If the credit risk of the financial instrument has not increased significantly since the initial recognition, it is in the first stage, and the company measures the loss reserves according to the expected credit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since its initial recognition, but there is no credit impairment, it is in the second stage. The company measures the loss provision according to the expected credit loss of the whole duration of the instrument; If a financial instrument has been impaired since its initial recognition, it is in the third stage. The company measures the loss provision according to the expected credit loss of the whole duration of the instrument.
For financial instruments with low credit risk on the balance sheet date, the company assumes that its credit risk has not increased significantly since initial recognition, and measures the loss provision according to the expected credit loss in the next 12 months.
For the financial instruments in the first and second stages and with low credit risk, the company calculates the interest income according to the book balance and effective interest rate without deducting the impairment provision. For the financial instruments in the third stage, the interest income shall be calculated according to the book balance minus the amortized cost after the provision for impairment and the effective interest rate. For notes receivable, accounts receivable, accounts receivable financing and contract assets, whether there is a major financing component or not, the company measures the loss reserves according to the expected credit loss throughout the duration.
2. Write off
If the company no longer reasonably expects the contractual cash flow of financial assets to be recovered in whole or in part, the book balance of the financial assets shall be written down directly. This write down constitutes the derecognition of relevant financial assets. This usually occurs when the company determines that the debtor has no assets or source of income to generate sufficient cash flow to repay the amount to be written down.
If the written down financial assets are recovered later, they shall be included in the profits and losses of the current period as the reversal of impairment losses.
3、 Description of the provision for impairment that exceeds 30% of the net profit of the previous year
1. Provision for impairment of intangible assets
Asset Name: intangible assets
Book value before asset impairment (yuan): 5542334747
Recoverable amount of assets (yuan): 3050198014
Amount withdrawn in 2021 (yuan): 2492136733
Book value (yuan): 3050198014
If there are signs of impairment of assets, the recoverable amount shall be estimated. The recoverable amount shall be the calculation process of the recoverable amount of the asset, which shall be determined according to the higher one between the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset.
The provision for asset impairment this time is based on the accounting standards for Business Enterprises No. 8 – asset impairment
The difference between the recoverable amount and the book value is recognized as impairment loss.
2. Provision for impairment of goodwill
Asset name goodwill – Shanghai mijian Information Technology Co., Ltd
Book value before asset impairment (yuan) 12612503769
Recoverable amount of assets (yuan): 0.00
Amount withdrawn in 2021 (yuan): 12612503769
Book value (yuan)
