Announcement on Provision for Asset Impairment for 2025

Securities Code: 002428 Securities Abbreviation: Yunnan Xinyuan Germanium Industry Announcement No.: 2026-023 Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. Announcement on Provision for Asset Impairment 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 there is no false record, misleading statement or major omission. On April 21, 2026, Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. (hereinafter referred to as the "Company") at the third meeting of the Ninth Board of Directors deliberated and passed the "Proposal on Provision for Asset Impairment for 2025", agreeing that the Company and its subsidiaries will provide for asset impairment totaling 17.2180 million yuan in 2025. The specific content is as follows: I. Overview of Provision for Asset Impairment This Time In accordance with the requirements of the "Enterprise Accounting Standards", "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations, in order to fairly reflect the value of the Company's various assets, based on the principle of prudence, the Company conducted impairment tests on various accounts receivable, inventory, and fixed assets. The possibility of recovery of accounts receivable was fully evaluated and analyzed, and impairment losses on receivables were provided for. For inventory with impairment signs, asset impairment losses were provided for. After analysis and calculation, the Company and its subsidiaries plan to provide for asset impairment totaling 17.2180 million yuan, of which the provision for impairment of accounts receivable is 837.98 million yuan, and the provision for impairment of inventory is 883.82 million yuan. II. Specifics of Provision for Asset Impairment The new provision for various asset impairment losses from January to December 2025 is 17.2180 million yuan, as detailed below:

1. Basis for Provision for Accounts Receivable Impairment In accordance with the "Enterprise Accounting Standards No. 22 - Recognition and Measurement of Financial Instruments" and the Company's accounting policies, considering all reasonable and evidential information, including forward-looking information, the expected credit losses of accounts receivable are estimated on a single-item or portfolio basis.
2. According to the Company's accounting policies and the specific situation of accounts receivable at the end of the year, the provision for accounts receivable impairment in 2025 is 837.98 million yuan. (II) Provision for Inventory Impairment
3. Reasons for Provision for Inventory Impairment In accordance with the provisions of "Enterprise Accounting Standards No. 1 - Inventory", it is determined at the balance sheet date whether the inventory has impairment signs. If there are impairment signs, an impairment test is conducted to estimate its net realizable value. If the net realizable value is lower than its book cost, the difference is provided as a markdown provision and included in asset impairment loss.
4. The inventory involved in the provision for impairment in 2025 mainly includes the Company's work-in-progress, finished goods, and goods in transit. The net realizable value of inventory is estimated based on market prices at the end of the year, considering the purpose of holding the inventory, and the impact of subsequent processing costs, sales expenses, etc., on the net realizable value. The provision for inventory impairment is calculated as the difference between the book cost and the net realizable value. The provision for inventory impairment in 2025 is 883.82 million yuan. III. Impact of Provision for Asset Impairment on the Company The total asset impairment loss provided for by the Company is 17.2180 million yuan, all of which is included in the 2025 profit and loss. After deducting the impact of income tax expenses, the net profit attributable to the parent company in 2025 will decrease by 13.9834 million yuan, and the minority shareholders' profit in 2025 will decrease by 77.20 million yuan. Correspondingly, the equity attributable to the parent company will decrease by 13.9834 million yuan, and the minority shareholders' equity in 2025 will decrease by 77.20 million yuan. IV. Statement on the Reasonableness of the Provision for Asset Impairment by the Board of Directors' Audit Committee The provision for asset impairment by the Company in this instance complies with the "Enterprise Accounting Standards" and the Company's relevant accounting policies. The basis is sufficient, reflecting the principle of accounting prudence, conforming to the Company's actual situation, and objectively and fairly reflecting the Company's operating results for 2025 and the asset value as of December 31, 2025, making the Company's accounting information more reasonable. V. Documents for Reference
5. "Resolution of the Third Meeting of the Ninth Board of Directors of Yunnan Lincang Xinyuan Germanium Industry Co., Ltd.";
6. "Resolution of the Third Meeting of the Audit Committee of the Board of Directors of Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. in 2026". Hereby announced. Board of Directors of Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. April 23, 2026