Securities code: 000728 securities abbreviation: Guoyuan Securities Company Limited(000728) Announcement No.: 2022-004 Guoyuan Securities Company Limited(000728)
Announcement on the provision for asset impairment
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.
1、 Overview of provision for asset impairment
In order to truly and fairly reflect the company’s financial position as of December 31, 2021 and its operating results in 2021, in accordance with the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, and in combination with the changes in the risk characteristics of financial assets held, The company conducted impairment test on financial assets (including financed funds, financial assets bought for resale, debt investment, other debt investment and accounts receivable) and other assets as of December 31, 2021, and made provision for impairment of various assets totaling 488.906 million yuan, exceeding more than 10% of the company’s audited net profit in the latest fiscal year. See the following table for details of impairment provision:
Unit: RMB 10000
Provision for impairment of assets in 2021
Financial instruments and other items 48302.26
Including: financed funds -982.00
Purchase of resale financial assets 44400.16
Other debt investment 1125.94
Debt investment 1003.30
Accounts receivable 2753.86
Other assets 587.80
Total 48890.06
Note: the above is the preliminary accounting data of the company, and the final amount confirmed by the annual audit of the accounting firm shall prevail. 2、 Explanation on the rationality of the provision for asset impairment and its impact on the company’s profit and loss in the reporting period
The company’s provision for asset impairment in the current period is based on the actual situation of the company’s relevant assets and the principle of prudence, in line with the accounting standards for business enterprises and other relevant provisions, with reasonable basis and sufficient reasons. After the provision for asset impairment is made, the company’s financial statements can more truly and fairly reflect the company’s current financial situation, asset value and operating results, and the company’s financial information is more reasonable.
The annual provision for impairment of various assets of the company totaled 488.906 million yuan, reducing the total profit of the company by 488.906 million yuan, the net profit of the company by 366.6755 million yuan and the net assets of the company by 366.6755 million yuan.
3、 Specific description of provision for asset impairment
(I) the provision for impairment of financed funds is mainly the provision for impairment of margin business offset by the subsidiary “Guoyuan international”.
(II) the provision for impairment of financial assets bought for resale mainly refers to the recoverable analysis of the company’s stock pledge projects such as ” Shenzhen Capstone Industrial Co.Ltd(000038) ” ” Jiawei Renewable Energy Co.Ltd(300317) ” and ” Jiangsu Lanfeng Bio-Chemical Co.Ltd(002513) ” defaulted in previous years, and the provision for expected credit impairment loss is increased according to the further changes of the financier’s credit and the offset value of the pledge.
(III) the provision for impairment of other creditor’s rights investment is mainly the fixed income business of the parent company. For the outstanding balance of default items in previous years, the expected credit impairment loss is accrued according to the increase of recovery possibility.
(IV) the provision for impairment of debt investment mainly refers to the expected credit impairment loss accrued by the subsidiary “Guoyuan international” on the bonds held.
(V) bad debt provision for accounts receivable mainly refers to the provision of expected credit impairment loss for the overdue creditor’s rights and outstanding stock pledge by the parent company.
(VI) the provision for impairment of other assets mainly refers to the provision for inventory falling price withdrawn by the subsidiary of “Guoyuan futures” special business.
It is hereby announced.
Guoyuan Securities Company Limited(000728) board of directors January 17, 2022
