Quzhou Dongfeng’s Announcement on Provision for Asset Impairment
Securities code: 601515 Securities abbreviation: Quzhou Dongfeng Announcement number: Lin 2026-021
Quzhou Dongfeng New Materials Group Co., Ltd.
Announcement on Provision for Asset Impairment
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
1. Overview and impact of this impairment provision;
In order to truly, accurately and fairly reflect the company's financial status, asset values and operating results, standardize the recognition, measurement and disclosure of relevant information of the company's asset impairment, and improve the accuracy and reliability of financial reports, in accordance with the relevant provisions of the "Accounting Standards for Business Enterprises" and the company's accounting policies, and in line with the principle of prudence, Quzhou Dongfeng New Materials Group Co., Ltd. (hereinafter referred to as the "Company") has conducted a review of the financial statements as of December 31, 2025. A comprehensive inventory, analysis and evaluation of all assets within the scope of daily consolidation were carried out, and signs of impairment were identified and tested for various assets such as receivables, inventories, fixed assets, intangible assets, long-term equity investments, goodwill, etc., and asset impairment provisions were accordingly made for assets with signs of impairment based on the test results. The current provision for asset impairment is as follows:
(1) Overview of the current provision for asset impairment
In accordance with relevant regulations such as "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 8 - Asset Impairment" and other relevant regulations as well as the company's actual business conditions, the company conducted an impairment test on the relevant assets within the consolidated scope as of December 31, 2025. According to the test results, some of the company's assets were impaired, and a total of RMB 308.6105 million (RMB, the same below) was accrued for credit impairment losses and asset impairment losses. The details are as follows:
Unit of amount: RMB 10,000 Item Amount of provision for asset impairment losses Bad debt losses on notes receivable -20.50 Credit impairment losses Bad debt losses on accounts receivable 2,744.49
Loss on other bad debts receivable 554.35
Subtotal 3,278.33 Inventory depreciation losses 2,846.79 Fixed asset impairment losses 5,310.11 Intangible asset impairment losses 3,493.15 Asset impairment losses
Impairment losses on long-term equity investments 151.12 Impairment losses on goodwill 15,781.54 Subtotal 27,582.72 Total 30,861.05
The reporting period for the asset impairment provision accrued this time is from January 1, 2025 to December 31, 2025. The amount of the asset impairment loss accrued by the company this time has been audited and confirmed by the annual report audit agency Zhonghui Accounting Firm (Special General Partnership).
(2) Specific explanation of the provision for asset impairment this time
- Credit impairment losses
According to the relevant provisions of the Accounting Standards for Business Enterprises, the company individually evaluates the credit risk of receivables with significant credit risk (including but not limited to financial assets such as notes receivable, accounts receivable, and other receivables), such as: receivables that are in dispute with the other party or involved in litigation, arbitration, etc.; receivables that have obvious signs that the debtor is likely to be unable to fulfill its repayment obligations, etc. When the information on the expected credit losses of a single financial asset cannot be evaluated at a reasonable cost, the company divides the receivables into several combinations based on the credit risk characteristics and calculates the expected credit losses on the basis of the combinations.
Based on the above method, during the reporting period, the company plans to reverse bad debt provisions of RMB 205,000 for notes receivable, to accrue bad debt provisions of RMB 27,444,900 for accounts receivable, and to accrue bad debt provisions of RMB 5,543,500 for other receivables.
- Asset impairment losses
(1) Loss from inventory depreciation
On the balance sheet date, the company measures inventory, shipped goods, self-made semi-finished products, work-in-progress, and raw materials at the lower of cost and net realizable value, and accrues inventory depreciation reserves based on the difference between cost and 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 net realizable value is determined by the estimated selling price of the finished products less the estimated costs to be incurred upon completion, the estimated sales expenses and related taxes during the normal production and operation process. For some inventories such as raw materials and self-made semi-finished products, if they still cannot accurately correspond to the finished product category after subsequent production and processing, the estimated selling price can no longer reasonably reflect the net realizable value of such inventories. Therefore, the company conducts an overall assessment of the net realizable value based on the inventory age of such inventories, taking into account the actual age and quality of such inventories, and reasonably reflects the impairment risk caused by the sluggishness of such inventories. Specifically, if the inventory age is less than 1 year, age depreciation will not be considered; if the inventory age is 1-2 If the inventory is more than 2 years old, inventory depreciation reserves shall be accrued at a ratio of 50% of the book value; if the inventory is more than 2 years old, inventory depreciation reserves shall be accrued at a ratio of 100% of the book value. During the reporting period, the company made provision for inventory depreciation of RMB 28.4679 million.
