Securities code: Caissa Tosun Development Co.Ltd(000796) securities abbreviation: Caissa Tosun Development Co.Ltd(000796) Announcement No.: 2022032 bond Code: 112532 bond abbreviation: 17 Caesar 03
Caissa Tosun Development Co.Ltd(000796)
Announcement on the provision for asset impairment and the recognition of changes in the fair value of other equity instrument investments 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.
Caissa Tosun Development Co.Ltd(000796) (hereinafter referred to as “the company”) held the 42nd meeting of the 9th board of directors and the 18th meeting of the 9th board of supervisors on April 29, 2022. The meeting deliberated and adopted the proposal on withdrawing the provision for asset impairment and recognizing the changes in the fair value of other equity instrument investments in 2021. In accordance with the relevant provisions of the stock listing rules and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, the relevant information is hereby announced as follows:
1、 Summary of the provision for asset impairment and the recognition of changes in the fair value of other equity instrument investments
In accordance with the accounting standards for business enterprises, accounting regulatory risk tip No. 8 – goodwill impairment and the provisions of the company’s relevant accounting policies, in order to truly and accurately reflect the company’s financial position and operating results as of December 31, 2021, the company has conducted an impairment test on the possible signs of impairment of various types of assets within the scope of the consolidated statements. Based on the difference between the fair value of the company’s investment and the recoverable value of other equity instruments, the provision for impairment shall be measured according to the principle of prudence. 2、 Specific description of withdrawing goodwill impairment
As a comprehensive tourism service provider, the company has been actively expanding the opening and acquisition of domestic and foreign branches and strengthening the global layout. In the early stage, the company acquired 100% equity of Guangdong Caesar Sega International Travel Agency Co., Ltd., Beijing Caesar Shenghe International Travel Agency Co., Ltd., Hangzhou Caesar Sega International Travel Agency Co., Ltd., Shenyang Caesar Sega International Travel Agency Co., Ltd. and Chongqing quanwo conference and Exhibition Service Co., Ltd. Due to the continuous and repeated impact of covid-19 pneumonia outside China, the operating pressure of the subsidiary travel agencies is great, some stores have been closed, and the full provision for impairment of goodwill is 132999 million yuan.
In addition, in 2020, in order to further improve the company’s global influence and reduce the development costs of Hong Kong and Macao, the company completed the acquisition of Kangtai Travel Agency Co., Ltd., a veteran enterprise with more than 40 years, in order to further consolidate the company’s ability in product R & D and overseas group formation. However, due to the outbreak and continuation of the epidemic in Hong Kong, the operation of Kangtai travel agency is blocked. According to the test results, the goodwill impairment of 30 million yuan is accrued this time.
2、 Description of changes in fair value of recognized other equity instrument investments
The change in fair value of other equity instrument investment in 2021 is mainly the decrease of RMB 100 million confirmed by Tianjin Yili Jinwei Tourism Development Co., Ltd. (hereinafter referred to as “Yili Jinwei”).
In 2021, in order to further enhance its control over the upstream tourism resources of China’s tourism market and extend to the upstream of the tourism industry chain, the company’s wholly-owned subsidiary Caesar Tongsheng Travel Agency (Group) Co., Ltd. invested 200 million yuan in Tianjin Yili Jinwei Tourism Development Co., Ltd. (hereinafter referred to as “Yili Jinwei”), accounting for 19.61%; It is mainly for deep cultivation in Beijing Tianjin Hebei region. Under the normalization of the epidemic and the change of people’s living habits and travel needs, it will timely stop and lock in the future regional competition pattern.
In 2021, due to the continuous and repeated impact of covid-19 pneumonia, the recovery of tourism and scenic spot industry did not meet expectations, and the overall operation pressure was great. At the same time, after verification, elion Jinwei has been involved in multiple lawsuits since August 2021, resulting in the freezing of some real estate and accounts, which has been included in the list of dishonest Executees. Although the company is still operating normally, considering the above factors, There are significant uncertainties in the sustainable operation ability of elion Jinwei. Based on the principle of prudence, the company recognizes the fair value of elion Jinwei’s equity as 100 million yuan, and the difference between the book value and fair value of the investment is 100 million yuan, which is included in other comprehensive income.
3、 The impact of the provision for asset impairment and the recognition of changes in the fair value of other equity instrument investments on the company
According to the test results, the impairment of goodwill within the scope of the company’s consolidated statements in 2021 is 432999 million yuan. The change in the fair value of other equity instrument investment is included in other comprehensive income, which reduces the company’s other comprehensive income by 1135547 million yuan in 2021 and the owner’s equity by 1568546 million yuan at the end of 2021.
4、 Opinions of independent directors and the board of supervisors
In order to truly reflect the company’s financial situation and operating results, according to the relevant provisions of the accounting standards for business enterprises, the company has comprehensively checked and analyzed the signs of impairment of the value of relevant assets in the consolidated statements as of December 31, 2021, and tested them by asset category. The company’s goodwill and other equity instruments are impaired according to the test results. The independent directors and the board of supervisors believe that the company’s provision for goodwill impairment and the recognition of changes in the fair value of other equity instrument investments are based on sufficient basis, in line with the provisions of the accounting standards for business enterprises and the company’s accounting policies, and in line with the actual situation of the company. After withdrawing the provision for asset impairment and confirming the changes in the fair value of other equity instrument investments, it can fairly reflect the company’s financial status and operating results, making the company’s accounting information about asset value more authentic, reliable and reasonable. There is no situation that damages the interests of the company and all shareholders, especially minority shareholders.
5、 Documents for future reference
1. Resolution of the 42nd meeting of the 9th board of directors
2. Resolution of the 18th meeting of the 9th board of supervisors
3. The independent opinions of the independent directors of the company on matters related to the 42nd meeting of the ninth board of directors are hereby announced.
Caissa Tosun Development Co.Ltd(000796) board of directors April 30, 2022
