Audit Committee of Sanbian Technology Co., Ltd. Explanation on the Reasonableness of the Company's Provision for Asset Impairment
To accurately reflect the company's financial position and operating conditions as of March 31, 2026, in accordance with the "Shenzhen Stock Exchange Stock Listing Rules," "Accounting Standards for Business Enterprises," 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 indicators as of the end of the first quarter of 2026, including inventory and receivables. Asset impairment tests were performed, and provisions for potential asset impairment losses were made. The details of the asset impairment provisions for the first quarter of 2026 are as follows:
The total amount of asset impairment provisions made by the Company in the first quarter of 2026 is RMB 13,432,200.20. After this provision, the Company's net profit for the first quarter of 2026 will decrease by RMB 13,432,200.20, and the consolidated statement attributable to the parent company's owners' equity will decrease by RMB 13,432,200.20. The asset impairment provisions made by the Company in this quarter have not been audited by an accounting firm. The final figures are subject to the audited financial data from the accounting firm.
The Company has provided detailed information regarding the provision for asset impairment in the first quarter of 2026 and has 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 regulations of the "Accounting Standards for Business Enterprises" and the Company's relevant accounting policies. This provision for asset impairment is based on the principle of prudence, is well-supported, and fairly reflects the Company's financial position, asset value, and operating results as of March 31, 2026.