Securities Code: 002333 Securities Abbreviation: Ropstin Announcement No.: 2026-011 Zhongyi Feng Ropstin Material Technology Co., Ltd. Announcement on Accrual of Credit Impairment Loss and Asset Impairment Loss for 2025 The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions. Zhongyi Feng Ropstin Material Technology Co., Ltd. (hereinafter referred to as the "Company") held the 28th meeting of the Sixth Board of Directors on April 22, 2026, and reviewed and approved the "Proposal on Accrual of Credit Impairment Loss and Asset Impairment Loss for 2025". In accordance with the "Shenzhen Stock Exchange Stock Listing Rules", "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Business Handling (January 2026 Revision)" and other relevant regulations, the specific situation is hereby announced as follows: I. Overview of the Accrual of Credit and Asset Impairment Loss
- Reasons for the Accrual of Credit and Asset Impairment Loss In accordance with the requirements of the "Enterprise Accounting Standards" and the Company's accounting policies, to truthfully and accurately reflect the Company's financial position, asset value, and operating results as of December 31, 2025, based on the principle of prudence, the Company conducted a comprehensive inspection and impairment test of various assets in the consolidated financial statements. For assets with impairment indicators as of December 31, 2025, credit impairment loss and asset impairment loss were accrued.
- Scope, Total Amount, and Reporting Period of Accrued Credit and Asset Impairment Loss After testing, credit impairment loss and asset impairment loss totaling RMB 8,860,511.06 were accrued for assets with impairment indicators in 2025. The specific details are as follows: Category Asset Name Amount of Credit and Asset Impairment Loss Accrued (RMB) Proportion of 2025 Audited Net Profit Attributable to Shareholders of the Listed Company Credit Impairment Loss Notes Receivable -609,771.96 -1.14% Accounts Receivable 7,233,975.16 13.56% Other Receivables 231,682.53 0.43% Asset Impairment Loss Inventory and Contract Performance Costs 1,075,048.63 2.02% Investment Property 1,750,513.58 3.28% Contract Assets -820,936.88 -1.54% The reporting period for which the credit impairment loss and asset impairment loss are to be accrued is from January 1, 2025, to December 31, 2025.
- Approval Procedures for the Accrual of Credit and Asset Impairment Loss The matter of accruing credit impairment loss and asset impairment loss has been reviewed and approved by the 28th meeting of the Sixth Board of Directors of the Company, agreeing to the accrual of credit impairment loss and asset impairment loss. This matter does not require submission to the Company's general meeting of shareholders for approval. II. Specific Description of the Accrual of Credit and Asset Impairment Loss (I) Receivables The Company's receivables include notes receivable, accounts receivable, and other receivables.
- Principles for Accruing Bad Debt Provisions for Receivables For notes receivable, accounts receivable, and other receivables, regardless of whether there is a significant financing component, the Company estimates the expected credit loss for the entire duration of the receivables using a single or combined approach, considering all reasonable and evidential information, including forward-looking information. ① At the end of the period, for notes receivable, accounts receivable, other receivables, and receivables financing with objective evidence of impairment and other receivables applicable to single-item assessment, a separate impairment test is conducted. Impairment loss is recognized and bad debt provisions are accrued based on the difference between the present value of expected future cash flows and their carrying amount. ② When it is not possible to reasonably assess the expected credit loss information for a financial asset at a single item level, the Company divides receivables into portfolios based on credit risk characteristics and calculates the expected credit loss based on the portfolio. Portfolio Name Basis for Determining Portfolio Calculation Method Notes Receivable Portfolio 1: Bank Acceptance Bills The Company does not accrue bad debt provisions for bank acceptance bills. Notes Receivable Portfolio 2: Commercial Acceptance Bills The Company uses aging as the credit risk characteristic for commercial acceptance bills. Based on the actual loss rates of commercial acceptance bills divided by aging in previous years, combined with the current situation, the proportion of bad debt provisions to be accrued for commercial acceptance bills in each aging segment for the current year is determined, and the bad debt provisions to be accrued for the current year are calculated accordingly. Accounts Receivable Credit Risk Characteristic Portfolio: Aging Risk Portfolio Based on historical credit loss experience, combined with the current situation and forecasts of future economic conditions, a table of accounts receivable aging and expected credit loss rates for the entire duration is compiled to calculate expected credit loss. Other Receivables Portfolio 1: Funds on Hand, Intercompany Related Party Accounts Historical credit loss experience indicates no losses have occurred, and the expected credit loss rate is zero. Other Receivables Portfolio 2: Deposits and Guarantees other than those of Zhongyi Feng Technology Based on historical credit loss experience, combined with the current situation and forecasts of future economic conditions, the expected credit loss rate is calculated using the default risk exposure and the expected credit loss rate for the next 12 months or the entire duration, which is 3%. Other Receivables Portfolio 3: Other Receivables (excluding deposits and guarantees of Zhongyi Feng Technology and other other receivables) Aging Risk Portfolio (Deposits and Guarantees of Zhongyi Feng Technology and other other receivables) Based on historical credit loss experience, combined with the current situation and forecasts of future economic conditions, the expected credit loss rate is calculated using the default risk exposure and the expected credit loss rate for the next 12 months or the entire duration. ③ Table of Aging and Expected Credit Loss Rates for the Entire Duration of Credit Risk Characteristic Portfolios Aging Expected Credit Loss Rate (%) for Notes Receivable Expected Credit Loss Rate (%) for Accounts Receivable Expected Credit Loss Rate (%) for Other Receivables Fuzhou Detection Other Companies Fuzhou Detection Other Companies 1 year or less (inclusive) 3 5 3 5 3 1-2 years (inclusive) 10 10 10 10 10 2-3 years (inclusive) 20 30 20 30 20 3-4 years (inclusive) 50 50 50 50 50 4-5 years (inclusive) 100 80 100 80 100 Over 5 years 100 100 100 100 100
- Amount of Bad Debt Provisions Accrued As of the end of 2025, the carrying amount of accounts receivable of the Company and its subsidiaries, the balance of impairment provisions at the end of the period, and the amount of bad debt provisions accrued in the current period are as follows: Unit: RMB Item Carrying Amount at End of Period Impairment Provisions at End of Period Carrying Amount at End of Period Amount Occurred in Current Period Accounts Receivable 757,188,066.10 75,252,759.13 681,935,306.97 7,233,975.16 Other Receivables 10,638,220.95 1,547,354.62 9,090,866.33 231,682.53 Notes Receivable 210,482,468.38 132,000.00 210,350,468.38 -609,771.96 Total 978,308,755.43 76,932,113.75 901,376,641.68 6,855,885.73 (II) Inventory, Contract Performance Costs, Investment Property, and Contract Assets
- Principles for Accruing Inventory Devaluation Provisions At the balance sheet date, inventory is measured at the lower of cost and net realizable value. Inventory devaluation provisions are accrued for the difference between the cost of individual inventory items and their net realizable value. For inventory directly held for sale, net realizable value is determined by deducting estimated selling expenses and related taxes from the estimated selling price in the normal course of business. For inventory requiring processing, net realizable value is determined by deducting the estimated costs to complete, estimated selling expenses, and related taxes from the estimated selling price of the finished product to be produced in the normal course of business.