002374SZSE

Announcement on Provision for Asset Impairment in 2025

Zhongrui Co., Ltd.·

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Shandong Zhongrui Industrial Development Co., Ltd. announces its 2025 provision for asset impairment, totaling RMB 137.35 million, which will reduce the company's 2025 profit by the same amount. The provision covers receivables, inventory, and contract assets, with specific details provided for each category. The Audit Committee and the Board of Directors have reviewed and approved the provision, deeming it compliant with accounting standards and beneficial for reflecting the company's financial status.

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Securities Code: 002374 Securities Abbreviation: Zhongrui Shares Announcement No.: 2026-024

Shandong Zhongrui Industrial Development Co., Ltd.

Announcement on Provision for Asset Impairment in 2025

The Company and all members of the Board of Directors guarantee the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.

I. Overview of Provision for Asset Impairment

  1. Reason for the Provision for Asset Impairment

In accordance with the "Accounting Standards for Business Enterprises" and the relevant provisions of the accounting policies of Shandong Zhongrui Industrial Development Co., Ltd. (hereinafter referred to as the "Company"), to accurately and objectively 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 review and impairment test of all assets and made provisions for potential impairment.

  1. Scope of Assets, Total Amount, and Reporting Period for the Provision for Asset Impairment

After a comprehensive review and impairment test of all assets that may have shown signs of impairment at the end of 2025 by the Company and its subsidiaries, the total provision for asset impairment in 2025 is RMB 137.35 million, accounting for -53.78% of the net profit attributable to shareholders of the listed company audited in 2025. The details are as follows:

ProjectImpairment Loss on Assets and Credit in 2025 (RMB million)Proportion of Audited Net Profit Attributable to Shareholders of Listed Company in 2025 (%)
Accounts Receivable17,425.42-68.23
Other Receivables-234.140.92
Long-term Receivables-7,453.4429.18
Notes Receivable-500.20
Inventory591.76-2.32
Contract Assets3,455.41-13.53
Total13,735.00-53.78

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