Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd
Securities code: 300134 securities abbreviation: Anhui Tatfook Technology Co.Ltd(300134) Announcement No.: 2022-005 Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd
Announcement on the provision for asset impairment in 2021
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 the provision for asset impairment this time (I) reasons for the provision for asset impairment this time
The provision for asset impairment of Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd. (hereinafter referred to as “the company”) is made in accordance with the accounting standards for business enterprises and the relevant provisions of the company’s accounting policies. The company and its subsidiaries conducted a comprehensive inventory of various inventories, receivables, fixed assets, construction in progress, intangible assets and other assets at the end of 2021, and fully evaluated and analyzed the net realizable value of various inventories, the possibility of recovery of receivables, and the variability of fixed assets, construction in progress and intangible assets, It is considered that some of the above assets have certain signs of impairment. Based on the principle of prudence, the company shall make provision for impairment of relevant assets that may suffer from asset impairment losses. (II) asset scope and total amount of the current provision for asset impairment
After the company and its subsidiaries conducted a comprehensive inventory and asset impairment test of assets with possible signs of impairment at the end of 2021 (including accounts receivable, inventory, fixed assets, long-term equity investment and goodwill), the provision for impairment of various assets in 2021 totaled about 96 million yuan, as shown in the following table:
Unit: 10000 yuan
Increase in current year decrease in current year
Amount at the beginning of the year and other amounts at the end of the year
Reversal or decrease of new amount and provision
1、 Bad debt provision 16678.46 — 200.00 805.00 15673.46
2、 Inventory falling price reserves 12386.22 – 6300.00 5700.00 12986.22
3、 Provision for impairment of fixed assets 1376.90 – 3500.00 4876.90
4、 Provision for impairment of long-term equity investment 62797.00 – 62797.00
5、 Provision for impairment of intangible assets 1738.06 – 1738.06
6、 Provision for impairment of goodwill 2999.74 – 2999.74
Total 976.38 – 9600.00 6505.00 101071.38
Note: the “newly added amount” in the column of “increase in this year” in the table refers to the asset impairment loss accrued by the newly acquired enterprise of the company on the merger date of this year; “Accrued amount” refers to the asset impairment loss accrued by enterprises within the consolidation scope of the company this year. 2、 Impact of the current provision for asset impairment on the company
The provision for asset impairment will reduce the net profit attributable to the shareholders of the listed company by about 78 million yuan in 2021 and the net profit of the parent company by about 33 million yuan in 2021.
Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd
3、 The recognition standard and withdrawal method of the provision for asset impairment this time
The provision for asset impairment withdrawn this time includes inventory depreciation provision, bad debt provision, fixed asset impairment provision, etc. In 2021, the company made provision for inventory falling price of about 63 million yuan. The recognition standard and withdrawal method of the company’s inventory falling price reserves are: after the company makes a comprehensive inventory of the inventory at the end of each period, the inventory falling price reserves are withdrawn or adjusted according to the lower of the cost and net realizable value of the inventory. The net realizable value of finished products, goods in stock, materials for sale and other goods inventories directly for sale shall be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses and relevant taxes in the normal process of production and operation; For the inventory of materials that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated cost to be incurred at the time of completion, estimated selling expenses and relevant taxes; The net realizable value of inventories held for the execution of sales contracts or labor contracts is calculated based on the contract price. If the quantity of inventories held is more than the quantity ordered in the sales contract, the net realizable value of excess inventories is calculated based on the general sales price. At the end of the period, the inventory falling price reserves are accrued according to a single inventory item; However, for the inventory with large quantity and low unit price, the inventory falling price reserves shall be withdrawn according to the inventory category; If the inventories are related to the product series produced and sold in the same region, have the same or similar end use or purpose, and are difficult to be measured separately from other items, the inventory falling price reserves shall be accrued jointly. If the factors affecting the previous write down of inventory value have disappeared, the amount of write down shall be restored and reversed within the amount of inventory falling price reserve originally withdrawn, and the reversed amount shall be included in the current profit and loss.
In 2021, the company made bad debt provision of about -2 million yuan. The method of making bad debt provision is as follows: the company’s receivables include accounts receivable and other receivables. On the balance sheet date, the company conducted a separate impairment test on the receivables with significant single amount, and there are objective evidences indicating that they have been impaired, According to the difference between the present value of its future cash flow and its book value, the impairment loss is recognized and the bad debt provision is withdrawn.
For accounts receivable that have not been impaired through independent test, the bad debt provision shall be withdrawn according to the aging analysis method with the aging as the credit risk feature; For the accounts receivable with insignificant single amount and not impaired after test, the aging analysis method is adopted to recognize the impairment loss and withdraw the bad debt provision according to the aging of the accounts receivable and the specified withdrawal proportion; The receivables with insignificant single amount but high credit risk shall be subject to impairment test separately, and the impairment loss shall be recognized and the bad debt provision shall be withdrawn according to the difference between the present value of future cash flow and its book value. For the receivables without impairment after separate test, the aging analysis method shall be used to recognize the impairment loss according to the aging of receivables and the specified withdrawal proportion.
In 2021, the company made provision for impairment of fixed assets of about 35 million yuan. For non current and non-financial assets such as fixed assets, construction in progress, intangible assets with limited service life, investment real estate measured in cost mode and long-term equity investment in subsidiaries, joint ventures and associated enterprises, the company shall judge whether there are signs of impairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment test shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet reached the usable state shall be subject to impairment test every year regardless of whether there are signs of impairment. 4、 Explanation of the board of directors on whether the provision for asset impairment is in line with the accounting standards for business enterprises
The provision for asset impairment of the company this time complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company, is fully based, reflects the principle of accounting prudence, and is in line with the actual situation of the company. After the provision for asset impairment is withdrawn this time, it can more fairly reflect the company’s assets and operating conditions in 2021, make the company’s accounting information more reasonable, and there is no situation that damages the interests of the company and shareholders. 5、 Opinion of the board of Auditors
The Audit Committee believes that the company’s current provision for asset impairment is based on the principle of prudence
Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd
Fully, after the provision for asset impairment is made, it is conducive to more objectively, fairly and truly reflect the asset status of the company, which is in line with the actual situation of the company and does not damage the interests of the company and all shareholders, especially minority shareholders. The audit committee agrees with the company’s provision for asset impairment this time. 6、 Explanation of the board of supervisors on whether the provision for asset impairment is in line with the accounting standards for business enterprises
The board of supervisors believes that the provision for asset impairment of the company this time complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company. After this provision, it can more objectively, fairly and truly reflect the asset status of the company, and there is no damage to the interests of the company and all shareholders, especially small and medium-sized shareholders. It agrees with the provision for asset impairment of the company this time. 7、 Hint
The provision for asset impairment this time is the result of preliminary communication with accountants, but has not been audited by accounting firms. 8、 Documents for future reference 1 Resolution of the 23rd Meeting of the 4th board of directors of Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd. 2 Resolution of the 17th meeting of the 4th board of supervisors of Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd. 3 The resolution of the seventh meeting of the audit committee of the Fourth Board of directors of Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd. is hereby announced.
Board of directors of Anhui Tatfook Technology Co.Ltd(300134) (Anhui) Co., Ltd
January 25, 2022
