Securities code: 603779 securities abbreviation: Weilong Grape Wine Co.Ltd(603779) Announcement No.: 2022-005
Weilong Grape Wine Co.Ltd(603779)
Announcement on the scrapping treatment, provision for impairment and write off of bad debts of some assets of the company in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Weilong Grape Wine Co.Ltd(603779) (hereinafter referred to as "the company") was held on January 24, 2022
At the 9th interim meeting of the 5th board of directors and the 7th interim meeting of the 5th board of supervisors, the proposal on the disposal of part of the company's assets scrapping, provision for impairment and write off of bad debts in 2021 was considered and adopted. The proposal needs to be submitted to the first extraordinary general meeting of shareholders in 2022 for deliberation. The relevant information is hereby announced as follows:
1、 Overview of scrapping of some assets, provision for impairment and write off of bad debts
(I) overview of scrapping of some assets
1. In January 2022, the company carried out a comprehensive property inventory, based on the inventory results and in combination with the quality of products
According to the market sales situation and production process requirements, the packaging materials that can not meet the quality requirements of the company in terms of revision, revision, elimination of varieties and product technology, as well as the inventory goods with long inventory time and slow-moving sales have been cleaned up. The physical verification and accounting verification shall be carried out for some fixed assets with long service life, which cannot be repaired or whose maintenance value is too high, damaged, idle and old, and long-term deferred expenses that cannot be amortized. After the study of the management and relevant management personnel, it is decided to write off the scrapping at the end of 2021.
2. The apple base of Wuwei Weilong organic grape planting Co., Ltd. is located in the south edge of Tengger Desert, Qingyuan Town, Liangzhou District, covering an area of 4844.66 mu. The main varieties are dwarf King forest, xinnonghuang, ASUS and jinxiuhong, and the rootstock is Begonia, M26 is an intermediate rootstock (according to relevant research reports, when the temperature of M26 dwarf intermediate rootstock drops to - 28 ℃, the grade II of branch freezing injury accounts for 66.7%, and when the temperature drops to - 32 ℃, the grade III of branch freezing injury accounts for 92.9%). The cold resistance of M26 dwarf seedlings is poor, which is not conducive to the safe overwintering of trees.
In case of continuous low temperature in winter and spring (the low temperature in winter in normal years in the region is - 24 ℃ to - 26 ℃, which has exceeded that of apples
The northern limit of cultivation is - 14 ℃), the land is thawed too late and the atmosphere is dry, which increases the risk of safe overwintering of trees. In 2020, the lowest temperature in winter was - 26.2, and the spring was warm and dry. Nearly 80% of the trees died when they were dried up. It was decided to scrap and write off at the end of 2021
3. Pear tree mu in Qingyuan base of Wuwei Weilong organic grape planting Co., Ltd. (see attachment for specific plot information)
Table), the plot belongs to leaky sandy land, with strong permeability, poor water and fertilizer retention, low survival rate, weak tree potential and additional foundation
The labor force around the land has decreased year after year, the employment is extremely difficult, and the labor price, utilities and management expenses have increased year after year,
There will be serious losses for consecutive years in the continuous management. It is decided to scrap and write off 2861.23 mu of land with low survival rate at the end of 2021.
4. Since 2017, the company has successively tried to graft and plant "gehaina" varieties in three vineyards
As of December 31, 2021, 829.8 mu (55.32 hectares) were planted, and the book value is as follows:
Project original value (AUD) amortization (AUD) book value (AUD)
Grafting gehaina (yanggen) in 2017 $784725.74 $55584.73 $729141.01
In 2017, gehaina (Nunan) $474251.40 $33592.85 $440658.55 was grafted
Grafted in 2018 gehaina (Nunan) $470180.08 $11754.49 $458425.59
Grafted Ge Haina (yanggen) in 2018 $763260.34 $19081.52 $744178.82
Internal development $166290.74
Domestic development expenses transferred to immature biological assets $103120.19 $103120.19
Total $2761828.49 $120013.59 $2641814.90
Note: the average exchange rate of Australian dollar in December was 4.5566.
The estimated clean-up cost is $1200 / ha, totalling $66384.00.
It is estimated that the loss of scrapped gehaina is a $2708198.90.
In the actual planting, it was found that the variety grew weakly and did not adapt to the local soil and dry and hot climate
Conditions, especially poor disease resistance, and the yield is lower than the average level of other varieties; After trial production, brewing
The quality of the original wine is general, which does not reflect the unique advantages of this variety. If retained for a long time, additional costs will be added
Management costs, and diseases and pests will spread to other varieties, thus affecting the health of the whole vineyard
Maintenance poses a threat. It is decided to write off the scrap at the end of 2021.
After the study of the management and relevant management personnel, it is decided to scrap the above biological assets at the end of 2021.
The above forecast data are only preliminary accounting data, and the specific and accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company.
