Shenzhen Qixin Group Co., Ltd. Stock Code: 002301 Stock Abbreviation: Qixin Group www.qx.com Announcement No.: 2026-007 Announcement on Provision for Asset Impairment Losses for 2025 The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free of false records, misleading statements, or major omissions. Shenzhen Qixin Group Co., Ltd. (hereinafter referred to as the "Company") held the sixth meeting of the ninth Board of Directors on April 23, 2026, and reviewed and approved the "Proposal on Provision for Asset Impairment Losses for 2025". To more truthfully and accurately reflect the Company's asset status and financial status as of December 31, 2025, the Company, based on the principle of prudence, conducted a thorough investigation and asset impairment test on assets of the Company and its subsidiaries that may have impairment signs at the end of 2025. Upon the proposal of the Company's management, the Company will provide a total of RMB 67.4076 million for various asset impairment provisions in 2025. The details of the proposal are as follows: I. Overview of the Provision for Asset Impairment Losses In accordance with the "Accounting Standards for Enterprises", the "Notice on How Listed Companies Should Make Provisions for Various Asset Impairments" (Zhengjian Gongsi [1999] No. 138), and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Standardized Operation of Main Board Listed Companies", the Company's second meeting of the ninth Board of Directors held on August 28, 2025, reviewed and approved the "Proposal on Provision for Asset Impairment Losses for the First Half of 2025". According to the resolution, the Company has provided a total of RMB 20.8591 million for various asset impairment provisions as of the end of the first half of 2025. For details, please refer to the "Announcement on Provision for Asset Impairment Losses for the First Half of 2025" (Announcement No.: 2025-030) disclosed on August 30, 2025. To more truthfully and accurately reflect the Company's asset status and financial status as of December 31, 2025, the Company, based on the principle of prudence, conducted a thorough investigation and asset impairment test on assets of the Company and its subsidiaries that may have impairment signs at the end of 2025. Upon the proposal of the Company's management, the Company will provide a total of RMB 67.4076 million for various asset impairment provisions for the full year of 2025. The specific details are as follows:
| Asset Name | Amount of Provision for Asset Impairment Losses for the Current Period (RMB Ten Thousand Yuan) |
|---|---|
| Credit impairment loss | 2,052.70 |
| Of which: Bad debt loss on notes receivable | 22.33 |
| Bad debt loss on accounts receivable | 1,738.15 |
| Bad debt loss on other receivables | 292.22 |
| Asset impairment loss | 4,688.06 |
| Of which: Inventory price decline loss | 1,798.18 |
| Goodwill impairment loss | 2,889.88 |
| Total | 6,740.76 |
| Note: The figures in this announcement are rounded to two decimal places. If the total differs from the sum of the individual items, it is due to rounding. | |
| II. Specific Explanation of the Provision for Asset Impairment Losses | |
| (I) Credit Impairment Loss |
- Notes Receivable The Company individually determines the credit loss for notes receivable that have objective evidence of impairment at the end of the period. When it is not possible to reasonably assess the adequacy of expected credit loss at the individual instrument level at a reasonable cost, the Company classifies notes receivable into several portfolios based on credit risk characteristics, taking into account historical credit loss experience, current conditions, and judgments about future economic conditions, and calculates the expected credit loss based on the portfolio. The basis for determining the portfolios is as follows: Portfolio Name | Basis for Determining Portfolio | Provision Method ---|---|--- Portfolio 1: Bank Acceptance Bills Portfolio | The acceptor has a high credit rating, has never defaulted on bills historically, has an extremely low credit risk, and has a strong ability to fulfill its contractual cash flow obligations in the short term. | Management assesses that the bank acceptance bills held do not have significant credit risk and will not result in major losses due to bank default. Portfolio 2: Commercial Acceptance Bills Portfolio | The acceptor is the Compa