Securities code: 000949 securities abbreviation: Xinxiang Chemical Fibre Co.Ltd(000949) Announcement No.: 2022-001 Xinxiang Chemical Fibre Co.Ltd(000949)
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、 Provision for asset impairment
In order to truly and accurately reflect the financial status of Xinxiang Chemical Fibre Co.Ltd(000949) and its subsidiaries (hereinafter referred to as "the company") as of December 31, 2021 and the operating results of 2021 (hereinafter referred to as "the reporting period"), the company, in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, through The fixed assets and other assets were comprehensively checked, analyzed and tested. In 2021, the provision for bad debts of accounts receivable and other receivables was 6.4436 million yuan, the provision for inventory falling price was 10.6826 million yuan, and the provision for impairment of fixed assets was 112.279 million yuan, totaling 116.518 million yuan.
2、 Description of provision for asset impairment
The provision for asset impairment is as follows:
Unit: RMB 10000
Accrued amount of the project in 2021
1、 Bad debt provision
Accounts receivable -641.39
Other receivables -2.97
Subtotal -644.36
2、 Inventory falling price reserves
Inventory 864.58
Raw materials 203.68
Subtotal 1068.26
3、 Provision for impairment of fixed assets
Houses and buildings 409.75
Machinery and equipment 10818.15
Subtotal 11227.90
Total 11651.80
(I) credit impairment loss
1. Accounts receivable
Except for the accounts receivable that are individually assessed for credit risk, other accounts receivable are divided into different combinations (mainly aging combinations), and the credit impairment loss is accrued by simple method. The accrual proportion is determined by referring to the historical credit loss rate and in combination with the future economic situation and other forward-looking information.
Due to the aging of accounts receivable and other factors, the bad debt provision of accounts receivable in 2021 was reversed by 6.4139 million yuan.
As of December 31, 2021, the provision for bad debts of accounts receivable has accumulated to 53.5704 million yuan.
2. Other receivables
The bad debt provision of other receivables is withdrawn according to the general method of expected credit loss (three-stage model), and the bad debt provision at the end of the period is reversed by 29700 yuan.
As of December 31, 2021, the bad debt provision for other receivables has accrued 6.717 million yuan.
(II) asset impairment loss - inventory falling price reserves
At the end of each quarter, the company measures the inventory according to the lower of inventory cost and net realizable value, and carries out impairment test and provision for inventory.
The net realizable value of inventory goods is the estimated selling price minus the estimated selling expenses and relevant taxes; Materials held for production shall be measured at cost when the net realizable value of finished products produced by them is higher than the cost; When the decrease of material price indicates that the net realizable value of finished products is lower than the cost, the net realizable value is the estimated selling price minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes. Sales expenses and related taxes are recognized with reference to the actual expenses in the reporting period.
In 2021, the company conducted an impairment test on inventories. Some finished products such as viscose filaments with specifications and grades and some raw materials with long stock age were impaired, and the inventory falling price reserve was made up by 10.6826 million yuan.
As of December 31, 2021, the provision for inventory falling price has accumulated to 22.9402 million yuan.
(III) asset impairment loss - impairment of fixed assets
According to the accounting standards for Business Enterprises No. 8 - asset impairment and relevant accounting policies of the company, the company conducted impairment test on fixed assets at the end of the year, and accrued the impairment of fixed assets of 112.279 million yuan. The main details are as follows:
1. Houses and buildings
The total original value of warehouses, pump rooms, recovery pools, fences and other houses and buildings in the carbon disulfide storage area is 5.0658 million yuan, and the net book value at the end of the period is 2.5523 million yuan. This batch of assets is planned to be transferred to liquidation. After testing, the impairment of fixed assets is 2.299 million yuan at the end of the reporting period.
In addition, six VTBR biochemical towers and tower foundations in the water supply and drainage workshop were transferred to clean up in the reporting period, and the original value of this batch of assets
9.4276 million yuan, with a net book value of 2.0813 million yuan and an impairment of 1.7985 million yuan.
The total asset impairment of houses and buildings in the reporting period was 4.0975 million yuan.
2. Machinery and equipment
(1) 6000 tons and 12000 tons of spandex fiber production equipment, staple production line supporting equipment and other fixed assets
The 6000 ton and 12000 ton spandex fiber production lines and the supporting equipment of the eliminated short silk production line - the second raw liquid workshop in the new area, have been put into operation early, backward technology, high energy consumption, low operation efficiency, high production cost and weak product competitiveness. The company decided to transform and utilize some of the equipment in the above production lines, and eliminate the rest.
The company hired Henan Zhengyuan comprehensive assets Real Estate Appraisal Co., Ltd. to evaluate the above assets and issued the asset evaluation report of some machinery and equipment projects involved in the Xinxiang Chemical Fibre Co.Ltd(000949) proposed asset impairment test (Yu Zheng Ping Bao Zi [2022] No. 010), and accrued impairment reserves for the impaired fixed assets according to the evaluation report. The original value of this batch of fixed assets was 374.8561 million yuan, the net book value was 110.9431 million yuan, and the impairment was 97.449 million yuan.
(2) Scrapped machinery and equipment
At the end of the reporting period, the impairment test was carried out on the scrapped fixed assets that have been transferred into liquidation. The original value of this part of assets was 3.8212 million yuan, the net book value was 1.494 million yuan, and the impairment was 1.303 million yuan.
(3) Flood damaged machinery and equipment
The original value of the main equipment of the two grey cloth production lines of the subsidiary Xinxiang Xinglu Technology Co., Ltd. was 29.645 million yuan, with a net book value of 14.6415 million yuan. Due to the serious damage caused by the flood on July 22, one production line continued to be used after maintenance, and 30 looms of the main equipment of the other production line were transferred to cleaning at the end of the period. At the end of the reporting period, the impairment of this batch of equipment was 9.4295 million yuan.
During the reporting period, the company and its subsidiaries accrued a total asset impairment of 108.1815 million yuan for machinery and equipment.
3、 Impact on the company's financial position
The total provision for asset impairment is 116.518 million yuan, reducing the total profit of the company in 2021 by 116.518 million yuan. The company's provision for asset impairment this time has not been audited by an accounting firm.
It is hereby announced.
Xinxiang Chemical Fibre Co.Ltd(000949) board of directors January 26, 2022
