Securities abbreviation: Shanghaichengdiconstructioncorporationltd(603887) securities code: 603887 Announcement No.: 2022-010 bond abbreviation: city land convertible bond bond bond Code: 113596
Shanghaichengdiconstructioncorporationltd(603887)
Suggestive announcement on the proposed provision for impairment of goodwill
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.
In order to more objectively and truly reflect the financial status and asset value of Shanghaichengdiconstructioncorporationltd(603887) (hereinafter referred to as “the company” or ” Shanghaichengdiconstructioncorporationltd(603887) “), according to the relevant provisions of accounting standards for Business Enterprises No. 8 – asset impairment, accounting supervision risk tips No. 8 – goodwill impairment and the company’s accounting policies, through the preliminary evaluation and calculation of a third-party professional evaluation company, Based on the principle of prudence, the company plans to make provision for impairment of relevant goodwill of its holding subsidiary Xiangjiang Technology Co., Ltd. (hereinafter referred to as “Xiangjiang technology”). According to the relevant provisions of the Listing Rules of Shanghai Stock Exchange, the specific conditions are hereby announced as follows: I. overview of the proposed provision for goodwill impairment this time
1. Formation of goodwill
The original book value of Xiangjiang technology’s goodwill is 1464311100 yuan. The formation of goodwill is Shanghaichengdiconstructioncorporationltd(603887) M & A of Xiangjiang technology, and the paid consideration is greater than the fair value share of identifiable net assets enjoyed on the M & a date.
2. Historical provision for goodwill impairment
According to the relevant provisions of the accounting standards for business enterprises and the company’s accounting policies, after the implementation of the above mergers and acquisitions, the company will judge the impairment signs and conduct impairment tests on the goodwill at the end of each year according to the relevant evaluation reports issued by Watson (Beijing) International Evaluation Company.
As of December 31, 2020, the company has not made provision for impairment of the goodwill.
2、 The proposed provision for impairment of goodwill
Xiangjiang technology, a holding subsidiary, is mainly engaged in cloud infrastructure related services. Its core business covers equipment manufacturing, engineering planning and design, engineering construction and implementation, system operation and maintenance, industry investment and value-added services, so as to realize the service capacity of the whole industrial chain of the data center.
In 2021, the construction of some projects of the company was delayed, and the price of upstream raw material copper increased rapidly, resulting in the simultaneous decline of Xiangjiang technology business income and profit margin. The main contents are as follows:
1. As the receivables of Huitian, Nanfaxin and other customer projects undertaken failed to be collected before December 31, 2021, it is estimated that the bad debt provision is about 70 million yuan according to the aging analysis method;
2. The commencement of Guangzhou Liangguang phase I, Shanghai Yunbai and digital Yangzhong projects was delayed due to Party A, and the revenue was not recognized within the reporting period, which had an impact on the profit of about 80 million yuan;
3. The price of copper and sector increased, and the price increase of this part was about 55 million yuan.
Unit: 10000 yuan
Project category / sales revenue 2019 2020 2021
(12 / 31, Unaudited)
IDC equipment and solutions 98417.44 113336.66 80425.37
IDC system integration (Engineering Construction) 46890.33 79519.37 39001.84
IDC operation management and value-added services 16254.33 16950.95 16142.51
Operating data
Operating income 161604.71 209835.44 135569.72
Net profit 27564.12 29089.33 7500.00
Judging from the current market environment, the profit margin of Xiangjiang technology cannot return to the historical level in the short term. According to the principle of prudence, it is estimated that the company plans to withdraw an impairment provision of 450 million yuan to 650 million yuan for its goodwill
3、 The impact of the proposed provision for goodwill impairment on the company
The company plans to make a provision for goodwill impairment of RMB 450 million to RMB 650 million, which is included in the company’s consolidated profit and loss in 2021, affecting the company’s consolidated net profit attributable to shareholders of listed companies of RMB 450 million to RMB 650 million in 2021, As of December 31, 2021, the company’s consolidated owner’s equity attributable to shareholders of listed companies will be affected accordingly, ranging from 45 million yuan to 65 million yuan. After the provision for impairment of goodwill is made this time, the book value of goodwill of Xiangjiang technology is about 814311100 yuan ~ 1014311100 yuan.
The company’s proposed provision for goodwill impairment has not been confirmed by the asset appraisal institution and audited by the accounting firm. The final data shall be subject to the evaluation report and the data approved by the accounting firm.
4、 Risk tips
The amount of goodwill impairment provision to be withdrawn this time is obtained from the prediction and analysis of the impact of the future market environment and business expectation on Xiangjiang technology according to the preliminary calculation of the evaluation organization. Subsequently, the company will issue a special evaluation report on the goodwill test at the end of the reporting period according to the year-end final accounts, which will be confirmed after audit by the audit institution.
Please pay attention to investment risks.
It is hereby announced.
Shanghaichengdiconstructioncorporationltd(603887) board of directors January 26, 2022
