Securities Code: 300310 Securities Abbreviation: Yitong Century Announcement No.: 2026-018 Announcement on Provision for Asset Impairment in 2025 The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. I. Overview of Provision for Asset Impairment in This Period
- Reason for Provision for Asset Impairment in This Period To fairly reflect the value of various assets of Yitong Century Technology Co., Ltd. (hereinafter referred to as the "Company"), in accordance with the "Accounting Standards for Business Enterprises" and the Company's accounting system, the Company conducted a clean-up of all assets at the end of 2025. Impairment tests were performed on assets with signs of impairment. If the recoverable amount or net realizable value of any asset is lower than its carrying amount, a provision for asset impairment will be made.
- Scope and Total Amount of Assets for Provision for Asset Impairment in This Period Based on the impairment test, assets with signs of impairment during this reporting period include accounts receivable and inventory. With the approval of the Company's Chairman, the cumulative provision for asset impairment for the full year 2025 is RMB 11,535,114.45, as detailed below: Unit: RMB Item Provision for Bad Debts Provision for Contract Asset Impairment Provision for Inventory Price Decline Total Amount of Provision for Asset Impairment (Negative indicates reversal) 6,109,617.05 4,703,222.03 722,275.37 11,535,114.45 Proportion of Net Profit Attributable to Shareholders of Listed Companies in 2025 55.80% 42.95% 6.60% 105.35% II. Method for Provision for Asset Impairment in This Period
- Method for Provision for Bad Debts for Accounts Receivable For bills receivable, accounts receivable, and accounts receivable financing, the Company measures the loss provision based on the expected credit loss over the entire contract term, regardless of whether there is a significant financing component. For financial assets with incurred credit impairment, the Company assesses expected credit loss on a single-item basis; for other financial assets, it assesses expected credit loss on a portfolio basis. a. Accounts Receivable with Significant Individual Amounts and Individually Assessed for Bad Debts: If there is objective evidence that an account receivable has incurred credit impairment, a provision for bad debts will be made for that account receivable individually, and e