Stock Code: 002314 Announcement No.: 2026-006 Stock Abbreviation: Nanshan Holdings Shenzhen Nanshan Holdings (Group) Co., Ltd. Announcement on Accrual of Asset Impairment Provisions for 2025 The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and there are no false records, misleading statements, or major omissions. On April 27, 2026, Shenzhen Nanshan Holdings (Group) Co., Ltd. (hereinafter referred to as the "Company") held the 28th meeting of the 7th Board of Directors, which reviewed and approved the "Proposal on Accrual of Asset Impairment Provisions for 2025". The relevant matters are hereby announced as follows: I. Overview of Accrual of Asset Impairment Provisions In accordance with the "Accounting Standards for Business Enterprises" and the Company's accounting policies, the Company and its subsidiaries accrued asset impairment provisions of 170,919.33 million yuan for 2025. The details are as follows:
| Project | Category | 2025 Accrual Amount (million yuan) |
|---|---|---|
| Impairment loss on notes receivable | Credit | 37.62 |
| Impairment loss on accounts receivable | Credit | 720.49 |
| Impairment loss on financial assets carried at amortized cost | Credit | 1.81 |
| Impairment loss on other receivables | Credit | 38,752.06 |
| Impairment loss on non-current assets due within one year | Credit | -14.25 |
| Impairment loss on other current assets | Credit | 13,178.67 |
| Impairment loss on other non-current assets | Credit | 8,641.46 |
| Subtotal | 61,317.87 | |
| Inventory price decline loss | Asset | 99,193.22 |
| Impairment loss on investment properties | Asset | 2,132.57 |
| Impairment loss on fixed assets | Asset | 912.60 |
| Impairment loss on construction in progress | Asset | 3,221.54 |
| Impairment loss on intangible assets | Asset | 3,028.21 |
| Impairment loss on goodwill | Asset | 1,113.31 |
| Subtotal | 109,601.46 | |
| Total | 170,919.33 |
Inventory and other receivables impairment are mainly due to market, supply and demand changes, and development cycles in the real estate business. In 2025, the national real estate market remained in a period of bottom adjustment, and the sales prices and sell-through rates of some of the Company's real estate projects did not meet expectations. Based on current project sales and market performance, the Company conducted inventory impairment tests using the lower of net realizable value and cost for its real estate business. Inventory impairment provisions were accrued for projects showing signs of impairment. For financial support provided to cooperative development projects with inventory impairment, the amount of receivables from cash flows calculated to be greater than the expected recoverable cash flows was used to accrue credit impairment. Impairment losses on accounts receivable, fixed assets, and other assets are mainly due to impairment tests conducted on assets with signs of impairment at the balance sheet date, and corresponding provisions were made for amounts that could not be recovered. II. Confirmation Standards and Accrual Methods for Asset Impairment Provisions This Time (I) Accrual of Credit Impairment Loss In accordance with the requirements of "Accounting Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement", expected credit losses are calculated on a collective basis based on the credit risk characteristics of accounts receivable, other receivables, debt investments, notes receivable, and accounts receivable financing. The Company determines the expected credit loss rate for the entire contract period and estimates the expected credit loss based on historical credit loss experience and changes, combined with the current situation and forecasts of future operating conditions. Expected credit loss refers to the weighted average of financial instrument credit losses, weighted by the risk of default. Credit loss refers to the difference between the present value of all contractual cash flows receivable according to the contract and all expected cash flows to be collected, discounted at the original effective interest rate, i.e., the present value of the total cash shortfall. Methods for determining credit losses on various financial assets: Based on expected credit losses, financial assets measured at amortized cost, debt investments whose changes in fair value are recognized in other comprehensive income, and lease receivables are impaired and loss provisions are recognized. For receivables without significant financing components and contract assets, a simplified measurement method is used, and the loss provision is measured based on the expected credit loss amount for the entire contract period. For lease receivables, receivables with significant financing components, and contract assets, a simplified measurement method is used, and the loss provision is measured based on the expected credit loss amount for the entire contract period. For financial assets other than those using the simplified measurement method, the Company assesses at each balance sheet date whether the credit risk has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, it is in the first stage, and the loss provision is measured based on the expected credit loss amount for the next 12 months. Interest income is calculated based on the carrying amount and the effective interest rate. If the credit risk has increased significantly since initial recognition but no credit impairment has occurred, it is in the second stage, and the loss provision is measured based on the expected credit loss amount for the entire contract period. Interest income is calculated based on the carrying amount and the effective interest rate. If credit impairment occurs after initial recognition, it is in the third stage, and the loss provision is measured based on the expected credit loss amount for the entire contract period. Interest income is calculated based on the amortized cost and the effective interest rate. Expected credit losses are assessed on a single-asset and collective basis. Considering the credit risk characteristics of different customers, expected credit losses for financial assets measured at amortized cost are assessed based on aging buckets as a basis for collective assessment. In addition to the financial assets assessed for expected credit losses on a collective basis as mentioned above, the Company assesses the expected credit losses for individual assets. If there is objective evidence that the credit risk of a single receivable or contract asset is significantly different from that of other receivables and contract assets, the credit impairment loss is accrued based on the difference between the present value of all contractual cash flows receivable for that single contract and the present value of all expected cash flows to be collected. When it is no longer reasonable to expect that all or part of the contractual cash flows of a financial asset will be collected, the carrying amount of the financial asset is directly reduced. After comprehensive investigation and impairment testing, the Company accrued credit impairment losses of 61,317.87 million yuan in 2025. (II) Accrual of Asset Impairment Loss - Inventory At the end of the period, the Company conducted a comprehensive inventory of inventory. At the balance sheet date, inventory is measured at the lower of cost and net realizable value. If the cost is higher than the net realizable value, an inventory price decline provision is accrued and included in current profit or loss. If the factors that caused the previously accrued inventory price decline provision to disappear, making the net realizable value of inventory higher than its carrying amount, the previously reduced amount is reversed within the original provision, and the reversed amount is included in current profit or loss. After comprehensive investigation and impairment testing, the Company accrued inventory price decline provisions of 99,193.22 million yuan in 2025. (III) Accrual of Asset Impairment Loss - Long-term Assets At the end of the period, the Company conducted a comprehensive inventory of long-term assets such as investment properties, fixed assets, construction in progress, and intangible assets. At the balance sheet date, these long-term assets are measured at the lower of recoverable amount and carrying amount. The recoverable amount is determined as the higher of the fair value less costs to sell and the present value of the asset's expected future cash flows. If the recoverable amount of an asset is lower than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and the reduction is recognized as an asset impairment loss and included in current profit or loss. After impairment testing, the recoverable amounts of investment properties, fixed assets, construction in progress, and intangible assets were lower than their carrying amounts. In 2025, a total of 9,294.93 million yuan in impairment provisions for long-term assets was accrued. Among them, 2,132.57 million yuan was accrued for investment properties, 912.60 million yuan for fixed assets, 3,221.54 million yuan for construction in progress, and 3,028.21 million yuan for intangible assets. (IV) Accrual of Asset Impairment Loss - Goodwill At the end of the period, the Company conducted an impairment test on the asset group containing goodwill. At the balance sheet date, the goodwill asset group is measured at the lower of recoverable amount and carrying amount. The recoverable amount is determined as the higher of the fair value less costs to sell and the present value of the asset's expected future cash flows. If the recoverable amount of the goodwill asset group is lower than its carrying amount, the difference is recognized as a goodwill impairment loss. The amount of impairment loss is first used to offset the carrying amount of goodwill allocated to the asset group, and the reduced amount is recognized as an asset impairment loss and included in current profit or loss. After comprehensive investigation and impairment testing, the Company accrued goodwill impairment losses of 1,113.31 million yuan in 2025. III. Explanation on Accrual of Impairment Provisions for Individual Assets Exceeding 30% of Net Profit In accordance with relevant regulations, if the impairment provisions accrued for individual assets account for more than 30% of the absolute value of the company's net profit in the most recent audited fiscal year, and the absolute amount exceeds 10 million yuan, a specific explanation is as follows: