Topwise Information Systems Co., Ltd.
Announcement on Provision for Asset Impairment
The Board of Directors and the management confirm the truthfulness, accuracy, and completeness of the information contained in this report and are jointly and severally liable for any false representations, misleading statements, or material omissions herein.
- Summary of Asset Impairment Provisions for This Period
1.1 Reasons for Provision for Asset Impairment
According to the "Company Law," "Rules for the Preparation of Information Disclosure by Companies Publicly Issuing Securities in Shenzhen," and relevant accounting policies, as of June 30, 2026, based on the asset and liability status, the company and its subsidiaries conducted investigations and assessments of assets and liabilities, and found that certain assets had impairment losses, thus making provisions for asset impairment. The scope of asset impairment provisions for this period includes: inventory, accounts receivable, other receivables, and non-current assets that will become current assets within one year.
After comprehensive investigation and impairment testing, it is estimated that RMB 4,908.03 million in asset impairment will be provided for in the first half of 2026. The detailed table is as follows:
| Asset Name | Provision for Asset Impairment (RMB million) |
|---|---|
| Inventory | 534.30 |
| Other inventory | 588.01 |
| Contract assets | -53.71 |
| Impairment of Intangible Assets | -5442.33 |
| Other intangible assets | 2278.01 |
| Accounts receivable | -7665.22 |
| Other receivables | -81.99 |
| Long-term receivables | -9.36 |
| Non-current assets that will become current assets within one year | -16.23 |
| Total | -4,908.03 |
The provision for asset impairment for this period is based on the reporting period from January 1, 2026, to June 30, 2026.
The provision for asset impairment has been audited by the accounting firm (Special General Partnership).
- Details of Asset Impairment Provisions for This Period
2.1 Inventory Impairment Provision Details
| Project | Book Balance (RMB million) | Impairment Reserve (RMB million) | Book Balance (RMB million) |
|---|---|---|---|
| Raw materials | 20,948.77 | 3,268.35 | 17,680.42 |
| Finished goods | 86,795.98 | 3,400.64 | 83,395.34 |
| Inventory on hand | 9,554.86 | 3,255.10 | 6,299.76 |
| Low-value consumables and consumables | 580.56 | 0.00 | 580.56 |
| Work-in-progress | 4,270.94 | 0.00 | 4,270.94 |
| Total | 122,151.05 | 9,924.09 | 112,226.96 |
2.2 Inventory Impairment Provision Details