Announcement Number: 2026-010 Xuchang Far East Transmission Shaft Co., Ltd. Announcement on Provision for Asset Impairment Losses for 2025
The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.
I. Overview of Provision for Asset Impairment Losses
Xuchang Far East Transmission Shaft Co., Ltd. (hereinafter referred to as the "Company" or "this Company") has conducted a comprehensive inspection of all assets within the consolidated financial statements. In accordance with the "Accounting Standards for Business Enterprises," the "Listing Rules of the Shenzhen Stock Exchange," and the Company's accounting policies, the Company has performed impairment tests on assets showing signs of impairment. Based on the principle of prudence, the Company has made provisions for impairment losses on relevant assets based on the impairment test results. The specific details are as follows:
| Project | Amount of Provision for Asset Impairment Losses (RMB million) |
|---|---|
| I. Provision for Credit Impairment Losses (Losses are listed with "-") | |
| Of which: Provision for bad debts of notes receivable | 1,750.42 |
| Provision for bad debts of accounts receivable | 326.28 |
| Provision for bad debts of other receivables | 1,441.67 |
| II. Provision for Asset Impairment Losses (Losses are listed with "-") | -17.53 |
| Of which: Provision for inventory price decline | 1,107.29 |
| Total | 1,107.29 |
| 2,857.71 |