Securities Code: 002305 Securities Abbreviation: *ST Nan Zhi Announcement Number: 2026-012
Nan Guo Real Estate Co., Ltd. Announcement on Provision for Asset Impairment
The Company and all members of its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed in this announcement, and that there are no false records, misleading statements, or material omissions.
In accordance with the "Accounting Standards for Business Enterprises" and the relevant provisions of the accounting policies of Nan Guo Real Estate Co., Ltd. (hereinafter referred to as the "Company"), the Company conducted impairment tests on assets with impairment indicators as of December 31, 2025. In accordance with the principle of prudence, impairment provisions have been made for assets that may incur impairment losses. The main situation is as follows:
I. Provision for Asset Impairment This Time
The Company has made an impairment provision of 20,821.14 million yuan for assets with impairment indicators in 2025. The impairment items for 2025 are listed below:
| Subject | Amount of Impairment Provision (Million Yuan) | Reason for Impairment |
|---|---|---|
| I. Right-of-use Asset Impairment Provision | 15,032.61 | In accordance with the provisions of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", long-term equity investments, investment properties measured at cost, fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful lives, oil and gas assets, and other long-term assets, if there are impairment indicators at the balance sheet date, an impairment test shall be conducted. If the results of the impairment test show that the recoverable amount of the asset is lower than its carrying amount, the difference shall be recognized as an impairment provision and included in impairment loss. |
| II. Long-term Equity Investment Impairment Provision | 3,588.55 | In accordance with the provisions of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", long-term equity investments, investment properties measured at cost, fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful lives, oil and gas assets, and other long-term assets, if there are impairment indicators at the balance sheet date, an impairment test shall be conducted. If the results of the impairment test show that the recoverable amount of the asset is lower than its carrying amount, the difference shall be recognized as an impairment provision and included in impairment loss. |