On Zjbc Information Technology Co.Ltd(000889) 20, the reply to the letter of concern of Shenzhen Stock Exchange said that there was no financial “big bath”.
Specifically, Zjbc Information Technology Co.Ltd(000889) said in its reply to the Shenzhen stock exchange that the company completed a major asset restructuring in November 2018, and issued shares to the restructuring counterparty and paid cash to purchase 100% equity of Jiahua information. The transaction consideration for issuing shares to purchase assets in this transaction was RMB 1480 million. From June 2018 to September 2021, the cumulative net profit attributable to the listed company of Jiahua information was RMB 287 million.
According to the principle of prudence, Zjbc Information Technology Co.Ltd(000889) indicates that it plans to fully withdraw the impairment provision for the book value of the long-term equity investment of Jiahua information of RMB 1.48 billion. At the same time, due to the loss of control of Jiahua information, Zjbc Information Technology Co.Ltd(000889) has been unable to exercise the rights of shareholders and affect the return amount, and the original relevant rights and interests may not be realized. The company plans to include the accumulated net profit attributable to the listed company of RMB 287 million realized from June 2018 to September 2021 into the investment loss.
To sum up, Zjbc Information Technology Co.Ltd(000889) said that due to the loss of control of Jiahua information and the company no longer included it in the scope of consolidated statements, based on the principle of prudence, the company plans to withdraw an asset impairment provision of RMB 1.480 billion for the balance of long-term equity investment of Jiahua information and recognize an investment loss of RMB 287 million, there is no financial “big bath”. subsequently, the company will finally confirm the impairment amount and investment profit and loss of the long-term equity investment according to the arbitration award and carry out corresponding accounting treatment.
The accountant said that because Zjbc Information Technology Co.Ltd(000889) could not provide the financial data of Jiahua information, it was unable to master the actual operation, asset status, potential risks and other information of Jiahua information. At present, Zjbc Information Technology Co.Ltd(000889) was in arbitration with the original shareholders of Jiahua information, and it was unable to judge whether the impairment provision for long-term equity investment and the amount of investment loss recognized were appropriate.
In addition, Zjbc Information Technology Co.Ltd(000889) also announced that it had conducted an asset impairment test. Zjbc Information Technology Co.Ltd(000889) indicates that the asset impairment test is the asset impairment test of the underlying asset at the expiration of the performance commitment period according to the relevant restructuring agreement, which is a necessary procedure for fulfilling the obligations of the restructuring agreement. At present, Jiahua information is out of control and is no longer included in the scope of the company’s consolidated statements. Therefore, the results of this asset impairment test have no significant impact on the company’s financial report in 2021, and there is no “big bath” through the provision of goodwill impairment in the corresponding year.
On December 20, 2021, Zjbc Information Technology Co.Ltd(000889) issued the announcement on the loss of control of wholly-owned subsidiaries, which said that the company was unable to obtain the complete financial data of Jiahua information, a wholly-owned subsidiary, and was unable to conduct on-site audit, resulting in the company’s inability to control the major business decisions, personnel and assets of Jiahua information, and in fact lost control of Jiahua information.
On the same day, Shenzhen Stock Exchange issued a letter of concern to Zjbc Information Technology Co.Ltd(000889) asking it to explain its management mode and actual management effect on its business, finance, personnel and major matters since the acquisition of Jiahua information.
Zhongxin Jingwei noted that Zjbc Information Technology Co.Ltd(000889) issued announcements on December 28, 2021 and January 13, 2022, respectively, requesting an extension of the reply to the letter of concern.
In the secondary market, Zjbc Information Technology Co.Ltd(000889) shares fell 4.41% from the previous trading day to close at 3.90 yuan. So far, its total market value is 3.652 billion yuan.
