300019SZSE

Announcement on Accrual of Asset Impairment Provisions and Write-off of Assets for 2025

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Chengdu Guibao Technology Co., Ltd. announces its 2025 asset impairment provisions and asset write-offs. The company accrued RMB 2,921.73 million in impairment provisions, reducing net profit by RMB 2,504.91 million. Asset write-offs are largely covered by existing provisions, with minimal impact on current profit.

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Chengdu Guibao Technology Co., Ltd.

Announcement on Accrual of Asset Impairment Provisions and Write-off of Assets 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 major omissions.

Chengdu Guibao Technology Co., Ltd. (hereinafter referred to as the "Company") has, in accordance with the "Enterprise Accounting Standards" and the Company's accounting policy, conducted an inventory of relevant assets within the scope of consolidation to truthfully and fairly reflect the Company's financial position as of December 31, 2025, and its operating performance for 2025. Based on the principle of prudence, the Company has accrued impairment provisions for assets showing signs of impairment. After calculation, the total impairment provisions accrued by the Company in 2025 amounted to RMB 2,921.73 million. The details are as follows:

Unit: RMB million

Asset NameAmount of Impairment Provisions Accrued in 2025
Credit impairment loss - Notes receivable-5.61
Credit impairment loss - Accounts receivable618.75
Credit impairment loss - Other receivables-118.88
Asset impairment loss - Contract asset impairment loss-57.65
Asset impairment loss - Inventory price decline loss321.70
Asset impairment loss - Fixed asset impairment loss1,553.72
Asset impairment loss - Other non-current asset impairment loss609.71
Total2,921.73

I. Confirmation Standards and Accrual Methods for This Impairment Provision Accrual

  1. Notes Receivable

For commercial acceptance notes receivable, regardless of whether they contain a significant financing component, the Company always measures their loss provision at an amount equivalent to the expected credit loss over the entire term, and the increase or reversal of such loss provision is recognized as impairment loss or gain in current profit and loss.

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