Produced by Radar Finance and Economics Lei Zhu Bar |Shan Shan, edDeep sea
On January 30, China Heavy Industry Co., Ltd. issued an announcement on the provision for asset impairment.
On January 30, 2024, China Heavy Industry Co., Ltd. held the 28th meeting of the 5th Board of Directors and the 17th meeting of the 5th Board of Supervisors, and deliberated and approved the "Proposal on Provision for Asset Impairment".
In order to objectively reflect the company's financial position and operating results in 2023, in accordance with the "Accounting Standards for Business Enterprises" and other relevant regulations, based on the principle of prudence, the company and its subsidiaries conducted impairment tests on relevant assets that may show signs of impairment at the end of 2023. After testing, the company intends to make a total of RMB 8 for asset impairment in 2023600 million yuan.
At the end of 2023, the company carried out impairment tests on assets with signs of impairment, and the large impairment was mainly concentrated in the construction contracts of civil ships. The Company has re-calculated the estimated total revenue and estimated total cost of all types of ships in hand, and the selection criteria and basis of important assumptions and key parameters in the calculation process are consistent with those of previous years.
According to the test results, the company will make an inventory impairment provision for some shipbuilding products in hand in 2023, with a total amount of 8600 million yuan. Among them, Dalian Shipbuilding Industry Group has made a provision for inventory price decline of 61.6 billion yuan, Wuchang Shipbuilding Heavy Industry Group made a provision for inventory price decline 12.3 billion yuan, China Shipbuilding Group Qingdao Beihai Shipbuilding *** provision for inventory decline 1$2.1 billion.
As for the reason for the provision, China Heavy Industry said that during the reporting period, the company undertook new ship types such as large liquefied natural gas (LNG) carriers, new floating production, storage and offloading (FPSO), and some container ships, which had high technical content, complex construction technology, and unforeseen cost increases, so the company conducted an impairment test at the end of 2023 and made corresponding provisions for inventory price decline.
Regarding the impact of provisioning, China Heavy Industry said that in 2023, the company intends to make an asset impairment provision of 8600 million yuan, and the provision for impairment is intended to be fully included in the company's 2023 operating results, reducing the company's total profit in 2023 by 8600 million yuan, the specific data is subject to the audited 2023 annual report disclosed by the company.
It is worth noting that on December 29, 2023, China Heavy Industry received the "Administrative Penalty Decision" (2023 No. 15) issued by the Beijing Supervision Bureau of the China Securities Regulatory Commission. Due to the failure to accurately accrue the impairment of the inventory of its subsidiaries in the corresponding accounting period, resulting in misstatement in the annual reports of China Heavy Industry in 2018, 2019 and 2020, the Beijing Securities Regulatory Bureau decided: 1. Give a warning to China Heavy Industry and impose a fine of 1.5 million yuan; 2. Give Wang Liang a warning and impose a fine of 600,000 yuan; 3. Yao Zuhui was given a warning and fined 600,000 yuan.
In this regard, Yu Jun, a lawyer at Sichuan Dingzhong Law Firm, told Radar Finance that if the misconduct of a listed company causes losses to investors, the injured investors can claim compensation in accordance with the law. Investors who hold China Heavy Industries** during the period from April 28, 2019 to July 12, 2023** and hold China Heavy Industries** on July 12, 2023** can do so through the public account"Let's help"(Lei Zhu Code: 66) to sign up and participate in the claim for free. There are no fees until you receive the claim.
Tianyancha shows that the business scope of China Heavy Industry includes investment management; Ships, ship ancillary products, marine engineering and equipment, energy equipment, transportation equipment.