Impairment Losses - For the fiscal year ending December 31, 2024, the company recognized impairment losses of approximately RMB 36.2 million for trade and other receivables, and RMB 21.4 million for loans receivable[4]. - The total impairment loss recognized for trade receivables was RMB 38.0 million, which includes RMB 25.2 million from receivables due from Dexin China and RMB 12.8 million from other trade receivables[6]. - The outstanding balance of trade receivables as of December 31, 2024, was approximately RMB 506.3 million, with an estimated total impairment loss of RMB 76.1 million, representing 15.0% of the outstanding balance[7]. - The outstanding balance of other receivables, excluding deposits, was approximately RMB 111.2 million, with an estimated total impairment loss of RMB 11.6 million, representing 10.5% of the outstanding balance[7]. - The impairment loss for loans receivable of RMB 21.4 million is related to a loan agreement with Hangzhou Ruiyang Supply Chain Management Co., with an outstanding loan amount of RMB 259.5 million[8]. - The total impairment losses for trade and other receivables and loans receivable amounted to RMB 57.6 million for the fiscal year ending December 31, 2024[5]. Credit Risk Assessment - The company has engaged an independent valuer to assess expected credit losses (ECL) in accordance with IFRS 9, which combines historical and forward-looking data to estimate potential losses[12]. - The independent valuer's assessment method involves grouping receivables based on aging and applying historical default rates adjusted for current and forward-looking macroeconomic conditions[13]. - The estimated default risk exposure (EAD) for trade receivables has significantly increased, primarily due to customers facing liquidity constraints, leading to extended payment cycles[19]. - The estimated probability of default (PD) for related parties and private third-party customers has risen substantially, reflecting the deteriorating financial conditions in affected industries[19]. - A more prudent credit risk assessment approach will be adopted before providing loans to any third parties, given the sufficient expected credit loss provisions[22]. Recovery and Collection Strategies - The company plans to continuously evaluate the financial risks and regulatory requirements associated with the recovery of deposits during the liquidation process[11]. - The company plans to follow up on long-term overdue trade receivables and may consider legal action for amounts overdue by more than one year[21]. - The company will seek to revise payment terms and credit periods with major customers to prevent further increases in overdue receivables[21]. - The company will establish a debt collection department starting in 2024 to implement internal debt collection policies and avoid bad debts, creating repayment plans based on specific customers' financial situations[23]. Financial Projections and Valuations - The expected credit loss (ECL) for the year is approximately RMB 14,393,000, which will not be carried forward to the fiscal year ending December 31, 2025[20]. - Recovery rates applied across methods range from 0.00% to 100%, depending on the specific circumstances of liquidation, litigation, collateral, and cash recovery[16]. - The forward-looking adjustment factor applied is 1.10, based on regression analysis using macroeconomic indicators such as industrial value added and purchasing manager index[17]. - The discount rate used for cash flow projections is 4.15%, reflecting the company's borrowing cost[18]. - The aging analysis shows transition rates for overdue receivables ranging from 14.27% to 88.82%[17]. Asset Valuation - The assessed value of additional assets, consisting of 783 underground parking spaces, is approximately RMB 99,040,000 as of December 31, 2024[24]. - The assessed value of mortgaged assets, which are parking spaces, totals approximately RMB 139,050,000 as of December 31, 2024[24]. - The company plans to provide a loan of no more than RMB 315 million to the borrower according to the loan agreement established on December 16, 2022[27].
德信服务集团(02215) - 2025 - 年度业绩