Stock Code: Jilin Liyuan Precision Manufacturing Co.Ltd(002501) stock abbreviation: ST Liyuan Announcement No.: 2022026 Jilin Liyuan Precision Manufacturing Co.Ltd(002501)
Announcement on the provision for 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.
Jilin Liyuan Precision Manufacturing Co.Ltd(002501) (hereinafter referred to as "the company") held the fourth meeting of the Fifth Board of directors and the third meeting of the Fifth Board of supervisors on April 28, 2022, and deliberated and adopted the proposal on withdrawing the provision for asset impairment in 2021. This proposal does not need to be submitted to the general meeting of shareholders for deliberation. The details are hereby announced as follows:
1、 Provision for asset impairment this time
According to the provisions of accounting standards for Business Enterprises No. 8 - asset impairment, the company has conducted impairment test on inventories, fixed assets and construction in progress within the scope of consolidated statements as of December 31, 2021, and accrued asset impairment reserves. The total provision for impairment of various assets to be withdrawn in 2021 is 3473232 million yuan, as shown in the following table:
The proportion of the amount of provision for asset impairment (10000 yuan) in the absolute value of net profit attributable to shareholders of Listed Companies in 2021 (%)
Inventory 526697 11.72
Fixed assets 2921446 65.01
Construction in progress 250.89 0.56
Total amount 3473232 -
2、 Specific description of the provision for asset impairment this time
(I) provision for inventory falling price
During the reporting period, after a comprehensive inventory of inventories, the company shall withdraw or adjust the inventory falling price reserves according to the lower of the cost and net realizable value of inventories. Unless there is clear evidence that the market price on the balance sheet date is abnormal, the net realizable value of inventory items is determined based on the market price on the balance sheet date. According to the principle of prudence, the company accrued 526697 million yuan of inventory falling price reserves, and wrote off 388563 million yuan of inventory falling price reserves according to the carrying forward of inventory consumption.
As of December 31, 2021, the company has made provision for impairment of inventories, as follows:
Amount to be withdrawn in 2021 (10000 yuan)
Raw materials 282171
Entrusted processing materials 14.24
WIP 112433
Goods in stock 126639
Goods issued 40.29
Total impairment amount 526697
(II) provision for impairment of fixed assets
During the reporting period, the recovery of the company's capacity utilization did not meet expectations, and there were signs of impairment of assets. According to the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, in accordance with the principle of prudence, the company hired an evaluation institution to conduct impairment test on fixed assets. The evaluation institution used fair value minus disposal expenses to evaluate, and the recoverable amount = fair value - disposal expenses, According to the evaluation and test results, the company has withdrawn 292144600 yuan of fixed assets impairment reserves.
(III) provision for impairment of construction in progress
During the reporting period, the recovery of the company's capacity utilization did not meet expectations, and there were signs of impairment of assets. According to the accounting standards for business enterprises and the company's accounting policies and other relevant provisions, and in accordance with the principle of prudence, the company hired an evaluation institution to conduct impairment test on the construction in progress. After the test, the company's self-made molds in the construction in progress were impaired, and the company accrued 2.589 million yuan of impairment provision for the construction in progress according to the evaluation and test results.
3、 The impact of the current provision for asset impairment on the company
The company's provision for asset impairment this time complies with the relevant provisions of the accounting standards for business enterprises and the company's internal control. Starting from the principle of prudence, it objectively reflects the actual situation of the company's assets.
Without considering the impact of taxes, the provision for asset impairment this time will reduce the profit in the consolidated statements of the company in 2021 by about 3473232 million yuan and the net profit attributable to the shareholders of the listed company by about 3473232 million yuan. The final data of the company's provision for asset impairment this time shall be subject to the financial data audited by the accounting firm. 4、 Review opinions on the provision for asset impairment this time
1. Opinions of the board of directors on the provision for asset impairment this time
The provision for asset impairment this time complies with the accounting standards for business enterprises, the company's internal control and other relevant provisions. The company's provision for asset impairment can more fairly reflect the company's asset status and make the company's accounting information about asset value more authentic, reliable and reasonable.
2. Opinions of independent directors
The company's provision for asset impairment this time complies with the requirements of the accounting standards for business enterprises and other relevant provisions, and there is no situation that damages the interests of the company and all shareholders. The company's provision for asset impairment and estimated liabilities can more objectively and fairly reflect the company's financial situation and operating results. The deliberation and voting procedures of the board of directors on this matter comply with relevant laws and regulations and the articles of association. We agree to the provision for asset impairment this time.
3. Opinions of the board of supervisors
The company's resolution procedure for withdrawing the provision for asset impairment this time meets the requirements of relevant laws and regulations; The provision complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company. After the provision, it can more truly and fairly reflect the actual asset status and financial status of the company, and there is no damage to the interests of the company and all shareholders. The board of supervisors agreed to the proposal of withdrawing the provision for asset impairment.
It is hereby announced.
Jilin Liyuan Precision Manufacturing Co.Ltd(002501) board of directors April 29, 2022
