114 companies hide “goodwill thunder” media is still the hardest hit area

On December 24, due to the continuous deterioration of the operating conditions of the four acquired companies, the company suddenly planned to withdraw a huge amount of goodwill impairment, and the stock price of digital technology fell by 19.93%. < p > < p > according to the data of tonghuashun, by the end of the third quarter of 2020, the scale of goodwill of all A-shares totaled 1.28 trillion yuan, accounting for 2.84% of the net assets (shareholders’ equity), and the amount and proportion of goodwill decreased compared with the same period of the previous two years. However, the reporter of the economic information daily also noted that there are still 114 companies whose goodwill accounts for more than 50% of the net assets (shareholders’ equity), and the risk of impairment is high. Among them, there are 27 in the media field, accounting for nearly a quarter. Industry insiders remind that for listed companies with large scale and many early M & A activities, if their acquisition target performance is lower than expected, they need to be alert to the risk of goodwill impairment. < p > < p > the Shenzhen Stock Exchange issued a letter of concern on the 24th, requiring the company to list the specific items, time, amount of goodwill formed by the merger and acquisition of assets and the situation of goodwill impairment provision over the years; check the authenticity of the early performance of the merger and acquisition target, and explain whether the company’s goodwill impairment provision in previous years is sufficient; explain whether the company has any progress in this report period Industry performance “big bath” situation. < / P > < p > according to the announcement of digital science and technology, through the preliminary investigation and calculation of its financial department, as of November 30, 2020, the goodwill formed by the company’s acquisition of BBHI company is 5627677100 yuan, the goodwill formed by the company’s acquisition of peers on the same day and month is 332367100 yuan, the goodwill formed by the acquisition of jinzhilu is 85038400 yuan, and the goodwill formed by the acquisition of Dingyuan Xingguang is 5560800 yuan. The operating conditions of the above companies continue to deteriorate It is estimated that the amount of impairment will be about RMB 5.6 billion to 6.1 billion. According to the third quarter report, the net profit in the first three quarters was only 16.75 million yuan, a year-on-year decrease of 97%. Among them, BBHI’s net profit in the first three quarters was 70.1233 million yuan, a year-on-year decrease of 83.54%. At the close of the day on the 24th, the total market value of the company was only 5.086 billion yuan, and the share price of the company has dropped nearly 40% in the year. < / P > < p > in addition to digital technology, many companies recently announced the provision of goodwill impairment. On the 12th, xinlitai announced that due to the public health incidents and the unsuccessful procurement of coronary stents, the future operating profit of Suzhou Huanchen, a wholly-owned subsidiary, was adversely affected, and the sustainability of the adverse effects was uncertain. As a result, xinlitai will withdraw 283 million yuan of goodwill impairment from Suzhou Huanchen. On the 14th, * ST Hanye announced that Yanlong technology, the company’s holding subsidiary, failed to meet its expectations in terms of operating conditions and declining performance. The company may have the risk of withdrawing goodwill impairment and credit impairment loss. The amount of impairment provision is about 718 million yuan. At present, the company’s share price is less than 2 yuan. < / P > < p > “in some companies with flash collapse, the proportion of goodwill is too high and the quality of assets is poor. Once the operation is not good, they will face a huge risk of goodwill impairment. According to the accounting standards for business enterprises, goodwill is not subject to amortization, but it needs to be tested for impairment at the end of each year in the future. In addition to the possible macro environmental factors, the reasons for goodwill impairment include not fulfilling the commitment during the performance commitment period, not having to whitewash the statements after the performance commitment period expires, and some mergers and acquisitions involve interest transmission An auditor pointed out that “for companies with high goodwill, investors should remain cautious.” According to the data of tonghuashun, by the end of the third quarter of 2020, the scale of goodwill of all A-share listed companies totaled 1.28 trillion yuan, accounting for 2.84% of the net assets. Compared with 1.39 trillion yuan and 3.40% in 2019 and 1.44 trillion yuan and 4.04% in 2018, the proportion of goodwill decreased. < / P > < p > the overall goodwill impairment risk of a shares has been released year by year, but from a local point of view, individual sectors are still under great pressure. According to the data, as of the end of the third quarter of 2020, the absolute value of the goodwill scale of Chinese medicine biology, media and computer in Shenyi industry ranked first, with 150.819 billion yuan, 122.605 billion yuan and 108.044 billion yuan respectively. In terms of the proportion of goodwill in net assets, the media industry and leisure service industry are the two largest “minefields”, accounting for 18.91% and 18.06% respectively, while the computer industry and pharmaceutical and biological industry are 16.01% and 10.31% respectively. < / P > < p > from the perspective of individual stocks, as of the end of the third quarter, 114 listed companies’ goodwill accounted for more than 50% of their net assets. Among them, there are 27 in the field of media, accounting for nearly a quarter, and 19 in the field of medicine and biology, 14 in the field of mechanical equipment and 12 in the field of computer. Among them, * ST Yingfang, with goodwill of 4662 million yuan and owner’s equity of 99900 yuan belonging to the parent company, takes the lead, with goodwill accounting for 462341.72% of net assets; Huayi Jiaxin, St Zhongan, Zhongying Internet and Ziguang XueDa account for more than 1000%; in addition, * ST Hengkang, Rendong holding shares and other 21 companies account for more than 100%. < / P > < p > in recent years, high goodwill companies are also the focus of supervision. In August this year, the “measures for the risk classification management of Listed Companies in Shenzhen Stock Exchange” stipulates 12 situations in which the classification level of listed companies shall not be normal, and the third one is “the proportion of goodwill at the end of the period in net assets exceeds 50%”. In addition, the guidelines for the standardized operation of Listed Companies in Shenzhen Stock Exchange (revised in 2020) also adds relevant disclosure provisions on asset impairment or write off of assets, and requires companies to identify signs of goodwill impairment and conduct goodwill impairment test at least annually. < / P > < p > some organizations point out that there are two “hidden reefs” in high Goodwill: one is that companies generally have greater discretion on whether, when and how much goodwill will be impaired; at the same time, goodwill is different from amortization, the impairment loss only reflects the current year, and amortization will have an impact on the profits and losses of future years. Therefore, goodwill has become the operating principle of listed companies Second, from the perspective of asset realization, goodwill is not a real asset, which can not be sold or realized alone, and can not be used for real debt repayment. High goodwill is easy to underestimate the debt level. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.