Announcement on Provision for Asset Impairment in 2025

Securities Code: 002392 Securities Abbreviation: Beijing Leader Announcement No.: 2026-016 Beijing Leader High-Temperature Materials Co., Ltd. Announcement on Provision for Asset Impairment in 2025 The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false representations, misleading statements, or material omissions. Beijing Leader High-Temperature Materials Co., Ltd. (hereinafter referred to as the "Company") held the 16th meeting of the 6th Board of Directors on April 9, 2026, which deliberated and approved the "Proposal on Provision for Asset Impairment in 2025." The relevant details are hereby announced as follows: I. Overview of the Provision for Asset Impairment

1. Reason for the Provision for Asset Impairment In accordance with the requirements of the "Accounting Standards for Business Enterprises," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Normative Operation of Main Board Listed Companies," and other relevant regulations, to truthfully, accurately, and objectively reflect the Company's financial position, asset value, and operating results, based on the principle of prudence, the Company has conducted a comprehensive inspection and impairment test of its various assets and made corresponding impairment provisions for relevant assets within the scope of the consolidated financial statements as of December 31, 2025.
2. Scope of Assets, Total Amount, and Reporting Period for Provision for Asset Impairment After the Company and its subsidiaries conducted a comprehensive inventory and impairment test of assets with potential impairment signs as of the end of 2025, including notes receivable, accounts receivable, other receivables, inventory, contract assets, fixed assets, and construction in progress, the Company has made provisions for credit impairment losses and asset impairment losses totaling RMB 8,332.95 million, accounting for 20.78% of the net profit attributable to shareholders of the listed company audited for 2025. The specific details of the provision for asset impairment are as follows: | Project | Amount of Provision in 2025 (RMB million) | Proportion of Audited Net Profit Attributable to Shareholders of Listed Company in 2025 | |---|---|---| | I. Credit Impairment Losses | | | | 1. Credit impairment loss on notes receivable | 24.85 | 0.06% | | 2. Credit impairment loss on accounts receivable | -5,207.06 | -12.99% | | 3. Credit impairment loss on other receivables | -353.69 | -0.88% | | Subtotal of credit impairment losses: | -5,535.90 | -13.81% | | II. Asset Impairment Losses | | | | 1. Inventory price decline loss | -2,423.52 | -6.04% | | 2. Contract asset impairment loss | 24.85 | 0.06% | | 3. Fixed asset impairment loss | -368.47 | -0.92% | | 4. Construction in progress impairment loss | -29.91 | -0.07% | | Subtotal of asset impairment losses: | -2,797.05 | -6.97% | | Total: | -8,332.95 | -20.78% | The reporting period for which credit impairment losses and asset impairment losses are provided is from January 1, 2025, to December 31, 2025 (losses are indicated by "-").
3. Approval Procedures for the Provision for Asset Impairment The provision for asset impairment has been reviewed and approved by the Company's Audit Committee and the 16th meeting of the 6th Board of Directors. II. Basis, Methods, and Reasons for the Provision for Asset Impairment (I) Basis, Methods, and Reasons for Determining Credit Impairment Losses
4. Scope of Expected Credit Loss The Company applies the expected credit loss model to perform impairment accounting for financial assets measured at amortized cost (including accounts receivable, notes receivable, and accounts receivable) and other receivables, and to recognize bad debt provisions.
5. Method for Determining Expected Credit Loss The general method for determining expected credit loss is as follows: The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased significantly since initial recognition. The process of credit impairment for financial instruments is divided into three stages, and different accounting treatments are applied for impairment of financial instruments in different stages: (1) Stage 1: If the credit risk of a financial instrument has not increased significantly since initial recognition, the Company measures the loss provision based on the expected credit loss for the next 12 months, and calculates interest income based on the carrying amount (i.e., before deducting the impairment provision) and the effective interest rate. (2) Stage 2: If the credit risk of a financial instrument has increased significantly since initial recognition but has not yet experienced credit impairment, the Company measures the loss provision based on the expected credit loss for the entire term of the financial instrument, and calculates interest income based on the carrying amount and the effective interest rate. (3) Stage 3: If credit impairment has occurred since initial recognition, the Company measures the loss provision based on the expected credit loss for the entire term of the financial instrument, and calculates interest income based on its amortized cost (carrying amount less accumulated impairment provision) and the effective interest rate. The simplified method for expected credit loss is to always measure the loss provision at an amount equivalent to the expected credit loss for the entire term.
6. Accounting Treatment Method for Expected Credit Loss To reflect changes in the credit risk of financial instruments since initial recognition, the Company re-measures expected credit losses at each balance sheet date. The increase or reversal of the loss provision formed thereby shall be included in current profit or loss as impairment loss or gain, and shall offset the carrying amount of the financial asset on the balance sheet or be included in estimated liabilities (loan commitments or financial guarantees) according to the type of financial instrument.
