Securities code: Amethystum Storage Technology Co.Ltd(688086) securities abbreviation: Amethystum Storage Technology Co.Ltd(688086) Announcement No.: 2022036 Amethystum Storage Technology Co.Ltd(688086)
Announcement on provision for impairment
Except independent director Wang Huang, independent director Wang Tielin and Director Wen Huasheng, other directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal liabilities for the authenticity, accuracy and integrity of its contents in accordance with the law.
Amethystum Storage Technology Co.Ltd(688086) (hereinafter referred to as “the company”) held the fifth meeting of the third board of directors and the third meeting of the third board of supervisors on April 29, 2022, deliberated and adopted the proposal on the provision for asset impairment, which needs to be submitted to the 2021 annual general meeting of the company for deliberation. The relevant information is hereby announced as follows:
1、 Overview of provision for impairment
In accordance with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, in order to objectively and fairly reflect the company’s financial position as of December 31, 2021 and the operating results of 2021, the company and its subsidiaries have fully evaluated and analyzed the possible credit and assets within the consolidation scope as of December 31, 2021, based on the principle of prudence, The company has conducted impairment test on relevant credit and assets and accrued corresponding impairment reserves. In 2021, the company made a total of 1036824 million yuan of provision for impairment of various credit and assets, as follows:
Unit: RMB / yuan
Name of project assets accrued amount in 2021
Bad debt provision for accounts receivable 9644262341
Provision for bad debts of long-term accounts receivable 189502328
Credit impairment loss notes receivable bad debt provision 450000000
Bad debt provision for other receivables 27697085
Subtotal 10311461754
Inventory falling price reserves 29518315 asset impairment losses
Impairment loss of fixed assets 30000000
Impairment loss of contract assets -5314443
Impairment loss of other non current assets 2571500
Subtotal 56775372
Total 10368237126
2、 Specific description of the provision for impairment
(I) credit impairment loss
The company estimates the expected credit loss of financial assets measured at amortized cost in a single or combined manner. After testing, the company accrued 1031146 million yuan of credit impairment loss of receivables, notes receivable and other receivables in 2021. It is mainly due to the long age of accounts receivable of some customers at the end of the period, delayed payment and other factors. Based on the consideration of prudence, the company calculates the expected credit loss equivalent to the whole duration and accrues the corresponding bad debt reserves.
(II) asset impairment loss
For long-term assets such as fixed assets, construction in progress, inventories, contract assets, other non current assets and intangible assets with limited service life, if there are signs of impairment on the balance sheet date, the recoverable amount shall be estimated and impairment test shall be conducted. For inventory assets, on the balance sheet date, if the inventory cost is higher than its net realizable value, the inventory falling price reserves shall be accrued. The basis and method for withdrawing the provision for impairment of contract assets are the same as those for credit impairment. After testing, the total amount of provision for asset impairment loss to be withdrawn this time is 567800 yuan.
3、 Impact of the current provision for impairment on the company
In 2021, the company accrued 1036824 million yuan of credit impairment losses and asset impairment reserves according to the consolidated statements, which had an impact on the total profit of the company’s consolidated statements of 1036824 million yuan (the impact of income tax was not calculated in the total consolidated profit).
4、 Explanation of the board of directors on the rationality of the company’s provision for asset impairment
At the fifth meeting of the third board of directors held on April 29, 2022, the company deliberated and adopted the proposal on the provision for asset impairment, with 6 affirmative votes, 2 negative votes and 1 abstention vote.
The board of directors of the company believes that the provision for asset impairment is based on the principle of prudence and in line with the accounting standards for business enterprises and the company’s accounting policies.
Wang Huang, an independent director, cast a negative vote on the grounds that based on the audit report on the financial statements issued by Zhongxi certified public accountants, which cannot express an opinion, and the internal control audit report with a negative opinion, I cannot confirm the completeness and authenticity of the main proposals involved in the 2021 financial statements. After full communication with the accounting firm and financial personnel, they still could not effectively eliminate doubts and obtain confirmatory results, so they voted against it. Wang Tielin, an independent director, cast a negative vote on the following grounds: (1) the management’s explanation of the causes and background of accounting errors in the early stage is not convincing; (2) The audit opinion of the annual audit institution on the corresponding matters of the above proposal is: unable to express an opinion. I recognize the professional judgment of the annual audit institution; (3) The management’s explanation of the reasons and background of the illegal guarantee is not convincing enough; (4) The annual audit institution said that some audit procedures (such as letters to banks, interviews with customers, etc.) did not achieve satisfactory results; (5) There is no investigation conclusion on the company’s financial supervision department, and the impact on the company’s financial supervision department cannot be determined; (6) The basic work of the company’s financial accounting is weak, and the timeliness of accounting information is not enough.
Director Wen Huasheng abstained because it was difficult to agree to judge the accuracy and completeness of the adjustment based on the opinions of accountants, but he also recognized the correction measures made by the company’s management based on self-examination and did not object to it, so he made a neutral vote.
5、 Opinion of the board of Auditors
The audit committee of the board of directors discussed and deliberated on the proposal on the provision for asset impairment of the company, with 1 affirmative vote and 2 negative votes.
Independent directors Wang Huang and Wang Tielin voted against, and the reasons are the same as those explained by the above board of directors.
6、 Opinions of independent directors
Pan Longfa, an independent director, voted in favor of the company’s proposal on the provision for asset impairment, while Wang Huang and Wang Tielin, independent directors, voted against it. The reasons are the same as those explained by the above board of directors.
Wang Huang, an independent director, cast a negative vote on the grounds that based on the audit report on the financial statements issued by Zhongxi certified public accountants, which cannot express an opinion, and the internal control audit report with a negative opinion, I cannot confirm the completeness and authenticity of the main proposals involved in the 2021 financial statements. After full communication with the accounting firm and financial personnel, they still could not effectively eliminate doubts and obtain confirmatory results, so they voted against it. Wang Tielin, an independent director, cast a negative vote on the following grounds: (1) the management’s explanation of the causes and background of accounting errors in the early stage is not convincing; (2) The audit opinion of the annual audit institution on the corresponding matters of the above proposal is: unable to express an opinion. I recognize the professional judgment of the annual audit institution; (3) The management’s explanation of the reasons and background of the illegal guarantee is not convincing enough; (4) The annual audit institution said that some audit procedures (such as letters to banks, interviews with customers, etc.) did not achieve satisfactory results; (5) There is no investigation conclusion on the company’s financial supervision department, and the impact on the company’s financial supervision department cannot be determined; (6) The basic work of the company’s financial accounting is weak, and the timeliness of accounting information is not enough.
7、 Opinions of the board of supervisors
The board of supervisors believes that the provision for asset impairment is based on the principle of accounting prudence, with sufficient basis, in line with the accounting standards for business enterprises and relevant accounting policies of the company, and the decision-making procedure for the provision for asset impairment is in line with relevant laws, regulations, the company’s Charter and other provisions. Agree to the company’s current provision for asset impairment.
It is hereby announced.
Amethystum Storage Technology Co.Ltd(688086) board of directors April 30, 2022