(attachment: details of scrapped assets of the company)
(II) overview of provision for estimated impairment
As of December 31, 2021, the book balance of the company's inventory is 584531785.48 yuan, including raw materials, inventory goods, issued goods and low value consumables. The company's inventory falling price reserves shall be withdrawn according to the difference between the inventory cost and its net realizable value; The net realizable value is determined by the estimated selling price of inventory minus the estimated selling expenses and relevant taxes in daily activities. When the provision for inventory falling price is made, raw materials, goods in stock and goods delivered are withdrawn by category, calculated according to a certain estimated percentage of inventory purchase cost, and increase with the increase of commodity stock age. Based on the principle of prudence, the company conducted an impairment test on the category where the inventory cost is higher than the net realizable value during the reporting period.
After testing, the provision for inventory falling price in the reporting period was 117051304.82 yuan. The types and amounts of impairment are shown in the following table:
Name amount
Original wine 93431080.55
Stock 65# alcohol 19555795.47
Finished products 2027070.91
Productive biological assets 2037357.89
Total 117051304.82
The above forecast data are only preliminary accounting data, and the specific and accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company.
(III) overview of bad debt write off
In order to truly reflect the company's financial situation, in accordance with the accounting standards for business enterprises and other relevant regulations, the company cleared up the accounts receivable and other receivables at the end of December 2021, including 24 accounts receivable, totaling 13960915.05 yuan. Due to the customer's arrears for more than three years, the company still failed to collect through various ways and channels, and the company accrued the impairment in full according to the aging of accounts receivable, Bad debt losses have actually occurred,; There are 3 other receivables, totaling 102631.98 yuan. Due to the company's intention to cancel the cooperation between the subsidiary and supermarkets and outlets providing drinking water, network and other services for the subsidiary for a long time, and the failure of business negotiation between the company and customers, the deposit paid in the early stage cannot be recovered and the expenses for handling relevant affairs after illegal guarantee.
The total amount of the above receivables is 14063547.03 yuan, and the accrued bad debt reserves are 14063547.03 yuan
The remaining book value is 0 yuan, which is determined to be written off by the management after study.
The above forecast data are only preliminary accounting data, and the specific and accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company.
Details of scrapped assets of the company
Unit: Yuan
Project scrap loss
Houses and buildings 30921.83
Machinery and equipment 395340.39
Tools and appliances 32442.37
Means of transport 104584.03
Electronic equipment 30424.68
Package 1739327.58
Wooden barrel 1497626.95
Other materials 376278.78
Biological assets 69825284.11
Total 74032230.72
The above forecast data are only preliminary accounting data, and the specific and accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company.
2、 The impact of asset scrapping, accrued estimated liabilities and bad debt write off on the company
The scrapping of some assets will reduce the profit by 74032230.72 yuan; The provision for impairment will reduce the profit by 117051304.82 yuan and the net profit affected by the merger by 161383610.14 yuan (excluding income tax expenses). The bad debt write off meets the requirements of the actual situation and accounting policies of the company, and the write off will not have a significant impact on the current profit and loss of the company.
The above data of asset scrapping, provision for impairment and bad debt write off are only preliminary accounting data. The specific and accurate financial data are subject to the audited annual report of 2021 officially disclosed by the company.
3、 Opinions of the board of directors
In 2021, the scrapping, impairment and bad debt write off of some assets comply with the actual situation of the company's assets and relevant policies and regulations. After the impairment and bad debt write off of some scrapped assets, the company can more fairly and truly reflect the asset status of the company, and the accounting information of the company's asset value will be more authentic, reliable and reasonable.
4、 Opinions of the board of supervisors
According to the audit, the basis for scrapping, provision for impairment and bad debt write off of some assets of the company is sufficient, in line with the accounting standards for business enterprises and relevant systems of the company, in line with the actual situation of the company, fairly reflects the asset value and operating results of the company, and the accounting information of the company will be more true, accurate and reasonable. The decision-making procedure of the board of directors of the company on this proposal complies with the relevant provisions of relevant laws and regulations, and the board of supervisors agrees with the scrapping of some assets, provision for impairment and write off of bad debts of the company.
5、 Opinions of independent directors
In 2021, the company followed the principle of prudence in the scrapping, provision for impairment and bad debt write off of some assets. The scrapping, provision for impairment and write off methods comply with the accounting standards for business enterprises. This scrapping, provision for impairment and bad debt write off of some assets will more truly and accurately reflect the financial situation of the company. When the board of directors of the company deliberates the above proposals, the relevant decision-making procedures are legal and effective. We agree to the proposal on the scrapping of some assets, provision for impairment and write off of bad debts of the company in 2021.
6、 Opinion of the board of Auditors
In 2021, the company followed the principle of prudence in the scrapping treatment, provision for impairment and bad debt write off of some assets, and the scrapping treatment and provision method were in line with the accounting standards for business enterprises
