Shenzhen Xinyuan Material Technology Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
In accordance with the "Shenzhen Stock Exchange GEM Listing Rules," "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Guidelines No. 1 - Business Handling," "Enterprise Accounting Standards," and the Company's relevant accounting policies, the Company has conducted a comprehensive review and impairment testing of various assets to accurately reflect its financial status, asset value, and operating results for the year 2025. Based on the principle of prudence, the Company provides the following information regarding the provision for asset impairment for the year 2025:
1. Provision for Asset Impairment
(1) Reasons for the Provision
According to the relevant provisions of the "Enterprise Accounting Standards" and the Company's accounting policies, the Company has conducted a comprehensive review of various assets, including inventory, accounts receivable, contract assets, other receivables, fixed assets, construction in progress, and intangible assets, as of the end of 2025. The Company has fully assessed and analyzed the net realizable value of inventory, the recoverability of receivables, and the realizable value of fixed assets, long-term equity investments, construction in progress, and intangible assets. It is believed that some of these assets show signs of impairment. Following the principle of prudence, the Company has made provisions for the assets that may incur impairment losses.
(2) Scope and Total Amount of the Provision
After a comprehensive review and impairment testing of assets that may show signs of impairment as of the end of 2025, the Company and its subsidiaries have made a total provision for asset impairment amounting to RMB 68,871,177.19. The specific details are as follows:
| Category | Item | Provision Amount for the Period (RMB) |
|---|---|---|
| Credit Impairment | Accounts Receivable | -8,749,615.12 |
| Other Receivables | 744,062.55 | |
| Notes Receivable | 967,393.83 | |
| Asset Impairment | Fixed Assets | 30,447,397.25 |
| Inventory | 45,461,938.68 | |
| Total | 68,871,177.19 |
2. Confirmation Standards and Provision Methods
(1) Impairment of Financial Assets
The Company must recognize impairment losses for financial assets measured at amortized cost, debt instruments measured at fair value with changes recognized in other comprehensive income, and lease receivables, which mainly include notes receivable, accounts receivable, receivables financing, other receivables, debt investments, other debt investments, and long-term receivables.