Hongchang Technology: Announcement on Provision for Asset Impairment in the Half Year of 2026
Securities code: 301008 Securities abbreviation: Hongchang Technology Announcement number: 2026-052
Zhejiang Hongchang Electrical Technology Co., Ltd.
Announcement on Provision for Asset Impairment in the Half Year of 2026
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete and does not contain any false records, misleading statements or major omissions.
In accordance with the requirements of the "Accounting Standards for Business Enterprises", the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the company's accounting policies and other relevant regulations, in order to reflect the company's asset status and financial status as of June 30, 2026 more objectively, truly and accurately, Zhejiang Hongchang Electrical Technology Co., Ltd. (hereinafter referred to as the "Company") based on the principle of prudence, in accordance with the "Accounting Standards for Business Enterprises" and the company's relevant accounting treatment regulations, the company and each company within the scope of the consolidated statements conducted an impairment test on its assets as of June 30, 2026. It was judged that some assets had signs of impairment, and impairment provisions needed to be made.
According to relevant laws and regulations such as the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Articles of Association" and other relevant provisions, the provision of impairment losses does not need to be submitted to the company's board of directors or shareholders' meeting for review. The relevant matters regarding the company's provision of asset impairment provisions for the first half of 2026 are hereby announced as follows:
1. Overview of the current provision for asset impairment
(1) Reasons for the provision of asset impairment provisions this time
In order to truly reflect the company's financial status and operating results, the company conducted an impairment test on the assets of the company and its subsidiaries within the scope of the consolidated financial statements for the first half of 2026 in accordance with the provisions of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment" and based on the principle of prudence. It judged that there were signs of impairment and determined the asset items that required provision for impairment.
(2) The scope and amount of asset impairment provisions this time
After calculation, the total amount of provision for impairment of various assets this time is 5,130,623.99 yuan, the details are as follows: Unit: yuan
Item Amount of provision for the current period (losses are listed with "-")
- Credit impairment losses -3,537,307.30 Impairment losses on accounts receivable -429,978.05 Bad debt losses -3,107,329.25
Item Amount of provision for the current period (losses are listed with "-")
- Asset impairment losses -1,593,316.69 Inventory depreciation losses and contract performance cost impairment losses -1,593,316.69 Total -5,130,623.99
2. Specific explanation of provision for asset impairment
(1) Credit impairment losses
Based on expected credit losses, the company measures financial assets measured at amortized cost and debt obligations measured at fair value with changes included in other comprehensive income. Financial guarantee contracts that include investments, contract assets, lease receivables, loan commitments other than financial liabilities classified as fair value through profit or loss, financial liabilities that are not measured at fair value through profit or loss, or financial guarantee contracts that are not financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets are subject to impairment treatment and loss provisions are recognized.
When there is insufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level, the Company refers to historical credit loss experience, combined with current conditions and judgments of future economic conditions, divides receivables into several combinations based on credit risk characteristics, and calculates expected credit losses on a combination basis. Credit impairment losses accrued in this period were -3,537,307.30 yuan.
(2) Asset impairment losses
On the balance sheet date, the company's inventories are measured at the lower of cost and net realizable value, and provision for inventory depreciation is made based on the difference between the inventory cost and the net realizable value. For inventories that are directly used for sale, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes in the normal production and operation process; for inventories that need to be processed, the estimated selling price of the finished products produced during the normal production and operation process is determined by the estimated cost to be incurred upon completion, the estimated sales expenses and related taxes. The amount determines its net realizable value; on the balance sheet date, if part of the same inventory has a contract price and other parts do not have a contract price, its net realizable value is determined separately and compared with its corresponding cost to determine the amount of provision or reversal of inventory depreciation provisions. The inventory depreciation loss accrued in the current period is -1,593,316.69 yuan.
3. The impact of the provision for asset impairment in this period on the company
A total of RMB 5,130,623.99 was made for asset impairment in this period, reducing the total profit for the first half of 2026 by RMB 5,130,623.99. The provision for asset impairment in this period truly reflects the company's financial status and operating results, complies with accounting standards and relevant policy requirements, is consistent with the company's actual situation, and does not harm the interests of the company and shareholders. The above data have not been audited by an accounting firm.
Announcement is hereby made.
Board of Directors of Zhejiang Hongchang Electrical Technology Co., Ltd.
August 29, 2026