Guangdong Tai'an Tang Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company") guarantees that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
The Company convened the 11th meeting of the 6th Board of Directors and the 7th meeting of the 6th Supervisory Board on April 29, 2024, to review and approve the proposal on the provision for asset impairment losses, credit impairment losses, and write-off of asset impairment losses for 2023. The relevant matters are announced as follows:
I. Provision for Asset Impairment Losses
- Reasons for the Provision of Asset Impairment Losses In accordance with the requirements of the "Enterprise Accounting Standards" and the Company's accounting policies, to accurately reflect the Company's financial condition, asset value, and operating results as of December 31, 2023, and based on the principle of prudence, the Company conducted a comprehensive inspection and impairment testing of various assets in the consolidated financial statements. As a result, the Company recognized asset impairment losses of RMB 173,206.52 million, an increase of 256.02% compared to the previous year. The specific items are as follows:
| Item | Amount (RMB million) |
|---|---|
| Inventory impairment | 119,501.90 |
| Fixed asset impairment | 44,889.73 |
| Intangible asset impairment | 4,353.87 |
| Goodwill impairment provision | 3,046.37 |
| Other non-current asset impairment provision | 1,414.65 |
- Approval Procedures for the Provision of Asset Impairment Losses The provision for asset impairment losses and inventory write-downs has been reviewed and approved by the 11th meeting of the 6th Board of Directors and the 7th meeting of the 6th Supervisory Board, agreeing to the Company's provision for asset impairment losses and inventory write-downs for this period.