Securities code: 5I5J Holding Group Co.Ltd(000560) securities abbreviation: 5I5J Holding Group Co.Ltd(000560) Announcement No.: 2022026 5I5J Holding Group Co.Ltd(000560)
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.
In accordance with the accounting standards for business enterprises, the Listing Rules of Shenzhen Stock Exchange and other relevant provisions, and in combination with the relevant provisions of the company's accounting policies, 5I5J Holding Group Co.Ltd(000560) (hereinafter referred to as "the company") and its subsidiaries have conducted a comprehensive inventory, analysis and evaluation of various assets in order to more truly and accurately reflect the asset status and financial status of the company as of December 31, 2021. Based on the principle of prudence, Provision for impairment is made for some assets that may be impaired, as follows:
1、 Overview of provision for asset impairment
According to the relevant provisions of the accounting standards for business enterprises, the company comprehensively checked the accounts receivable, other receivables, prepayments, contract assets, inventories, other current assets, fixed assets, intangible assets, goodwill, long-term equity investment and other assets of the company and its subsidiaries as of December 31, 2021 on the balance sheet date, and fully analyzed and evaluated the impairment signs of the value of relevant assets.
After impairment test, the company withdrew various credit impairment reserves and asset impairment reserves totaling 16187299674 yuan in 2021 in accordance with the relevant provisions of the accounting standards for business enterprises. The reporting period for the provision for credit impairment and the provision for asset impairment is from January 1, 2021 to December 31, 2021.
2、 Specific description of the provision for asset impairment
According to the asset impairment test results of the company at the end of each reporting period in 2021, the company accrued various credit impairment reserves and asset impairment reserves totaling 16187299674 yuan in 2021, including 13972753047 yuan for bad debts of accounts receivable and other receivables, 1226884 yuan for bad debts of prepayments, 2291415119 yuan for bad debts of other current assets, -4093434 yuan for impairment of financial guarantee contract and -74001942 yuan for inventory falling price. The details are as follows:
1. Description of provision for bad debts
According to the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, the company takes the expected credit loss as the basis, and the receivables withdraw the impairment provision and recognize the credit impairment loss according to the applicable expected credit loss measurement method. The company evaluates the credit risk of financial assets with significantly different credit risks individually. In addition to the financial assets that evaluate the credit risk individually, the financial assets are divided into different groups based on the common risk characteristics, and the credit risk is evaluated on the basis of combination. In 2021, the company accrued 11244246069 yuan for bad debts of receivables, 2728506978 yuan for bad debts of other receivables, 1226884 yuan for bad debts of prepayments, 2291415119 yuan for bad debts of other current assets and -4093434 yuan for impairment of financial guarantee contracts during the reporting period.
2. Description of provision for inventory falling price
According to the accounting standards for Business Enterprises No. 1 - inventory, at the end of 2021, the company comprehensively considers the inventory status, stock age, holding purpose, market sales price, whether there are contract orders and other factors, determines the net realizable value of inventory, compares it with the book value of inventory cost, measures the inventory according to the lower of cost and net realizable value on the balance sheet date, and calculates the difference between the net realizable value and inventory cost, The provision for inventory falling price shall be withdrawn and included in the current profit and loss.
In 2021, the company accrued various inventory falling price reserves of -74001942 yuan.
3、 Impact of provision for impairment on the company
The provision for credit impairment and asset impairment of 16187299674 yuan is included in the company's profit and loss in 2021, which has no impact on the current operating cash flow.
The provision for impairment this time is conducive to truly and accurately reflect the financial status and asset value of the company. The basis is sufficient and reasonable, in line with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, and helps to provide investors with more reliable accounting information.
The amount of provision for impairment has been audited by Zhongshen Zhonghuan Certified Public Accountants (special general partnership). 4、 Approval procedures for the provision for asset impairment this time
The 19th meeting of the 10th board of directors and the 15th meeting of the 10th board of directors and the board of supervisors in 2021 and the board of supervisors in 2021 respectively held on April 27, 2022 considered and adopted the proposal on the provision for credit impairment and asset impairment in 2021. It is agreed that according to the relevant provisions of the accounting standards for business enterprises and in combination with the actual situation of the company's assets, The impairment provision of 16187299674 yuan is withdrawn for assets that may have impairment losses. The independent directors of the company expressed their independent opinions. The proposal does not need to be submitted to the general meeting of shareholders of the company for deliberation.
5、 Explanation and review opinions of the board of directors, independent directors and the board of supervisors on the rationality of the company's provision for asset impairment
1. Explanation of the board of directors on the rationality of the company's provision for asset impairment
The provision for impairment of assets is made based on the company's accounting principles and Prudential accounting principles after the impairment of assets is measured. It can truly reflect the asset value and financial status of the company, and there is no situation damaging the interests of the company and shareholders. The board of directors agreed to withdraw the impairment provision of 16187299674 yuan for the credit and assets that may have impairment losses in accordance with the accounting standards for business enterprises and other relevant provisions and in combination with the actual situation of the company's assets.
2. Explanation of independent directors on the rationality of the company's provision for asset impairment
The company's provision for asset impairment this time complies with the principle of prudence, the standard and basis of provision are reasonable and sufficient, in line with the provisions of the accounting standards for business enterprises and relevant accounting systems of the company, and the provision for impairment provision fully takes into account market factors, which can fairly reflect the company's asset status and operating results, in line with the actual situation of the company and the interests of the company and all shareholders; The internal decision-making procedure of the provision is legal and compliant, and there is no damage to the interests of the company and shareholders, especially small and medium-sized shareholders. We agree with the company's provision for impairment this time.
3. Review opinions of the board of supervisors on the rationality of the company's provision for credit impairment and asset impairment
The company's provision for credit impairment and asset impairment this time complies with the requirements of relevant laws and regulations, the principle of prudence, the actual situation of the company, does not involve the company's related parties, and does not damage the interests of the company and shareholders. The withdrawal and decision-making procedures of credit impairment provision and asset impairment provision are legal and compliant. The financial information after withdrawal can more fairly reflect the company's asset status and help to provide investors with more authentic, reliable and accurate accounting information. The board of supervisors agreed that the company should withdraw the credit impairment loss and asset impairment loss of 16187299674 yuan.
6、 Directory of documents for future reference
1. Resolutions of the 19th meeting of the 10th board of directors and the board of directors in 2021;
2. Resolutions of the 15th meeting of the 10th board of supervisors and the board of supervisors in 2021;
3. Opinions of independent directors.
It is hereby announced.
5I5J Holding Group Co.Ltd(000560) board of directors
April 29, 2022
