Shanghai Yutian Guanjia Technology Co., Ltd. (hereinafter referred to as "the Company") held the 15th meeting of the second board of directors on March 30, 2026, and approved the proposal on the provision for asset impairment for the year 2025. The specific details are as follows:
I. Basic Situation of the Provision for Impairment in 2025
According to the "Enterprise Accounting Standards" and relevant accounting policies, combined with the actual operating conditions of the Company and changes in the industry market, to objectively and fairly reflect the Company's financial status and operating results for the year 2025, based on the principle of prudence, the Company has made provisions for impairment of relevant assets that may occur as of December 31, 2025, within the scope of the consolidated financial statements. In 2025, the total provision for impairment made by the Company amounted to CNY 23,627,866.08, including CNY 5,319,519.22 for credit impairment and CNY 18,308,346.86 for asset impairment, as detailed in the table below:
| Item | Amount for the Current Period (CNY) |
|---|---|
| I. Credit Impairment Provision | 5,319,519.22 |
| - Bad Debt Provision for Accounts Receivable | 3,565,851.02 |
| - Bad Debt Provision for Other Receivables | 373,362.93 |
| - Bad Debt Provision for Long-term Receivables | 1,380,305.27 |
| II. Asset Impairment Provision | 18,308,346.86 |
| - Provision for Inventory Decline and Contract Performance Cost | 16,700,111.42 |
| - Provision for Fixed Asset Impairment | 1,608,235.44 |
| Total | 23,627,866.08 |
II. Basis and Method for the Provision for Asset Impairment
The credit impairment provision and asset impairment provision are based on the expected credit losses for financial assets measured at amortized cost, debt instruments measured at fair value with changes recognized in other comprehensive income, contract assets, and financial guarantee contracts. The Group considers reasonable and evidence-based information regarding past events, current conditions, and forecasts of future economic conditions to calculate the expected credit losses.
At each balance sheet date, the Group measures the expected credit losses for financial instruments at different stages. Financial instruments that have not significantly increased in credit risk since initial recognition are classified as Stage 1, and the Group measures the loss provision based on expected credit losses over the next 12 months. Financial instruments that have significantly increased in credit risk but have not yet experienced credit impairment are classified as Stage 2, and the Group measures the loss provision based on expected credit losses over the entire life of the instrument. Financial instruments that have experienced credit impairment since initial recognition are classified as Stage 3, and the Group measures the loss provision based on expected credit losses over the entire life of the instrument.