Stock Code: 002297 Stock Abbreviation: Boyun New Materials Serial Number: 2026-011 Hunan Boyun New Materials Co., Ltd. Announcement on Accrual of Asset Impairment Provisions for 2025 The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and contains no false records, misleading statements, or major omissions. Hunan Boyun New Materials Co., Ltd. (hereinafter referred to as the "Company") held the twenty-fifth meeting of the seventh Board of Directors on April 8, 2026, and reviewed and approved the "Proposal of Hunan Boyun New Materials Co., Ltd. on Accruing Asset Impairment Provisions for 2025". In accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and the "Articles of Association" of the Company, the details of the asset impairment provisions accrued this time are hereby announced as follows: I. Overview of Asset Impairment Provisions Accrued This Time To objectively, fairly, and accurately reflect the Company's financial position and the value of its assets in 2025, in accordance with the "Enterprise Accounting Standards" and the Company's relevant accounting policies, and based on the principle of prudence, the Company has conducted an inventory of relevant assets such as accounts receivable, inventory, and intangible assets, performed impairment tests by asset category, and accrued impairment provisions for assets showing signs of impairment. The asset items for which impairment provisions are accrued this time are mainly accounts receivable, inventory, and intangible assets. The total impairment provisions accrued are RMB 49.0384 million, with a reversal of impairment losses of RMB 12.126 million. The total impact on the Company's profit and loss is a reduction in total profit of RMB 36.9124 million. The details of the accrual are shown in the table below: Unit: RMB Category Item Amount incurred in 2025 Provisions for various impairment losses included in credit impairment loss Provision for bad debts of notes receivable Provision for bad debts of accounts receivable Provision for bad debts of other receivables Subtotal Provision for bad debts of contract assets Provision for inventory price decline Provision for impairment of intangible assets Subtotal 441, 711.44 19,990,989.28 -68,517.38 20,364,183.34 -10,964.76 19,375,061.30 9,310,158.10 28,674,254.64 Total accrual for the period Reversal of impairment losses for the period Total impact on profit 49,038,437.98 12,126,054.99 -36,912,382.99 II. Basis for Accruing Asset Impairment Provisions This Time According to "Enterprise Accounting Standards No. 1 - Inventory" and the Company's inventory accounting policy: Inventory is measured at the lower of cost and net realizable value at the balance sheet date. If the net realizable value is lower than the cost, an inventory price decline provision is accrued. According to "Enterprise Accounting Standards No. 8 - Asset Impairment" and the Company's asset impairment accounting policy: If an asset shows signs of impairment, its recoverable amount shall be estimated. The recoverable amount shall be determined as the higher of the net amount of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. If the measurement of the recoverable amount indicates that the recoverable amount of the asset is lower than its book value, the book value of the asset shall be reduced to the recoverable amount. The amount of the reduction shall be recognized as an asset impairment loss and included in the current period's profit or loss, and the corresponding asset impairment provision shall be accrued simultaneously. According to "Enterprise Accounting Standards No. 22 - Recognition and Measurement of Financial Instruments" and the Company's financial instrument recognition and measurement accounting policy: For financial assets measured at amortized cost and accounts receivable financing measured at fair value with changes recognized in other comprehensive income, loss provisions shall be recognized based on expected credit losses. III. Specific Details of Accruing Asset Impairment Provisions (I) Provisions for impairment losses included in credit impairment loss Based on expected credit losses, the Company performs impairment testing and recognizes impairment losses for accounts receivable, notes receivable, and other receivables. Based on the risk characteristics, aging structure, and collection status of the above receivables in 2025, after comprehensive assessment and calculation, the total provisions for various impairment losses included in credit impairment loss are RMB 20.3642 million. (II) Provisions for impairment losses included in asset impairment loss The Company measures inventory at the lower of cost and net realizable value. When determining the net realizable value of inventory, it is based on conclusive evidence, and also considers the purpose of holding the inventory and the impact of subsequent events after the balance sheet date. An inventory price decline provision is accrued for the difference between the inventory cost and the net realizable value. For inventory where the cost is expected to be unrecoverable due to market changes, technological iteration, quality reasons, or sales prices below cost, an inventory price decline provision is extracted. At the balance sheet date, if the factors that caused the previous reduction in inventory value have disappeared, the amount of the reduction shall be reversed and reclassified within the amount of the previously accrued inventory price decline provision. After testing, the Company accrued an inventory price decline provision of RMB 19.3751 million for the period. According to the measurement results of the Company's relevant asset impairment projects, the recoverable amount of intangible assets is lower than their book value. The book value of intangible assets is reduced to the recoverable amount, and the amount of the reduction is recognized as an asset impairment loss, included in the current period's profit or loss, and the corresponding asset impairment provision is accrued. The Company accrued intangible asset impairment provisions of RMB 9.3102 million for the period. The Company conducted an impairment test on contract assets at the end of the year. After prudent evaluation, the contract asset impairment provision accrued for the period was RMB -0.011 million. The sum of the impairment provisions for these four types of assets included in asset impairment loss is RMB 49.0384 million. IV. Impact of Asset Impairment Provisions Accrued This Time on the Company The total asset impairment provisions accrued this time are RMB 49.0384 million, and the reversal of impairment losses for the period is RMB 12.126 million, resulting in a total reduction of RMB 36.9124 million in the Company's consolidated profit before tax for 2025. The accrual of asset impairment provisions for the above assets is conducive to objectively reflecting the Company's financial position, is well-founded and reasonable, complies with the "Enterprise Accounting Standards" and the Company's relevant accounting policies, is consistent with the Company's actual situation, and does not harm the interests of the Company and its shareholders. V. Statement of the Board of Directors' Audit Committee on Accruing Asset Impairment Provisions The Board of Directors' Audit Committee believes that the asset impairment provisions accrued by the Company this time comply with the provisions of the "Enterprise Accounting Standards" and the Company's relevant accounting policies, are based on the principle of prudence, are well-founded, and conform to the Company's asset status. They fairly reflect the Company's financial position, asset value, and operating results as of December 31, 2025, making the Company's accounting information more reasonable. The Board of Directors' Audit Committee agrees to the asset impairment provisions accrued this time. VI. Statement of the Board of Directors on Accruing Asset Impairment Provisions The Board of Directors believes that the asset impairment provisions accrued this time comply with and conform to the provisions of the "Enterprise Accounting Standards" and the "Shenzhen Stock Exchange Stock Listing Rules". The accrual of asset impairment provisions this time is based on the principle of prudence, is well-founded, and fairly reflects the Company's financial position, asset value, and operating results as of December 31, 2025, making the Company's accounting information on asset value more true and reliable. VII. Documents for Reference
- Resolution of the twenty-fifth meeting of the seventh Board of Directors of Hunan Boyun New Materials Co., Ltd.;
- Statement of the Board of Directors' Audit Committee of Hunan Boyun New Materials Co., Ltd. on the Company's Accrual of Asset Impairment Provisions. Hereby announced. Hunan Boyun New Materials Co., Ltd. Board of Directors April 8, 2026