CREAT Beijing Ke Rui Securities Code: 002350 Securities Abbreviation: Beijing Ke Rui Announcement No.: 2026-024 Beijing Ke Rui Group Co., Ltd. Announcement on Provision for Asset Impairment 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 major omissions. Beijing Ke Rui Group Co., Ltd. (hereinafter referred to as the "Company") held the 20th meeting of the 8th Board of Directors on April 27, 2026, and deliberated and passed the "Proposal on Provision for Asset Impairment for 2025". The specific situation of the Company's provision for asset impairment this time is as follows: I. Reasons for the Provision for Asset Impairment To objectively reflect the Company's financial status, the Company has made provisions for impairment of assets that may show signs of impairment, in accordance with the relevant provisions of the "Accounting Standards for Business Enterprises" and based on the principle of prudence. II. Overview of the Provision for Asset Impairment In accordance with the "Accounting Standards for Business Enterprises" and the Company's accounting policies, and based on the principle of prudence, as of December 31, 2025, the Company had accumulated provisions for asset impairment totaling RMB 337,480,478.97. Of this, RMB 36,992,671.89 was provided in 2025, a decrease of RMB 9,908,167.18 (RMB 1,609,305.82 was recovered or reversed, and RMB 8,298,861.36 was written off or cancelled), and other changes amounted to RMB -49,447.80 (mainly due to the reduction in bad debt provisions caused by the disposal of subsidiaries). The specific situation is as follows:
| Item (Unit: RMB) | Opening Balance | Provision for the Year | Recovered or Reversed | Written Off or Cancelled | Other | Closing Balance |
|---|---|---|---|---|---|---|
| Provision for bad debts of accounts receivable | 103,633,928.68 | -168,676.48 | 1,609,305.82 | 101,855,946.38 | ||
| Provision for bad debts of other receivables | 4,581,850.63 | 1,338,442.42 | 49,447.80 | 5,870,845.25 | ||
| Provision for contract asset impairment | 14,888,085.29 | 1,596,346.36 | 16,484,431.65 | |||
| Provision for inventory price decline | 44,701,810.57 | 11,850,669.16 | 3,872,007.78 | 52,680,471.95 | ||
| Provision for impairment of assets held for sale | 4,426,853.58 | 4,426,853.58 | 0.00 | |||
| Provision for fixed asset impairment | 510,218.47 | 3,272,771.54 | 3,782,990.01 | |||
| Provision for intangible asset impairment | 52,301,635.41 | 11,165,277.94 | 63,466,913.35 | |||
| Provision for goodwill impairment | 85,401,039.43 | 7,937,840.95 | 93,338,880.38 | |||
| Total | 310,445,422.06 | 36,992,671.89 | 1,609,305.82 | 8,298,861.36 | 49,447.80 | 337,480,478.97 |
III. Specific Explanation of the Provision for Asset Impairment
- Provision for bad debts of accounts receivable: The decrease from the beginning of the period to the end of the period is mainly due to the recovery of accounts receivable for which bad debt provisions had been made during the period.
- Provision for bad debts of other receivables: The increase from the beginning of the period to the end of the period is mainly due to the provision for bad debts calculated using the general model of expected credit loss; other changes are mainly due to the reduction in bad debt provisions caused by the disposal of subsidiaries.
- Provision for contract asset impairment: The increase from the beginning of the period to the end of the period is mainly due to the provision for bad debts made by the Company for customer quality assurance deposits and other contract assets.
- Provision for inventory price decline: The increase from the beginning of the period to the end of the period is mainly due to the provision for impairment of inventory such as raw materials in stock, calculated at the lower of cost and net realizable value as of the balance sheet date; the decrease from the beginning of the period to the end of the period is mainly due to the sale of inventory such as finished goods for which the Company had made impairment provisions.
- Provision for impairment of assets held for sale: The decrease from the beginning of the period to the end of the period is mainly due to the completion of the sale of related assets held for sale. In accordance with the "Accounting Standards for Business Enterprises", the impairment provisions previously made for the corresponding assets are written off, and this write-off does not affect the current period's profit.
- Provision for fixed asset impairment: The increase from the beginning of the period to the end of the period is mainly due to the provision for impairment of fixed assets of subsidiaries that showed signs of impairment, calculated at the lower of their carrying amount and recoverable amount as of the balance sheet date.
- Provision for intangible asset impairment: The increase from the beginning of the period to the end of the period is mainly due to the provision for impairment of intangible assets of subsidiaries that showed signs of impairment, calculated at the lower of their carrying amount and recoverable amount as of the balance sheet date.
- Provision for goodwill impairment: The increase from the beginning of the period to the end of the period is mainly due to the provision for impairment of goodwill formed by the Company's acquisition of Xiamen Ke Rui Energy Service Co., Ltd. during the reporting period. IV. Impact of the Provision for Asset Impairment on the Company's Financial Position The Company's newly added provision for asset impairment in this period totaled RMB 36,992,671.89. The total amount of asset impairment provisions recovered or reversed was RMB 1,609,305.82, and the total amount of asset impairment provisions written off or cancelled was RMB 8,298,861.36 (of which, the amount of RMB 4,426,853.58 for assets held for sale written off during the year does not affect the current period's profit). The reduction in bad debt provisions of RMB 49,447.80 due to the disposal of subsidiaries (does not affect the current period's profit) resulted in a total reduction in the Company's profit before tax for 2025 of RMB 31,511,358.29. V. Review Opinion of the Audit Committee The Audit Committee believes that the Company's provision for asset impairment this time complies with the provisions of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Business Handling", and the Company's relevant accounting policies. It reflects the principle of prudence and is in line with the Company's actual situation. After this provision for asset impairment, the Company's financial position, asset value, and operating results can be reflected more objectively and fairly. The Audit Committee agrees with the Company's "Proposal on Provision for Asset Impairment for 2025" and submits it to the Board of Directors for deliberation. VI. Documents for Reference
- Resolution of the 20th meeting of the 8th Board of Directors;
- Resolution of the 2nd meeting of the Audit Committee in 2026. Hereby announced. Board of Directors of Beijing Ke Rui Group Co., Ltd. April 27, 2026