Hangzhou Chuhuan Technology Co., Ltd. (hereinafter referred to as "the Company") has conducted a comprehensive review, analysis, and assessment of various assets within the scope of the consolidated financial statements as of September 30, 2025, in accordance with the "Enterprise Accounting Standards," "Shenzhen Stock Exchange Stock Listing Rules," and the Company's accounting policies. The Company and its subsidiaries have made provisions for asset impairment. The specific matters are announced as follows:
I. Overview of the Provision for Asset Impairment
(1) Situation of the Provision for Asset Impairment
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Reasons for the Provision for Asset Impairment
Based on the principle of prudence, to more accurately reflect the Company's asset value, financial condition, and operational status as of September 30, 2025, the Company and its subsidiaries conducted a comprehensive review of various receivables, inventories, fixed assets, and construction in progress. Based on this review, a thorough analysis and assessment of the realizable value of inventories, the recoverability of receivables, and the realizable value of fixed assets and construction in progress were conducted, leading to the provision for asset impairment. -
Scope, Total Amount, and Reporting Period of the Provision for Asset Impairment
The assets potentially subject to value impairment include accounts receivable, notes receivable, other receivables, long-term receivables, and contract assets. After a comprehensive review and impairment testing of assets that may show signs of impairment as of September 30, 2025, the total provision for impairment amounted to ¥9,488,156.54, covering the reporting period from July 1, 2025, to September 30, 2025. The details are as follows:
| Item | Current Period Provision (July-September) |
|---|---|
| I. Credit Impairment Loss (loss shown as "-") | -9,032,634.17 |
| Among them: Bad debt loss on notes receivable | 990,395.87 |
| Bad debt loss on accounts receivable | -9,796,156.64 |
| Bad debt loss on other receivables | -225,380.51 |
| Bad debt loss on long-term receivables | 56,150.45 |
| Impairment loss on non-current assets due within one year | -57,643.34 |
| II. Asset Impairment Loss (loss shown as "-") | -455,522.37 |
| Among them: Impairment loss on contract assets | -455,522.37 |
| Total | -9,488,156.54 |