7. Method for Calculating Bad Debt Provisions for Receivables (1) Receivables not containing a significant financing component. For receivables arising from transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue" and not containing a significant financing component, the Company adopts a simplified method, which is to always measure the loss provision at the expected credit loss for the entire term. ① Combination categories and determination basis for calculating bad debt provisions based on credit risk characteristics. For receivables other than those individually identified, the Company classifies notes receivable and accounts receivable into several combinations based on credit risk characteristics. The expected credit loss is calculated based on these combinations, and the basis for determining the combinations is as follows: Notes Receivable by Credit Risk Characteristics Combination: | Combination Category | Determination Basis | |---|---| | Combination 1: Bank Acceptance Bills | Bill Type | | Combination 2: Commercial Acceptance Bills | Bill Type | Accounts Receivable by Credit Risk Characteristics Combination: | Combination Category | Determination Basis | |---|---| | Combination 1: Aging | Customer Nature | | Combination 2: Related Party Customers | Customer Nature | For notes receivable classified into combinations, the expected credit loss is calculated by referring to historical credit loss experience, combining the current situation and forecasts of future economic conditions, and using the default risk exposure and the expected credit loss rate for the entire term. For accounts receivable classified into combinations, the expected credit loss is calculated by preparing a table of accounts receivable and expected credit loss rates for the entire term, referring to historical credit loss experience, combining the current situation and forecasts of future economic conditions. ② Calculation method for aging of combinations based on aging for determining credit risk characteristics. The aging calculation method for combinations based on aging for determining credit risk characteristics uses the invoice date of customer receivables as the starting point for calculating aging. For customers with multiple transactions, the aging calculation is based on the date each transaction occurred as the aging start date, and the final recovery time is calculated separately for aging. ③ Judgment criteria for individual provision for bad debt. The Company individually identifies and provides for bad debts for receivables. For receivables where customers are involved in litigation, have declared bankruptcy, or are experiencing significant financial difficulties, individual identification is made, and full provision for bad debts is made. (2) Receivables containing a significant financing component and lease receivables. For receivables containing a significant financing component and lease receivables, the general method, i.e., the "three-stage" model, is used to measure the loss provision. The credit risk characteristics combination, the aging calculation method for combinations based on aging, and the judgment criteria for individual provision are consistent with the determination criteria for those not containing a financing component.
8. Method for Measuring Loss Provisions for Other Financial Assets For financial assets other than those mentioned above, such as debt investments, other debt investments, other receivables, and long-term receivables other than lease receivables, the general method, i.e., the "three-stage" model, is used to measure the loss provision. (1) Combination categories and determination basis for calculating bad debt provisions based on credit risk characteristics for other receivables. The Company classifies other receivables into several combinations based on credit risk characteristics. The expected credit loss is calculated based on these combinations, and the basis for determining the combinations is as follows: | Combination Category | Determination Basis | |---|---| | Combination 1: Receivables for deposits, guarantees, and advances | Nature of Funds | | Combination 2: Related party receivables | Nature of Funds | | Combination 3: Receivables for advances paid on behalf of others | Nature of Funds | | Combination 4: Other receivables | Nature of Funds | (2) Calculation method for aging of combinations based on aging for determining credit risk characteristics. Refer to the explanation for receivables not containing a significant financing component. (3) Judgment criteria for individual provision for bad debt. Refer to the explanation for receivables not containing a significant financing component. (II) Basis, Methods, and Reasons for Determining Asset Impairment Losses
9. Confirmation Standards and Provision Method for Inventory Price Decline Loss At the balance sheet date, inventory is measured at the lower of cost and net realizable value. If the net realizable value is lower than the cost, an inventory price decline provision is made. The inventory price decline provision is made for each individual inventory item. However, for inventories with large quantities and low unit prices, the provision is made by inventory category. If the factors that caused the previous reduction in inventory value have disappeared, the inventory price decline provision shall be reversed within the amount previously provided. In determining the net realizable value of inventory, it shall be based on conclusive evidence, taking into account the purpose of holding the inventory and the impact of subsequent events after the balance sheet date.
10. Method for Provision for Contract Asset Impairment The method for provision for contract asset impairment refers to the method for determining expected credit loss. Contract assets are divided into the following combinations based on credit risk characteristics: | Combination Category | Determination Basis | |---|---| | Combination 1: Aging Combination | Determined based on customer nature | | Combination 2: Related Party Customer Combination | Determined based on customer nature |
11. Method for Provision for Fixed Asset and Construction in Progress Impairment At the balance sheet date, impairment tests are conducted for fixed assets and construction in progress with impairment signs. If the recoverable amount of fixed assets and construction in progress is lower than their carrying amount, the difference is recognized as an impairment provision and included in impairment loss. The recoverable amount is the higher of the fair value of the asset less disposal costs and the present value of the asset's expected future cash flows. The impairment provision is calculated and recognized on a per-asset basis. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is used. An asset group is the smallest group of assets that can generate independent cash inflows. III. Impact of the Provision for Asset Impairment on the Company The Company's cumulative provision for credit impairment losses and asset impairment losses in 2025 totals RMB 8,332.95 million. After considering the impact of income tax, this will reduce the net profit attributable to shareholders of the listed company in 2025 by RMB 6,820.21 million, and correspondingly reduce the owners' equity attributable to shareholders of the listed company in 2025 by RMB 6,820.21 million. The provision for asset impairment made by the Company this time has been audited by an accounting firm. IV. Statement from the Board of Directors on the Reasonableness of the Provision for Asset Impairment in 2025 The Company's provision for asset impairment in this period complies with and conforms to the requirements of the "Accounting Standards for Business Enterprises" and the Company's relevant accounting policies. The basis is sufficient, reflecting the principle of accounting prudence, and is consistent with the Company's actual situation. After this provision for asset impairment, the Company's financial position and asset value as of December 31, 2025, will be reflected more objectively and fairly, making the Company's accounting information more reasonable. Hereby announced. Beijing Leader High-Temperature Materials Co., Ltd. Board of Directors April 10, 2026