Securities Code: 001225 Securities Abbreviation: Hetai Electromechanical Announcement No.: 2026-014
Hangzhou Hetai Electromechanical Co., Ltd.
Announcement on the Provision for Asset Impairment for the Year 2025
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Hangzhou Hetai Electromechanical Co., Ltd. (hereinafter referred to as "the Company") held the 14th meeting of the 2nd Board of Directors on March 26, 2026, and reviewed and approved the proposal on the provision for asset impairment for the year 2025. The relevant information is hereby announced as follows:
I. Overview of the Provision for Asset Impairment
- Reasons for the Provision for Asset Impairment
Based on the principle of prudence, in order to more accurately reflect the asset value and financial condition of the Company as of December 31, 2025, the Company conducted a comprehensive review of various receivables, inventories, and other non-current assets in accordance with the relevant provisions of the "Enterprise Accounting Standards" and the Company's accounting policies. A thorough analysis and assessment of various assets were performed, and provisions for asset impairment were made for relevant assets that may incur impairment losses. - Scope and Amount of the Provision for Asset Impairment
The amount of the provision for asset impairment for the year 2025 is RMB 5,645,072.02, with the specific details as follows:
Unit: RMB
Item Amount I. Credit Impairment Loss (Losses are shown as “-”) -1,232,094.34 Among them: Bad debt loss of accounts receivable -1,191,962.97 Bad debt loss of other receivables -40,131.37 II. Asset Impairment Loss (Losses are shown as “-”) -4,412,977.68 Among them: Inventory write-down loss -4,729,816.46 Impairment loss of contract assets 526,835.12
| Item | Amount |
|---|---|
| Impairment loss of other non-current assets | -209,996.34 |
| Total | -5,645,072.02 |
- Review Procedures
The provision for asset impairment has been reviewed and approved at the 25th meeting of the Audit Committee of the 2nd Board of Directors on March 16, 2026, and at the 14th meeting of the 2nd Board of Directors on March 26, 2026.
II. Confirmation Standards and Provision Methods for the Provision for Asset Impairment - Confirmation Standards and Provision Methods for Expected Credit Losses of Receivables and Contract Assets
(1) Provisioning for expected credit losses of receivables and contract assets based on credit risk characteristics
Determining the portfolio
Portfolio Category | Measurement Method for Expected Credit Losses | Basis
--- | --- | ---
Accounts Receivable - Aging Portfolio | Aging | Based on historical credit loss experience, combined with current conditions and forecasts of future economic conditions, prepare a comparison table of accounts receivable aging and expected credit loss rates to calculate expected credit losses.
Other Receivables - Aging Portfolio | Aging | Based on historical credit loss experience, combined with current conditions and forecasts of future economic conditions, prepare a comparison table of other receivables aging and expected credit loss rates to calculate expected credit losses.
Contract Assets - Aging Portfolio | Aging | Based on historical credit loss experience, combined with current conditions and forecasts of future economic conditions, prepare a comparison table of contract assets aging and expected credit loss rates to calculate expected credit losses.