Stock abbreviation: Insigma Technology Co.Ltd(600797) securities code: 600797 No.: 2022-003 Insigma Technology Co.Ltd(600797)
Announcement on receiving the inquiry letter from Shanghai Stock Exchange
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.
On January 26, 2022, the company received the inquiry letter on Insigma Technology Co.Ltd(600797) performance forecast issued by Shanghai Stock Exchange (szgh [2022] No. 0069). The relevant contents are hereby announced as follows:
“ Insigma Technology Co.Ltd(600797) ：
After hours on January 26, 2022, your company submitted a performance loss advance announcement, saying that the company expects the net profit in 2021 to be - 630 million yuan to - 540 million yuan, mainly due to the provision for impairment of goodwill formed by the acquisition of Huatong cloud data. In accordance with article 13.1.1 and other relevant provisions of the stock listing rules of the exchange, your company is hereby requested to verify and disclose the following information.
1. The announcement disclosed that in 2021, affected by the continuous decline of the accelerated business of Internet resources, the business layout, pricing mode and price reduction of IDC and cloud computing service key customers, the performance of Huatong cloud data decreased significantly, and the future profitability was lower than expected. The company plans to make provision for goodwill devaluation, which is expected to reduce the net profit by 570 million yuan to 660 million yuan. The company is requested to make supplementary disclosure: (1) analyze and explain the changes of main financial data such as revenue and profit of Huatong cloud data over the years since the acquisition, the reasons for the difference from the profit forecast, and whether the relevant factors can be expected in the early stage in combination with the orders on hand, market demand, dependence on key customers, changes in the competition pattern and the operation of Companies in the same industry; (2) The detailed process of this goodwill impairment test, including key assumptions, main parameters, prediction indicators and specific conditions, whether there are significant changes and reasons in the selection of relevant assumptions, parameters and indicators compared with the acquisition and early impairment test; (3) Combined with the above situation, fully explain the reason and rationality of the large amount of goodwill impairment provision made by chinacloud data this time.
2. According to the previous announcement, the company acquired Huatong cloud data in 2017 and formed a goodwill of 1.262 billion yuan. In 2018, 2019 and 2020, the provision for goodwill impairment was 51 million yuan, 350 million yuan and 237 million yuan respectively. As of June 30, 2021, the ending balance of goodwill was 624 million yuan. In response to the inquiry letter of the 2019 annual report of the exchange, the company announced that the provision for goodwill impairment from 2017 to 2019 during the performance commitment period was sufficient and accurate. In the impairment test at the end of 2019, the revenue growth rate of Huatong cloud data from 2020 to 2023 was predicted to be 10.64%, 15.53%, 12.79% and 13.09%. The company is requested to make supplementary disclosure: (1) in combination with the performance changes since the acquisition, the dependence of key customers and the goodwill impairment test process, explain whether the prediction of future performance growth of Huatong cloud data in the previous impairment test is reasonable and based, whether the provision for goodwill impairment is sufficient and accurate, and whether there is improper accounting adjustment; (2) After the expiration of the performance commitment, the reason and rationality of the continuous large-scale impairment of the goodwill of Huatong cloud data, and whether the previous performance is true and accurate; (3) Combined with the accumulated investment and profit and loss, explain whether the early acquisition decision is prudent, whether the directors, supervisors and senior managers are diligent and responsible, and whether there are potential interest arrangements for relevant transaction parties.
Please disclose this inquiry letter immediately after receiving the letter. Your company shall earnestly implement the requirements of this inquiry letter, disclose the reply content within 5 trading days, and do a good job in the preparation and disclosure of subsequent annual reports. "
The company will promptly reply to the inquiry letter and disclose it in accordance with the requirements of Shanghai Stock Exchange. The information disclosure media designated by the company are China Securities News, Shanghai Securities News, securities times and the website of Shanghai Stock Exchange (www.sse. Com. CN), The information about the company shall be subject to the information published in the above designated media. Please pay attention to the follow-up announcement of the company and pay attention to the investment risk.
It is hereby announced.
Insigma Technology Co.Ltd(600797) board of directors January 26, 2002
