Overview of the Asset Impairment Provision
Reasons for the Provision
Lian Dong Technology Co., Ltd. (hereinafter referred to as "the Company") has conducted impairment testing on various assets within the consolidated financial statements as of December 31, 2025, in accordance with the relevant provisions of the "Enterprise Accounting Standards" and the Company's accounting policies, based on the principle of prudence. The Company has recognized impairment provisions for assets showing signs of impairment.
Scope, Total Amount, and Approval Process of the Provision
The total amount of the asset impairment provision for the year 2025 is CNY 6,950,696.86, detailed as follows:
| Asset Impairment Item | Current Period Amount (CNY) |
|---|---|
| Credit impairment loss | -3,323,038.71 |
| - Bad debt loss on notes receivable | 1,190.05 |
| - Bad debt loss on accounts receivable | -3,321,397.09 |
| - Bad debt loss on other receivables | -2,831.67 |
| Asset impairment loss | -3,627,658.15 |
| - Inventory write-down loss | -3,627,658.15 |
| Total | -6,950,696.86 |
The provision for asset impairment is executed in accordance with the "Enterprise Accounting Standards" and the Company's accounting policies.
Specific Explanation of the Provision
The Company and all members of the Board of Directors ensure that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Confirmation Standards and Provision Methods for Credit Impairment
The testing methods and accounting treatment for financial instrument impairment are as follows: 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 probability-weighted difference between cash flows expected to be received and cash flows contractually receivable, confirming expected credit losses.