Hunan YN New Energy Battery Materials 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 any false records, misleading statements, or significant omissions.
I. Overview of the Impairment Provision
To accurately reflect the financial condition, asset value, and operational status of Hunan YN New Energy Battery Materials Co., Ltd., and in accordance with the principle of prudence, the Company has conducted a comprehensive review of its assets, including notes receivable, accounts receivable, other receivables, inventory, long-term equity investments, fixed assets, construction in progress, intangible assets, and goodwill, as of December 31, 2025. The Company has fully assessed and analyzed various assets and recognized impairment provisions for those that may incur impairment losses. According to the relevant laws and regulations, including the Shenzhen Stock Exchange GEM Listing Rules and the Company’s Articles of Association, this impairment provision does not require submission for review by the Board of Directors or the shareholders' meeting.
II. Scope and Total Amount of the Impairment Provision
The total amount of asset and credit impairment provisions recognized by the Company for the year 2025 is CNY 231.47 million, detailed as follows:
| Asset Impairment Item | Current Period Amount (CNY 10,000) |
|---|---|
| Bad Debt Provision for Receivables | 127,115.80 |
| - Bad Debt Provision for Accounts Receivable | 71,720.20 |
| - Bad Debt Provision for Notes Receivable | 24,955.70 |
| - Bad Debt Provision for Other Receivables | 30,440.00 |
| Inventory Write-down Provision | 17,532.30 |
| Fixed Asset Impairment Provision | 80,561.10 |
| Intangible Asset Impairment Provision | 6,264.30 |
| Total | 231,473.50 |
Note: Any discrepancies in totals due to rounding.