(2) Impairment losses on fixed assets
According to the relevant provisions of the Accounting Standards for Business Enterprises and the company's accounting policies, if there are signs of impairment of an asset, its recoverable value should be estimated, and an impairment provision shall be made based on the amount by which the recoverable value is lower than the book value. The company will make a total provision for fixed asset impairment losses of RMB 53.1011 million in 2025, of which:
① In the past two years, the new energy industry has experienced serious involution, competition has intensified, and the technology of dry film production equipment has been updated rapidly. In particular, the current mainstream production of the stretching production line is online stretching, with wide door width and fast stretching speed. The production equipment of Hunan Bosheng New Energy Technology Co., Ltd. (hereinafter referred to as "Hunan Bosheng"), a subsidiary of the company, mainly includes lithium battery separator unidirectional stretching production lines, dual-station winding high-speed wide-width separator cast machines, lithium battery separator four-layer laminating machines, slitting machines, lithium battery separator small layering machines, stretching machines, etc., which are outdated. With the upgrading of product production lines, these equipment are idle and are planned to be dismantled and liquidated. For machinery and equipment that have not been disposed of and realized after the period, according to Jiangsu Zhongqi Huazhongtian Asset Appraisal Co., Ltd.'s "Quzhou Dongfeng New Materials Group Co., Ltd. intends to conduct impairment testing involving the recoverable amount of machinery and equipment reported by Hunan Bosheng New Energy Technology Co., Ltd. Asset Assessment Report" (Su Zhongzi Pingbao Zi (2026) No. 12046), on December 31, 2025, the base date of assessment, the net book amount of this machinery and equipment was 3,612.14 Ten thousand yuan, its recoverable amount is 14.6121 million yuan, and fixed asset impairment losses of 21.5092 million yuan have been made. In addition, the net book amount at the end of the period for the machinery and equipment that has been disposed of after the period was 147,900 yuan, the amount recovered from disposal after the period was 9,400 yuan, and an impairment loss of fixed assets of 138,500 yuan was accrued. Based on this calculation, Hunan Bosheng's fixed asset impairment losses for the current period totaled RMB 21.6478 million.
② The company's controlled subsidiary Yancheng Bosheng New Energy Co., Ltd. (hereinafter referred to as "Yancheng Bosheng") has carried out process transformation to improve production efficiency. Some machinery and equipment such as stretching lines, lithium battery separator small layering machines, laminating machines, slitting machines, lithium battery separator unidirectional stretching production lines, etc. cannot adapt to the needs of the new process and will no longer be used for production in the future. They are planned to be dismantled and disposed of for cash. According to Jiangsu Zhongqi Huazhongtian Asset Appraisal Co., Ltd.'s "Asset Assessment Report on the Recoverable Amount of Machinery and Equipment Declared by Yancheng Bosheng New Energy Co., Ltd. Involved in the Impairment Test Planned to be Conducted by Quzhou Dongfeng New Materials Group Co., Ltd." (Su Zhongzi Pingbao Zi (2026) No. 12044), on December 31, 2025, the base date of the evaluation, the net book amount of the machinery and equipment was 4,797.95 Ten thousand yuan, its recoverable amount is 19.1877 million yuan, and Yancheng Bosheng accrued fixed asset impairment losses of 28.7918 million yuan in the current period.
③ The company is in a period of strategic adjustment and transformation, and is comprehensively liquidating the original cigarette label printing and packaging business. The machinery and equipment related to the cigarette label printing business of its wholly-owned subsidiary Shantou Dongfeng Bosheng Technology Co., Ltd. (hereinafter referred to as "Dongfeng Technology") have signs of impairment based on the prices sold after the period. At the end of the reporting period, Dongfeng Technology's net book value of the machinery and equipment with signs of impairment was 1.8104 million yuan, and the amount recovered after disposal was 202,400 yuan. Dongfeng Technology accrued fixed asset impairment losses of 1.608 million yuan in the current period.
