Securities Code: 002425 Securities Abbreviation: Kaiser Culture Announcement No.: 2026-011 Kaiser (China) Culture Co., Ltd. Announcement on Provision for Asset Impairment and Write-off of Assets 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 material omissions. Kaiser (China) Culture Co., Ltd. (hereinafter referred to as the "Company") deliberated and approved the "Proposal on Provision for Asset Impairment and Write-off of Assets for 2025" at the twenty-second meeting of the Eighth Board of Directors held on April 23, 2026. The specific details are hereby announced as follows: I. Overview of Provision for Asset Impairment and Write-off of Assets
- Reason for Provision for Asset Impairment In accordance with the requirements of "Enterprise Accounting Standards," "Accounting Supervision Risk Alert No. 8 - Goodwill Impairment," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Norms for Operation of Main Board Listed Companies," and to truly reflect the asset value and financial status of the Company as of December 31, 2025, based on the prudence principle, the Company conducted a comprehensive review and impairment test on various receivables, development expenditures, long-term equity investments, goodwill, and other assets. Impairment provisions were made for assets with signs of impairment.
- Scope, Total Amount, and Reporting Period of Provision for Asset Impairment (1) The asset items for which the Company is providing impairment provisions this time are mainly receivables, development expenditures, long-term equity investments, and goodwill. The total amount of impairment provisions for these assets is RMB 27,400.96 million, with the following details: | Item | Amount of Impairment Provision (RMB million) | |---|---| | Credit Impairment | -1,042.92 | | Development Expenditure Impairment | 11,334.87 | | Long-term Equity Investment Impairment | 3,136.97 | | Goodwill Impairment | 11,700.67 | | Intangible Asset Impairment | 2,271.37 | | Total | 27,400.96 | (2) The reporting period for which the provision for asset impairment is made is from January 1, 2025, to December 31, 2025.
- Asset Write-off In accordance with the "Enterprise Accounting Standards" and other relevant regulations, the Company has timely cleared and written off some unrecoverable receivables. The assets written off this time amounted to RMB 3,410.88 million, with corresponding bad debt provisions of RMB 3,410.88 million. The impact on the net profit of the consolidated financial statements is RMB 0. II. Explanation of the Reasonableness of the Provision for Asset Impairment
- Explanation of Credit Impairment Loss on Receivables Since 2019, the Company has implemented the new financial instrument standards. For receivables other than those with single impairment provisions, the Company conducts impairment tests based on credit risk portfolios. The expected credit loss rate is calculated using the migration model of accounts receivable, adjusted for forward-looking factors, to estimate expected credit losses. The calculated credit impairment loss for this period is RMB -1,042.92 million.
- Explanation of Long-term Asset Impairment Loss At the balance sheet date, the Company checks for signs of impairment in long-term assets such as development expenditures, long-term equity investments, and goodwill. Impairment tests are conducted for assets with signs of impairment. When the recoverable amount of an asset or asset group is lower than its carrying amount, the Company reduces its carrying amount to the recoverable amount. The amount of reduction is included in the current period's profit or loss, and corresponding asset impairment provisions are made. The Company engaged an appraisal institution to evaluate the aforementioned assets. Based on the evaluation results, impairment provisions of RMB 11,334.87 million, RMB 3,136.97 million, RMB 11,700.67 million, and RMB 2,271.37 million were made for development expenditures, long-term equity investments, goodwill, and intangible assets, respectively. III. Impact of the Board of Directors' Resolution on Provision for Asset Impairment and Asset Write-off on the Company The provision for asset impairment and asset write-off to be made this time complies with the "Enterprise Accounting Standards" and the Company's relevant accounting policies. It aligns with the Company's actual situation, reflects the principle of accounting prudence, is well-founded, and truthfully and fairly reflects the Company's consolidated financial position as of December 31, 2025, and its consolidated operating results for 2025. It helps provide more reliable accounting information to investors. The total provision for asset impairment and asset write-off this time is RMB 30,811.84 million, which will reduce the Company's total profit for 2025 by RMB 27,400.96 million. IV. Documents for Inspection Resolution of the twenty-second meeting of the Eighth Board of Directors. Hereby announced. Kaiser (China) Culture Co., Ltd. Board of Directors 2026 April 27