Shandong Haike Xinyuan Material Technology Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
According to relevant accounting standards, the Company will make a total provision for impairment of RMB 26.3249 million in 2025. The specific circumstances are announced as follows:
I. Overview of the Provision for Credit and Asset Impairment
(1) Reasons for the Provision
The provision for impairment is made to objectively reflect the Company's financial status and asset conditions. In accordance with the "Enterprise Accounting Standards" and other relevant regulations, the Company conducted impairment tests on accounts receivable, notes receivable, inventory, fixed assets, intangible assets, and other assets within the scope of the consolidated financial statements for 2025. Based on the principle of prudence, the Company recognized impairment losses for assets that may show signs of impairment.
(2) Scope and Total Amount of the Provision
After a comprehensive review and impairment testing of assets that may show signs of impairment in 2025, the total amount of provisions for various assets is RMB 26.3249 million, detailed in the table below:
| Category | Item | Current Period Impairment Amount (10,000 RMB) |
|---|---|---|
| Credit Impairment Provision | Accounts Receivable Bad Debt Provision | 2691.78 |
| Notes Receivable Bad Debt Provision | -50.92 | |
| Other Receivables Bad Debt Provision | -28.35 | |
| Asset Impairment Loss | Inventory Write-down Provision | 19.98 |
| Total | 26,324.9 |
(3) Recognition Standards and Methods for Credit and Asset Impairment Losses
- Financial Instruments
The Company conducts impairment accounting for financial assets measured at amortized cost, financial assets measured at fair value with changes recognized in other comprehensive income (debt instruments), and financial guarantee contracts based on expected credit losses. The Company considers reasonable and evidence-based information regarding past events, current conditions, and forecasts of future economic conditions to calculate the present value of the difference between cash flows expected to be received and actual cash flows, weighted by the risk of default.
For receivables and contract assets arising from transactions governed by "Enterprise Accounting Standards No. 14 - Revenue," the Company measures loss provisions equivalent to the expected credit losses over the entire duration, regardless of whether there is a significant financing component. For lease receivables arising from transactions governed by "Enterprise Accounting Standards No. 21 - Leases," the Company also measures loss provisions equivalent to the expected credit losses over the entire duration.
For other financial instruments, the Company assesses the changes in credit risk of relevant financial instruments on each balance sheet date. The Company compares the risk of default on the balance sheet date with the risk of default at initial recognition to determine whether there has been a significant increase in credit risk since initial recognition. Generally, if overdue by more than 30 days, the Company considers that the credit risk of the financial instrument has significantly increased unless there is conclusive evidence to the contrary.