Overview of Credit Impairment Provision, Asset Impairment Provision, and Asset Write-off
Basic Situation of Credit Impairment Provision and Asset Impairment Provision
The provisions for credit impairment and asset impairment were made in accordance with the "Enterprise Accounting Standards," "Shenzhen Stock Exchange GEM Listing Rules," and relevant regulations of the company's accounting policies. A comprehensive review of the company's and its subsidiaries' financial instruments, contract assets, inventories, fixed assets, construction in progress, intangible assets, goodwill, and other types of assets as of December 31, 2025, was conducted. The expected credit losses of various financial instruments, the net realizable value of inventories, and the recoverable amounts of contract assets, fixed assets, construction in progress, intangible assets, and goodwill were fully assessed and analyzed. It was determined that certain assets showed signs of impairment, necessitating the provision for credit impairment and asset impairment.
Scope and Total Amount of Provisions
After a comprehensive review and impairment testing of assets that may show signs of impairment (including financial instruments, contract assets, inventories, etc.) as of the end of 2025, the total impairment provisions for the year 2025 amount to ¥87,855,118.08, detailed as follows: