Company Code: 002329 Company Abbreviation: Huangshi Group Announcement No.: 2026 – 010 Huangshi Group Co., Ltd. Announcement on Provision for Asset Impairment Losses for 2025 The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions. Huangshi Group Co., Ltd. (hereinafter referred to as the "Company") has conducted impairment tests on relevant assets with impairment indicators in accordance with the "Shenzhen Stock Exchange Stock Listing Rules," "Enterprise Accounting Standards," and the Company's relevant accounting system, and hereby announces the specific situation of the provision for asset impairment losses for 2025 as follows: I. Situation of Provision for Asset Impairment Losses This Time (I) Reason for Provision for Asset Impairment Losses This Time To more truthfully and accurately reflect the Company's financial position as of December 31, 2025, and its operating results for 2025, in accordance with the "Enterprise Accounting Standards" and the Company's relevant accounting policies, and based on the principle of prudence, the Company and its subsidiaries conducted impairment tests on various assets with impairment indicators and made corresponding impairment provisions. (II) Scope, Amount, and Reporting Period of Provision for Asset Impairment Losses This Time After the Company conducted impairment tests, the specific details of the provision for various asset impairment losses in 2025 are as follows: Unit: RMB Item Opening Balance Provision Recovery/Reversal Write-off/Scrap Other Closing Balance Bad debt provision: 431,549,281.33 39,460,093.55 1,679,881.88 402,972.36 -41,268.32 468,885,252.32 Of which: Accounts receivable 126,923,245.38 24,304,129.43 1,464,004.59 218,371.94 -1,219.30 149,543,778.98 Other receivables 304,626,035.95 15,155,964.12 215,877.29 184,600.42 -40,049.02 319,341,473.34 Provision for contract assets 236,556.07 97,199.46 333,755.53 Provision for inventory price decline 7,172,018.70 13,217,461.70 3,328,884.48 17,060,595.92 Provision for impairment of long-term equity investments 216,096,605.50 253,603,372.27 469,699,977.77 Provision for impairment of construction in progress 1,918,305.61 1,918,305.61 Total 655,054,461.60 308,296,432.59 1,679,881.88 3,731,856.84 -41,268.32 957,897,887.15 The reporting period for which the provision for asset impairment losses is recognized is from January 1, 2025, to December 31, 2025. II. Explanation of the Provision for Asset Impairment Losses
- Recognition Standards and Measurement Methods for Accounts Receivable and Contract Assets Unit: RMB Item Accounts Receivable Contract Assets Book Balance 517,731,842.48 6,800,464.41 Estimated recoverable amount 368,188,063.50 6,466,708.88 For accounts receivable and contract assets with objective evidence of impairment, and those that are individually assessed for impairment, an impairment test is performed to recognize expected credit losses and make individual impairment provisions. For accounts receivable and contract assets without impairment indicators, or when it is not possible to reasonably estimate the expected credit loss of a financial asset individually, they are grouped based on credit risk characteristics, and expected credit losses are calculated based on the group. Calculation process of estimated recoverable amount Basis for provision for asset impairment losses Provision amount Reason for provision "Enterprise Accounting Standards No. 22 – Financial Instruments: Recognition and Measurement" 149,543,778.98 333,755.53 According to the "Enterprise Accounting Standards" and the Company's bad debt provision policy
- Recognition Standards and Measurement Methods for Other Receivables Unit: RMB Item Other Receivables Book Balance 671,567,205.85 Estimated recoverable amount 352,225,732.51 Calculation process of estimated recoverable amount Based on historical credit loss experience, combined with the current situation and forecasts of future economic conditions, expected credit losses are calculated through default risk exposure and expected credit loss rates within the next 12 months or the entire duration. Basis for provision for asset impairment losses Provision amount Reason for provision "Enterprise Accounting Standards No. 22 – Financial Instruments: Recognition and Measurement" 319,341,473.34 According to the nature of other receivables, combined with historical credit loss experience, the current situation, and forecasts of future economic conditions, individual and grouped assessments of expected credit losses are conducted to recognize bad debt provisions.
- Recognition Standards and Measurement Methods for Inventory Unit: RMB Item Inventory Book Balance 311,331,837.88 Estimated recoverable amount 294,271,241.96 Calculation process of estimated recoverable amount The provision for inventory price decline is generally made for the difference between the cost of each inventory item and its net realizable value. For inventories with large quantities and low unit prices, the provision for inventory price decline is made by inventory category; for inventories that are related to products produced and sold in the same region, have the same or similar end uses or purposes, and are difficult to measure separately from other items, they can be grouped together to make the provision for inventory price decline. Basis for provision for asset impairment losses Provision amount Reason for provision "Enterprise Accounting Standards No. 1 – Inventories" 17,060,595.92 Inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the provision for inventory price decline is made.
- Recognition Standards and Measurement Methods for Construction in Progress Unit: RMB Item Construction in Progress Book Balance 205,435,348.80 Estimated recoverable amount 203,517,043.19 Calculation process of estimated recoverable amount If there are impairment indicators for an asset, its recoverable amount should be estimated. The recoverable amount should be determined by the higher of the fair value less disposal costs and the present value of the asset's expected future cash flows. The recoverable amount of construction in progress should be determined by the higher of the fair value less disposal costs and the present value of expected future cash flows. The difference between the recoverable amount and the carrying amount is recognized as impairment loss. Basis for provision for asset impairment losses Provision amount Reason for provision "Enterprise Accounting Standards No. 8 – Asset Impairment" 1,918,305.61 If the impairment test results show that the recoverable amount of an asset is lower than its carrying amount, the difference is recognized as an impairment provision and included in impairment loss.
- Recognition Standards and Measurement Methods for Long-term Equity Investments Unit: RMB Item Long-term Equity Investments Book Balance 830,717,952.18 Estimated recoverable amount 361,017,974.41 Calculation process of estimated recoverable amount If there are impairment indicators for an asset, its recoverable amount should be estimated. The recoverable amount should be determined by the higher of the fair value less disposal costs and the present value of the asset's expected future cash flows. The recoverable amount of long-term equity investments should be determined by the higher of the fair value less disposal costs and the present value of expected future cash flows. The difference between the recoverable amount and the carrying amount is recognized as impairment loss. Basis for provision for asset impairment losses Provision amount Reason for provision "Enterprise Accounting Standards No. 8 – Asset Impairment" 469,699,977.77 If the impairment test results show that the recoverable amount of an asset is lower than its carrying amount, the difference is recognized as an impairment provision and included in impairment loss. III. Explanation of the Reasonableness of the Provision for Asset Impairment Losses This Time and Its Impact on the Company (I) Explanation of Reasonableness The Board of Directors of the Company believes that: In accordance with the "Enterprise Accounting Standards" and the Company's relevant accounting policies, the provision for asset impairment losses is well-founded and fairly reflects the Company's asset status at the end of the reporting period, making the Company's accounting information more reasonable. (II) Impact on the Company The proposed provision for asset impairment losses this time will reduce the net profit attributable to the shareholders of the listed company for 2025 by RMB 300,494,400.00, and reduce the owner's equity attributable to the shareholders of the listed company for 2025 by RMB 300,494,400.00. Hereby announced. Huangshi Group Co., Ltd. Board of Directors April 27, 2026