New Hope Liuhe Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
On April 29, 2026, the Company convened the 14th meeting of the 10th Board of Directors, which approved the proposal on the provision for asset impairment. The specific circumstances are announced as follows:
I. Overview of the Provision for Asset Impairment
(1) Reasons for the Provision
In accordance with the "Enterprise Accounting Standards" and the Company's relevant accounting policies, to fairly reflect the value of various assets, an impairment test was conducted on all assets as of March 31, 2026, based on the principle of prudence. When the recoverable amount of the assets is expected to be lower than their carrying amount, an impairment provision is recognized or measured.
(2) Scope and Total Amount of the Provision
As a result of the test, the Company recognized an asset impairment provision of CNY 636.23 million for various assets from January to March 2026, detailed as follows:
| Item | Amount (CNY million) |
|---|---|
| Credit Impairment | 34.93 |
| - Bad Debt Provision for Accounts Receivable | 21.24 |
| - Bad Debt Provision for Other Receivables | 13.69 |
| Asset Impairment | 601.30 |
| - Provision for Inventory Decline | 601.30 |
| Total | 636.23 |