Source of this article: Times Business School Author: Chen Jiaxin
Source | Times Business School
Author | Chen Jiaxin
Edit | Zheng Shaona
Editor's note: A thunderclap rose on the ground, and Vientiane was updated in an instant. As the 2023 earnings season comes to an end, a phenomenon that cannot be ignored has emerged: the number of listed companies with goodwill impairment losses has increased in 2023, and many companies have suffered huge losses as a result. Goodwill impairment not only affects a company's net profit, but can also lead to a decline in stock prices, a decline in credit ratings, and even a shake in investor confidence. The joys and sorrows that emerge in the annual report reflect the vitality and changes of the A-share capital market, and only by continuously optimizing management and prudent decision-making can listed companies gain a firm foothold in this test and achieve sustainable development.According to Flush iFinD data, in 2023, among the more than 5,300 listed companies in A-shares, 916 listed companies will suffer goodwill impairment losses, a year-on-year increase of 7.64%, accounting for 17.08% of the total number of listed companies.
However, the number of companies has increased at the same time as the amount has decreased. In 2023, the total goodwill impairment loss of A-share listed companies will be 62.8 billion yuan, a year-on-year decrease of 20.97%. Among them, the goodwill impairment loss of 3 listed companies exceeded 1 billion yuan, reaching a maximum of 8.169 billion yuan, and 14 had a goodwill impairment loss of 500 million ~ 1 billion yuan.
It is worth noting that in 2023, 95 listed companies will fully accrue goodwill impairment losses (reflected in the zeroing of goodwill at the end of the period).
In 2023, Ninestar (002180. SZ) ranked first in A-shares with a goodwill impairment loss of 8.159 billion yuan, and its huge goodwill loss was not unrelated to a "snake swallowing elephant" merger and acquisition in 2016.
According to the announcement, in 2016, the joint investors led by Ninestar acquired 100% of the shares of Lexmark International, Inc. (hereinafter referred to as "Lexmark International") for a consideration of 2.7 billion US dollars, with an acquisition premium of 182.25%. The goodwill generated by the acquisition of Ninestar amounted to 18.772 billion yuan, while at the end of 2015, Ninestar's total assets were only 3.119 billion yuan. In 2017, due to the sale of the equity of Lexmark International's software business company, Ninestar transferred the corresponding goodwill of 4.418 billion yuan. As of the end of 2022, the goodwill generated by the acquisition of Lexmark International was still 12.485 billion yuan, accounting for 95.25% of Ninestar's total goodwill. In 2023, Lexmark International's net profit will be a huge loss of 8.944 billion yuan, a year-on-year decrease of 6481.16%. As a result, Ninestar made a provision for a goodwill impairment loss of RMB7.884 billion to Lexmark International, accounting for 96.63% of the total goodwill impairment loss.
In terms of industries,
In 2023, the goodwill impairment loss of listed companies in the computer industry will be relatively high, reaching 13.662 billion yuan, which is related to the high amount of goodwill impairment loss of Ninestar in the industry. furthermore
Pharmaceutical and biological, electronic, mechanical equipment, mediaand other industries with a similar amount of goodwill impairment losses.
In 2023, the goodwill impairment losses of the above-mentioned 916 listed companies will account for 9.25% of their total profits, of which 327 listed companies will have net profit losses, 6 will have losses of more than 5 billion yuan, and the highest loss will be 12 billion yuan.
Although 17% of listed companies have incurred goodwill impairment losses in 2023, but
up to At the end of 2023, the total goodwill of A-shares is still as high as 1.25 trillion yuan, and nearly half of the listed companies (47.22%) have goodwillThe risk of subsequent goodwill impairment should not be underestimated.
(1306 words)
Disclaimer: This report is intended for use by Times Business School clients only. The Company does not consider the recipient to be a client by virtue of receipt of this report. This report has been prepared on the basis of publicly available information that the Company believes to be reliable, but the Company does not guarantee the accuracy or completeness of such information. The opinions, assessments and forecasts contained in this report reflect the views and judgments expressed as of the date of publication. The Company does not guarantee that the information contained in this report will be kept up to date. The information contained in this report may be modified without notice, and investors should pay attention to the corresponding updates or modifications. The Company strives to be objective and fair in the content of the report, but the views, conclusions and recommendations contained in this report are for informational purposes only and do not constitute an offer or solicitation to buy or sell the securities described. Such views and recommendations do not take into account the specific investment objectives, financial situation and specific needs of individual investors and do not constitute private investment advice to clients at any time. Investors should fully consider their own specific circumstances and fully understand and use the contents of this report, and should not regard this report as the sole factor in making investment decisions. Neither the Company nor the author shall be liable for any consequences arising from the reliance on or use of this report. To the best of their knowledge, the Company and the author have no legally prohibited interest in the securities or investment targets referred to in this report. To the extent permitted by law, the Company and its affiliates may hold positions and trade in securities issued by the companies mentioned in the report, and may provide or seek to provide investment banking, financial advisory or financial products and other related services. The copyright of this report is only owned by the Company. Without the written permission of the company, no institution or individual shall infringe the company's copyright in any form such as reprinting, copying, publishing, quoting or redistributing it to others. If the quotation and publication are carried out with the consent of the Company, they shall be used within the permitted scope, and the source shall be indicated as "Times Business School", and this report shall not be quoted, abridged or modified in any way contrary to the original intention. The Company reserves the right to pursue such liabilities. All trademarks, service marks and marks used in this report are trademarks, service marks and marks of the Company.