Securities code: 002106 securities abbreviation: Shenzhen Laibao High-Tech Co.Ltd(002106) Announcement No.: 2022-002 Shenzhen Laibao High-Tech Co.Ltd(002106)
Announcement on provision for asset impairment of participating subsidiaries
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.
On January 21, 2022, Shenzhen Laibao High-Tech Co.Ltd(002106) (hereinafter referred to as “the company”) received the notification letter on the provision for asset impairment of Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd. from the joint-stock subsidiary Chongqing Shenhua Film Technology Co., Ltd. (hereinafter referred to as “Chongqing Shenhua”), in accordance with the relevant provisions of the accounting standards for business enterprises, According to the resolution of the seventh meeting of the second board of directors of Chongqing Shenhua, Chongqing Shenhua has accrued an impairment provision of RMB 1418180400 for the relevant assets of its 306mw CIGS Cecep Solar Energy Co.Ltd(000591) battery module industrialization project (hereinafter referred to as the “project”). According to the Listing Rules of Shenzhen Stock Exchange (revised in 2022) and other relevant provisions, the relevant information of Chongqing Shenhua’s provision for asset impairment is hereby announced as follows:
1、 Overview of Chongqing Shenhua’s provision for asset impairment this time
(I) reasons for Chongqing Shenhua’s current provision for asset impairment
At present, the photovoltaic module market is dominated by crystalline silicon products. After nearly 20 years of industrial development, crystalline silicon photovoltaic modules have matured the industrial chain and rapidly reduced the cost through efficiency improvement, technological innovation and market scale development. The main product of Chongqing Shenhua 306mw copper indium gallium selenium Cecep Solar Energy Co.Ltd(000591) battery module industrialization project – copper indium gallium selenium thin film photovoltaic cell module product has weak R & D strength, slow improvement of product conversion efficiency, immature industrial chain, and its unit production cost is higher than the mature crystalline silicon Cecep Solar Energy Co.Ltd(000591) photovoltaic cell module on the market. If the project is put into operation, Chongqing Shenhua will face fierce competition for crystalline silicon Cecep Solar Energy Co.Ltd(000591) photovoltaic products, resulting in upside down between revenue and cost, resulting in large losses.
Copper indium gallium selenium photovoltaic cell module has the advantages of safety and beauty. Its products have unique advantages in the application of photovoltaic building curtain wall (i.e. “BIPV”). At present, some cities have carried out attempts to use photovoltaic curtain wall in buildings. Subject to the complexity of the construction industry and the constraints of current specifications, it is impossible to have large-scale explosive growth in the short term.
Based on the above situation, according to the resolution of the shareholders’ meeting of Chongqing Shenhua, Chongqing Shenhua will not continue to build the 306mw copper indium gallium selenium Cecep Solar Energy Co.Ltd(000591) battery module industrialization project. The project is currently at a standstill. According to the relevant provisions of the accounting standards for business enterprises, it is
Truly and accurately reflect the asset status, financial status and operation of Chongqing Shenhua as of December 31, 2021. According to the resolution of the seventh meeting of the second board of directors of Chongqing Shenhua, it is agreed to withdraw an impairment provision of RMB 1418180400 for the relevant assets of the 306mw copper indium gallium selenium Cecep Solar Energy Co.Ltd(000591) battery module industrialization project of Chongqing Shenhua as of December 31, 2021. (II) scope and amount of Chongqing Shenhua’s current provision for asset impairment
Chongqing Shenhua’s assets with provision for impairment this time are 306mw Cu in GA se Cecep Solar Energy Co.Ltd(000591) battery module industrialization project. The specific assets involve Chongqing Shenhua’s current assets and non current assets (including prepayments, other receivables, fixed assets, projects under construction, engineering materials, etc. related to Cu in GA se Cecep Solar Energy Co.Ltd(000591) battery module industrialization project).
On January 21, 2022, Chongqing Shenhua held the 7th Meeting of the second board of directors, which deliberated and adopted the proposal on withdrawing provision for asset impairment, It is agreed that Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd. shall make provision for impairment of 1418.1804 million yuan according to the appraisal and consultation value in the appraisal and Consultation Report No. [2021] Hu No. 849 issued by Yinxin Asset Appraisal Co., Ltd. after the provision for impairment is made, the owner’s equity of Chongqing Shenhua shareholders will be -264.9382 million yuan, The final impairment amount shall be subject to the audit report issued by the accounting firm hired by Chongqing Shenhua. 2、 Impact of Chongqing Shenhua’s provision for asset impairment on the company and risk tips
The company designated the equity investment in Chongqing Shenhua as non tradable equity instrument investment measured at fair value with its changes included in other comprehensive income. As of December 31, 2021, the book value of such equity instrument investment was 125 million yuan.
According to the relevant provisions of the accounting standards for business enterprises and the preliminary accounting of the company’s financial department, Chongqing Shenhua’s provision for asset impairment this time will reduce the fair value of other equity instrument investments affecting the company by 125 million yuan as of December 31, 2021. The decrease in the fair value of such other equity instrument investments will be included in other comprehensive income that cannot be reclassified into profit and loss in the future, It does not affect the company’s net profit attributable to the shareholders of the listed company in 2021, but affects the company’s total assets and net assets by 125 million yuan as of December 31, 2021. The final amount affected shall be subject to the audit report issued by the accounting firm hired by the company.
The company will timely fulfill the obligation of information disclosure according to the progress of relevant matters. Please pay attention to the investment risks.
3、 Documents for future reference
1. Notification letter on the provision for asset impairment of Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd. sent by Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd
2. Resolution of the 7th Meeting of the 2nd board of directors of Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd
It is hereby announced
Shenzhen Laibao High-Tech Co.Ltd(002106)
Board of directors
January 22, 2022
