Announcement on Provision for Asset Impairment for the Year 2025
Shenzhen Huansheng Century Co., Ltd. (hereinafter referred to as "the Company") held the fifth meeting of the Audit Committee of the 10th Board of Directors and the third meeting of the 10th Board of Directors on April 28, 2026, where it reviewed and approved the proposal on the provision for asset impairment for the year 2025. The specific circumstances of the asset impairment provision are announced as follows:
I. Overview of the Asset Impairment Provision
(1) Reasons for the Provision, Scope of Assets, Total Amount, and Reporting Period
In accordance with the "Enterprise Accounting Standards," the China Securities Regulatory Commission's "Accounting Regulatory Risk Reminder No. 8 - Goodwill Impairment," the "Shenzhen Stock Exchange Listing Rules," the "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 1 - Business Handling," and the Company's accounting policies, to accurately reflect the Company's financial status, asset value, and operating results as of December 31, 2025, and based on the principle of prudence, the Company and its subsidiaries conducted a comprehensive review and impairment testing of fixed assets, intangible assets, long-term equity investments, inventories, goodwill, receivables, and other receivables. For the year 2025, the Company plans to recognize an impairment provision of 49.03 million yuan for accounts receivable, other receivables, inventories, contract assets, and other related assets within the scope of the consolidated financial statements. The specific details are as follows:
| Asset Name | Impairment Provision Amount | Percentage of Audited Net Profit Attributable to Shareholders (%) |
|---|---|---|
| Inventory Impairment Loss | -37,143.56 | 147.23 |
| Contract Asset Impairment Provision | 33,542.95 | 132.96 |
| Subtotal | -3,600.61 | 14.27 |
| Credit Impairment Loss | ||
| Accounts Receivable Bad Debt Provision | 990.80 | 3.93 |
| Other Receivables Bad Debt Provision | -2,293.51 | 9.09 |
| Subtotal | -1,302.71 | 5.16 |
| Total | -4,903.32 | 19.44 |
The reporting period for the proposed asset impairment provision is from January 1, 2025, to December 31, 2025. The Company and all members of the Board of Directors ensure that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.