Hunan Friendship Apollo Commercial Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions. In accordance with the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules," the Company has made provisions for impairment losses on relevant assets that may incur losses based on the "Enterprise Accounting Standards" and the Company's related accounting policies. The specific situation is announced as follows:
Overview of Provision for Impairment Losses
According to the requirements of the "Enterprise Accounting Standards" and the "Shenzhen Stock Exchange Stock Listing Rules," the Company, based on the principle of prudence, has analyzed the assets within the scope of the consolidated financial statements as of December 31, 2025, and made provisions for impairment losses on relevant assets that may incur losses. The Company and its subsidiaries have made provisions for asset and credit impairment totaling CNY 323.76 million for accounts receivable, loans and advances, inventory, fixed assets, and other non-current assets that show signs of impairment in 2025. The details are as follows:
| Item | Current Period Provision Amount (CNY 10,000) |
|---|---|
| 1. Bad Debt Provision | 56.73 |
| Accounts Receivable Bad Debt Provision | 0.02 |
| Other Receivables Bad Debt Provision | 56.71 |
| 2. Provision for Loans and Advances | 7.52 |
| 3. Asset Impairment Provision | 259.51 |
| Inventory Impairment Provision | 102.50 |
| Fixed Assets Impairment Provision | 24.45 |
| Long-term Deferred Expenses Impairment Provision | 120.74 |
| Investment Property Impairment Provision | 11.82 |
| Total | 323.76 |