Stock Code: 002083
Stock Abbreviation: Furui Co., Ltd.
Announcement Number: Lin 2026-022
Furui Group Co., Ltd. (hereinafter referred to as "the Company") and all members of the board of directors and senior management guarantee that the content of this announcement is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
On April 7, 2026, the Company convened the 25th meeting of the 8th Board of Directors, which reviewed and approved the proposal on changes in the Company's accounting estimates. According to relevant regulations, the specific situation is announced as follows:
1. Overview of the Change in Accounting Estimates
The Company's functional coating materials business and lithium battery electrolyte additive business (hereinafter referred to as "new materials business") are developing rapidly, with a customer base that significantly differs from that of the home textile business. The credit risk of accounts receivable in this business segment is much higher than that of the home textile business. As the scale of the new materials business expands, the balance of accounts receivable has rapidly increased. Continuing to apply the bad debt provision standards of the home textile industry would result in a significant deviation between the bad debt provisions for accounts receivable in the new materials business and the actual situation, leading to insufficient bad debt provisions for the Company.
To more accurately reflect the potential bad debt losses of the Company's receivables and to fairly represent the Company's financial condition and operating results, as well as to provide more reliable and accurate accounting information, the Company has changed the expected credit loss rates used for provisioning bad debts based on the credit risk characteristics and aging combinations of receivables. This change in accounting estimates will take effect from January 1, 2025.
Before Change: