I. Situation of Provision for Asset Impairment for 2025
To truly reflect the financial status and operational situation of Guangdong Jinlong Development Co., Ltd. (hereinafter referred to as "the Company") as of December 31, 2025, and according to the "Enterprise Accounting Standards" and the Company's accounting policies, the Company conducted a review of various assets as of December 31, 2025. The Company and its controlling shareholder, Zhongshan Securities Co., Ltd. (hereinafter referred to as "Zhongshan Securities"), have estimated the total provision for asset impairment for 2025 to be CNY 1,993,279.74, with a total provision amounting to CNY 5,380,892.04, detailed as follows:
| Item | Initial Amount | Current Period Amount | Decrease in Current Period | Reversal | Amount for the Period |
|---|---|---|---|---|---|
| Provision for receivables | 230,935,287.17 | 427,937.70 | 143,584.84 | 1,521,096.96 | 229,698,543.04 |
| Provision for investment | 289,283.93 | 1,107,297.18 | 1,366,811.51 | ||
| Other asset impairment | 488,044.86 | 488,044.86 | 890,583.74 | ||
| Provision for uncollectible debts | 106,000.00 | 106,000.00 | |||
| Provision for commercial debts | 58,919,362.60 | 58,919,362.60 | |||
| Provision for fixed assets | 2,825,626.47 | 2,825,626.47 | |||
| Total | 293,944,890.10 | 1,993,279.74 | 2,537,307.20 |