Sanbian Technology Co., Ltd. Audit Committee Explanation on the Reasonableness of the Company's Provision for Asset Impairment
To truthfully reflect the company's financial status and operating conditions as of December 31, 2025, in accordance with the "Shenzhen Stock Exchange Stock Listing Rules," "Enterprise Accounting Standards," and relevant company accounting policies and regulations, Sanbian Technology Co., Ltd. (hereinafter referred to as the "Company") and its subsidiaries conducted a comprehensive review of assets with potential impairment signs as of the end of 2025, including inventory and accounts receivable, and performed impairment tests. Impairment provisions were made for assets with potential impairment losses. The situation of asset impairment provisions for 2025 is as follows:
In 2025, the Company's total provision for asset impairment amounted to RMB 5,721,012.46. This provision reduced the net profit attributable to the parent company by RMB 5,721,012.46 and reduced the owner's equity by RMB 5,721,012.46 in 2025.
The Company has provided detailed information regarding the provision for asset impairment in 2025 and made full explanations on relevant matters. As members of the Company's Audit Committee, we have reviewed and examined the relevant materials. We believe that this provision for asset impairment complies with the provisions of the "Enterprise Accounting Standards" and the Company's relevant accounting policies. This provision for asset impairment is based on the principle of prudence, is well-supported by sufficient evidence, and fairly reflects the Company's financial status, asset value, and operating results as of December 31, 2025.