Securities Code: 002408 Bond Code: 128128 Securities Abbreviation: Qixiang Tengda Bond Abbreviation: Qixiang Zhuan 2 Announcement No.: 2026-007 Zibo Qixiang Tengda Chemical Co., Ltd. Announcement on Accrual of Asset Impairment Provisions for 2025 The Company and all members of its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or major omissions. Zibo Qixiang Tengda Chemical Co., Ltd. (hereinafter referred to as the "Company") held the 28th meeting of the Sixth Board of Directors on April 8, 2026, which reviewed and approved the "Proposal on Accrual of Asset Impairment Provisions for 2025". The details are hereby announced as follows: I. Overview of the Accrual of Asset Impairment Provisions for 2025
- Reasons for the Accrual of Asset Impairment Provisions for 2025 In accordance with the requirements of the "Enterprise Accounting Standards" and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Standardized Operation of Main Board Listed Companies", and other relevant regulations, 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 of the Company and its subsidiaries, and intends to accrue corresponding impairment provisions for relevant assets within the scope of the consolidated financial statements as of December 31, 2025.
- Scope of Assets, Total Amount, and Reporting Period for the Accrual of Asset Impairment Provisions for 2025 After the Company and its subsidiaries conducted a comprehensive investigation and impairment test of assets that may have impairment signs as of the end of 2025, including goodwill, fixed assets, intangible assets, inventory, and receivables, the total asset impairment provisions to be accrued for 2025 are RMB 3,853.63 million, as detailed below: Asset Name | Year-to-Date Accrued Asset Impairment Provisions (RMB Million) | Proportion of 2025 Audited Net Profit Attributable to Shareholders ---|---|---| Inventory Write-down Provisions | 4,085.75 | 7.11% Contract Asset Impairment Provisions | -62.20 | -0.11% Fixed Asset Impairment Provisions | 384.03 | 0.67% Credit Impairment Provisions | -553.95 | -0.96% Total | 3,853.63 | 6.71% Note: The data in the table has rounding differences, which are caused by rounding. The accrual of asset impairment provisions for 2025 will be included in the 2025 annual report. II. Impact of the Accrual of Asset Impairment Provisions for 2025 on the Company The total amount of asset impairment losses to be accrued by the Company in 2025 is RMB 3,853.63 million. After considering the impact of income tax and minority shareholders' equity, the asset impairment losses will reduce the net profit attributable to parent shareholders in 2025 by RMB 3,275.95 million and reduce the equity attributable to parent shareholders in 2025 by RMB 3,275.95 million. The proportion of asset impairment losses accrued to the net profit attributable to parent shareholders in 2025 is 6.71%. III. Specific Description of the Accrual of Asset Impairment Provisions for 2025
- Credit Impairment Loss For debt-collecting entities that are canceled, bankrupt, insolvent, have severe cash flow shortages, experience severe natural disasters, or are in a state of suspension of production, making it impossible to repay debts within a foreseeable period, or other conclusive evidence indicating that recovery is unlikely or the possibility of recovery is very small, the Company conducts individual testing for credit risk and accrues credit impairment losses. For accounts receivable that do not contain a significant financing component, the Company measures the loss provision based on the expected credit loss amount over the entire contract period. In addition to accounts receivable with individual