④The wholly-owned subsidiary Chongqing Shoukian Medicinal Packaging Materials Co., Ltd. (hereinafter referred to as "Chongqing Shoukian") conducted a comprehensive annual inventory of fixed assets in 2025, and a total of 16 The set of injection molds will cease to be put into production as the product structure is adjusted. After joint identification and confirmation by the technology department and the production department, the mold design structure has densely arranged ejector pins, the heat flow system structure is not universal, and the stability is poor. In view of the mold's low production capacity, high energy consumption, and insufficient efficiency, it is planned to be scrapped. At the end of the reporting period, the net book value of the injection mold that showed signs of impairment in Chongqing Shouguang was 963,100 yuan, and the estimated recovery amount from residual value realization was 112,000 yuan. Chongqing Shouguan accrued fixed asset impairment losses of 851,100 yuan in the current period.
⑤The holding subsidiary Chongqing Dongfeng Shoukian Medicinal Glass Packaging Co., Ltd. (hereinafter referred to as "Chongqing Dongfeng Shoukian") focused on promoting project construction during the reporting period. It has completed the main construction of the No. 1 factory as scheduled, built the No. 1 kiln and started ignition, and has successively completed the installation, commissioning and trial production of the bottle making machine. The box-type substation purchased by Chongqing Dongfeng Shouguan for temporary power consumption during the early construction of the factory is currently idle and has signs of impairment. Based on the principle of caution, Chongqing Dongfeng Shouguan hired a third-party evaluation agency to evaluate the recoverable amount of the machinery and equipment. According to Jiangsu Zhongqi Huazhongtian Asset Appraisal Co., Ltd.'s "Quzhou Dongfeng New Materials Group Co., Ltd.'s proposed impairment test involves the recoverable amount of machinery and equipment reported by Chongqing Dongfeng Shoukian Medicinal Glass Packaging Co., Ltd. Asset Assessment Report" (Su Zhongzi Pingbao Zi (2026) No. 12045), on December 31, 2025, the base date of the assessment, the net book value of the machinery and equipment was 155,800 yuan, and its recoverable amount was 30,200 yuan, and Chongqing Dongfeng First Key made provision for fixed asset impairment losses of 125,600 yuan in the current period.
⑥The controlled subsidiary Jiangsu Fuxin Huakang Packaging Materials Co., Ltd. (hereinafter referred to as "Fuxin Huakang") is advancing the construction of the "Pharmaceutical Packaging Rigid Sheet Production Project" as planned. The machinery and equipment of the coating line in the old factory building, the coating machine oven, coating head, and laminating machine are obsolete, idle, and are planned to be scrapped. At the end of the reporting period, the net book value of Fuxin Huakang's machinery and equipment with signs of impairment was RMB 91,900, and the estimated residual value realized and recovered was RMB 15,000. Fuxin Huakang accrued an impairment loss of RMB 76,900 for fixed assets in the current period.
(3) Impairment losses on intangible assets
In recent years, China's lithium battery separator market has grown rapidly, with both shipments and output value increasing significantly. The upgrading of downstream products has accelerated, and the requirements for battery energy density and fast charging performance have increased, which has also prompted separator companies to continuously develop and improve products. In accordance with the relevant requirements of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", based on the principle of prudence, the company hired a third-party intermediary agency to conduct an impairment test on the operating long-term asset group of its holding subsidiary Shenzhen Bosheng New Materials Co., Ltd. and its wholly-owned subsidiaries Hunan Bosheng New Energy Technology Co., Ltd. and Yancheng Bosheng New Energy Co., Ltd. (hereinafter collectively referred to as "Shenzhen Bosheng"). In order to further allocate the impairment loss of the asset group among the asset groups, the appraisal agency conducted an impairment test on the estimated recoverable amount of Shenzhen Bosheng's intangible assets-technology portfolio ownership on December 31, 2025. According to Jiangsu Zhongqi Huazhongtian Asset Appraisal Co., Ltd.'s "Quzhou Dongfeng New Materials Group Co., Ltd. plans to conduct impairment testing involving the intangible assets declared by Shenzhen Bosheng New Materials Co., Ltd. - Technology Portfolio Ownership Recoverable Amount Asset Assessment Report" (Su Zhongzi Appraisal Zi (2026) No. 12056), on the assessment base date 2025 As of December 31, 2019, the net book value of Shenzhen Bosheng's ownership of this intangible asset-technology portfolio was RMB 78.9315 million, and the recoverable amount after evaluation was RMB 44.000 million. Shenzhen Bosheng accrued an impairment loss of intangible assets of RMB 34.9315 million for the current period.
