Securities code: Kelin Environmental Protection Equipment Inc(002499) securities abbreviation: ST Colin Announcement No.: 2022040 Kelin Environmental Protection Equipment Inc(002499)
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 contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Kelin Environmental Protection Equipment Inc(002499) (hereinafter referred to as “the company”) held the 14th meeting of the 5th board of directors and the 10th meeting of the 5th board of supervisors on April 29, 2022, deliberated and adopted the proposal on the provision for asset impairment and write off of assets in 2021. The relevant information is hereby announced as follows:
1、 Provision for impairment of assets
(I) overview of provision for asset impairment
In accordance with the relevant requirements of the accounting standards for business enterprises, the Listing Rules of Shenzhen Stock Exchange and the company’s accounting policies, in order to more truly and accurately reflect the company’s asset status and financial status as of December 31, 2021, the company and its subsidiaries have checked, analyzed and evaluated the accounts receivable and other receivables, and made provision for impairment of assets that may have impairment losses.
(II) asset scope, total amount and reporting period to be included in the provision for impairment this time
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test on the assets with possible signs of impairment at the end of 2021, including accounts receivable and other receivables, it is proposed to withdraw a total of 9.057 million yuan of asset impairment reserves in 2021, accounting for 30.55% of the absolute value of -296482 million yuan of audited net profit attributable to shareholders of Listed Companies in the latest period, i.e. 2021. Details are as follows:
Unit: Yuan
The proportion of asset impairment accrued in 2021 in the name of assets belonging to listed companies audited in 2021
The proportion of the reserve amount to the absolute value of the net profit of the shareholders of the company
Credit impairment loss
Including: impairment loss of accounts receivable 797447805 26.90%
Impairment loss of other receivables 108255155 3.65%
Total 905702960 30.55%
The reporting period for the provision for asset impairment is from January 1, 2021 to December 31, 2021.
(III) reasons for withdrawing impairment provision
The company calculates the amount of provision for impairment of receivables according to the expected credit loss rate during the duration of receivables.
2、 Overview of asset write off
1. In order to promote the sale of Shandong Heze Power Station built on behalf of the company, the 10th meeting of the 5th board of directors of the company considered and approved the proposal on continuing to promote the sale of Shandong Heze Power Station and partial debt exemption to its property owner. Sichuan Jida Power Engineering Design Co., Ltd., a wholly-owned subsidiary of the company, agreed to conditionally exempt SanRui power debt of RMB 118082 million.
2. In order to promote the sale of Tibet Shannan power station built on behalf of the company, the 10th meeting of the 5th board of directors of the company considered and approved the proposal on continuing to promote the sale of Tibet Shannan power station and partial debt exemption to its property owner, and the company exempted the unpaid amount payable of RMB 646891 million; Shanghai Kelin Technology Development Co., Ltd., a wholly-owned subsidiary of the company, exempted the unpaid amount payable of RMB 5.195 million; Sichuan Jida Power Engineering Design Co., Ltd., a wholly-owned subsidiary of the company, exempted the unpaid amount payable of RMB 255092 million, and exempted the debt of RMB 953933 million in total. This matter has been deliberated and approved by the sixth extraordinary general meeting of shareholders in 2021.
3. In accordance with the accounting standards for business enterprises, the notice on further improving the quality of financial information disclosure of listed companies, the self regulatory guidelines for listed companies No. 1 – standardized operation of listed companies on the main board and the company’s financial management system, in order to truly reflect the company’s financial situation, after careful research, The company plans to clean up and write off the bad debt reserves related to the above debt exemption and some accounts receivable and other receivables that have been on account for a long time in the process of operation and have no results in recovery.
The bad debt of accounts receivable actually written off in the current period was 6213805844 yuan, and other accounts receivable actually written off in the current period was 1904869384 yuan, with a total of 8118675228 yuan.
3、 The impact of the provision for asset impairment and write off of assets on the company in the current year
The total amount of the company’s provision for asset impairment in 2021 was 9.057 million yuan, reducing the company’s net profit attributable to the owners of the listed company in 2021 by 9.057 million yuan and the owner’s equity at the end of 2021 by 9.057 million yuan.
The assets written off by the company in 2021 totaled 811868 million yuan. The amount has been withdrawn for bad debts before 2021, which will not have an impact on the total profit of the company in 2021.
The provision for asset impairment and write off of assets this time truly reflect the financial situation of the enterprise, meet the requirements of the accounting standards for business enterprises and the company’s accounting policies, comply with the actual situation of the company, do not involve the company’s related parties, and do not damage the interests of the company and shareholders.
4、 Explanation of the board of directors on the reasonableness of the provision for asset impairment and write off of assets in 2021
The board of Directors believes that the provision for asset impairment and write off of assets of the company this time comply with and comply with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision for asset impairment and write off of assets is sufficient, which reflects the principle of prudence in accounting treatment, is conducive to objectively and fairly reflect the asset value and financial status of the company, and make the accounting information about asset value of the company more authentic, reliable and reasonable.
5、 Opinions of independent directors
After verification, we believe that the company’s provision for asset impairment and write off of assets this time comply with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, truly reflect the financial situation of the company, the basis for provision is sufficient, and there is no situation that damages the interests of the company and its shareholders, especially small and medium-sized shareholders. Therefore, we agree with the company’s provision for asset impairment and write off of assets this time.
6、 Opinions of the board of supervisors
After verification, the board of supervisors believes that the provision for asset impairment and write off of assets of the company this time comply with the relevant provisions of the accounting standards for business enterprises and the notice on further improving the quality of financial information disclosure of listed companies. The provision basis is sufficient and the decision-making procedures are standardized, which can truly reflect the financial status and operating results of the company, and there is no damage to the interests of the company and shareholders. Therefore, We agree with the company’s provision for asset impairment and write off of assets.
7、 Documents for future reference
1. Resolution of the 14th meeting of the 5th board of directors.
2. Resolution of the 10th meeting of the 5th board of supervisors.
3. Independent opinions of independent directors on matters related to the 14th meeting of the 5th board of directors.
It is hereby announced.
Kelin Environmental Protection Equipment Inc(002499) board of directors April 29, 2002
