Securities Code: 002306 Securities Abbreviation: *ST Yunwang Announcement No.: 2026-025 Zhongke Yunwang Technology Group Co., Ltd. Announcement on Accruing Asset Impairment Provisions for 2025 The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions. To truthfully and accurately reflect the Company's financial status and operating results for 2025, Zhongke Yunwang Technology Group Co., Ltd. (hereinafter referred to as the "Company" or "Zhongke Yunwang") has, in accordance with the "Accounting Standards for Business Enterprises," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Business Handling," and based on the principle of prudence, accrued impairment provisions for relevant assets within the scope of the consolidated financial statements as of December 31, 2025. I. Overview of Asset Impairment Provisions Accrued This Time
- Reasons for Accruing Asset Impairment Provisions This Time In accordance with the requirements of the "Accounting Standards for Business Enterprises," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Business Handling," to truthfully and accurately reflect the Company's financial status, asset value as of December 31, 2025, and operating results for 2025, the Company conducted a comprehensive inspection and impairment test of various assets within the scope of consolidation. Based on the test results and the principle of prudence, the Company intends to accrue asset impairment provisions for assets that may incur impairment losses.
- Scope and Amount of Assets for Which Impairment Provisions Are Accrued and Reversed This Time After a comprehensive investigation and impairment test of assets with potential impairment signs as of the end of 2025 by the Company and its subsidiaries, asset impairment provisions totaling RMB 7,616.66 million are accrued for 2025. Details are as follows: | Project | Amount of Asset Impairment Provisions Accrued for 2025 (RMB million) | | :------------------------------------ | :----------------------------------------------------------------- | | 1. Credit Impairment Loss | 302.68 | | Of which: Bad debt loss on notes receivable | 83.17 | | Bad debt loss on accounts receivable | 129.82 | | Bad debt loss on other receivables | 89.69 | | 2. Asset Impairment Loss | 7,313.98 | | Of which: Goodwill impairment loss | 97.06 | | Fixed asset impairment loss | 1,297.87 | | Construction in progress impairment loss | 5,701.52 | | Intangible asset impairment loss | 217.53 | | 3. Total | 7,616.66 | II. Specific Explanation of Asset Impairment Provisions Accrued This Time (I) Goodwill Impairment Loss In accordance with "Accounting Standards for Business Enterprises No. 8 - Asset Impairment" and "Regulatory Risk Warning No. 8 - Goodwill Impairment," when conducting an impairment test on an asset group or a combination of asset groups that includes goodwill, if there are impairment indicators for the asset group or combination of asset groups that includes goodwill, an impairment test is first conducted on the asset group or combination of asset groups that does not include goodwill. The recoverable amount is calculated and compared with the related carrying amount to confirm the corresponding impairment loss. Then, an impairment test is conducted on the asset group or combination of asset groups that includes goodwill. The carrying amount of the related asset group or combination of asset groups (including the portion of goodwill allocated) is compared with its recoverable amount. If the recoverable amount of the related asset group or combination of asset groups is lower than its carrying amount, goodwill impairment loss is recognized. The Company engaged Jiangsu Huaxin Asset Appraisal Co., Ltd. to conduct an impairment test on the asset group related to goodwill. During the reporting period, the Company accrued goodwill impairment provisions amounting to RMB 97.06 million. (II) Fixed Asset Impairment Loss In accordance with "Accounting Standards for Business Enterprises No. 8 - Asset Impairment," if fixed assets have impairment indicators, their recoverable amount is estimated and an impairment test is conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying amount, the difference is accrued as impairment provisions and included in impairment loss. Asset impairment provisions are calculated and recognized on a single asset basis. If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group to which the asset belongs is used. An asset group is the smallest group of assets that can generate independent cash flows. The Company engaged Jiangsu Huaxin Asset Appraisal Co., Ltd. to conduct an impairment test on fixed assets. During the reporting period, the Company accrued fixed asset impairment provisions amounting to RMB 1,297.87 million. (III) Construction in Progress Impairment Loss In accordance with "Accounting Standards for Business Enterprises No. 8 - Asset Impairment," if construction in progress has impairment indicators, its recoverable amount is estimated and an impairment test is conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying amount, the difference is accrued as impairment provisions and included in impairment loss. The Company engaged Jiangsu Huaxin Asset Appraisal Co., Ltd. to conduct an impairment test on construction in progress. During the reporting period, the Company accrued construction in progress impairment provisions amounting to RMB 5,701.52 million. (IV) Intangible Asset Impairment Loss In accordance with "Accounting Standards for Business Enterprises No. 8 - Asset Impairment," if intangible assets have impairment indicators, their recoverable amount is estimated and an impairment test is conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying amount, the difference is accrued as impairment provisions and included in impairment loss. The Company engaged Jiangsu Huaxin Asset Appraisal Co., Ltd. to conduct an impairment test on intangible assets. During the reporting period, the Company accrued intangible asset impairment provisions amounting to RMB 217.53 million. III. Impact of Asset Impairment Provisions Accrued This Time on the Company The asset impairment provisions accrued this time will reduce the Company's total profit for 2025 by RMB 7,616.66 million. The accrual of asset impairment provisions this time has been audited and confirmed by Tianjian Certified Public Accountants (Special General Partnership). The matter of accruing asset impairment provisions this time truly reflects the Company's financial status, complies with accounting standards and relevant policy requirements, and is consistent with the Company's actual situation, without harming the interests of the Company and shareholders. IV. Board of Directors' Explanation on the Reasonableness of Accruing Asset Impairment Provisions This Time After review, the Board of Directors believes that the Company's accrual of asset impairment provisions this time complies with the provisions of "Accounting Standards for Business Enterprises" and the Company's relevant accounting policies, is based on sufficient evidence, reflects the principle of accounting prudence, and is consistent with the Company's actual situation. After this accrual of asset impairment provisions, the Company's financial status, asset value, and operating results as of December 31, 2025, can be reflected more fairly, making the Company's accounting information more reasonable. Therefore, the Company's accrual of asset impairment provisions this time is approved. Hereby announced. Board of Directors of Zhongke Yunwang Technology Group Co., Ltd. April 8, 2026