(4) Impairment losses on long-term equity investments
In December 2021, the company jointly invested with Huidu Environmental Protection Technology (Shanghai) Co., Ltd. and Wang Jun to establish Huixiaodu Technology (Shanghai) Co., Ltd. (hereinafter referred to as "Huixiaodu") to engage in recycling packaging business. As of December 31, 2025, the company's shareholding ratio in Hui Xiaodu was 34.30%, and the net book amount of long-term equity investment was 1.5112 million yuan. Since August 2025, Huixiaodu's core business has completely stagnated due to factors such as the deterioration of the market environment, poor management, and the breakage of the capital chain. The core team has been disbanded, there is no new business plan, it has stopped operations, and it is insolvent. In view of Hui Xiaodu's stagnant operation and insolvency, at the end of the reporting period, the company made provision for impairment in full based on the net book amount of its long-term equity investment, and accrued impairment losses of RMB 1.5112 million for long-term equity investment in the current period.
(5) Goodwill impairment loss
The company acquired 75% of the equity of Guizhou Chiba in April 2019, and Guizhou Chiba has been included in the company's consolidated financial statements since April 30, 2019. According to "Accounting Standards for Business Enterprises No. 20 - Business Merger", the difference of RMB 87.3546 million between the equity acquisition consideration paid by the company for the acquisition of 75% equity of Guizhou Qianye and the fair value share of Guizhou Qianye's identifiable assets acquired on the acquisition date was recognized as goodwill.
The company acquired 75% of the equity of Chongqing Shoukian in September 2020, and Chongqing Shoukian has been included in the company's consolidated financial statements since September 30, 2020. According to "Accounting Standards for Business Enterprises No. 20 - Business Merger", the difference of RMB 89,095,300 between the equity acquisition consideration paid by the company for the acquisition of 75% equity of Chongqing Shoukian and the fair value share of Chongqing Shoukian's identifiable assets acquired on the acquisition date was recognized as goodwill.
The company acquired 70% of Changzhou Huajian's equity in September 2020, and Changzhou Huajian has been included in the company's consolidated financial statements since September 30, 2020. According to "Accounting Standards for Business Enterprises No. 20 - Business Merger", the difference of RMB 56.686 million between the equity acquisition consideration paid by the company for the acquisition of 70% equity of Changzhou Huajian and the fair value share of Changzhou Huajian's identifiable assets acquired on the acquisition date was recognized as goodwill.
The company acquired 85% of Fuxin Huakang's equity in June 2021, and Fuxin Huakang has been included in the company's consolidated financial statements since June 30, 2021. According to "Accounting Standards for Business Enterprises No. 20 - Business Merger", the difference of RMB 9.291 million between the equity acquisition consideration paid by the company for the acquisition of 85% of Fuxin Huakang's equity and the fair value share of Fuxin Huakang's identifiable assets acquired on the acquisition date was recognized as goodwill.
The company's subsidiaries Guizhou Chiba, Chongqing Shoukian, Changzhou Huajian and Fuxin Huakang 2025 In the year, due to the impact of medical insurance fee control and drug centralized procurement policies, industry supervision, and the macro-environment, the downstream pharmaceutical industry was under overall pressure, and cost control of pharmaceutical companies became stricter; the pharmaceutical packaging material industry was affected by multiple factors such as shrinking demand in the pharmaceutical industry, weak consumption, and intensified market competition, and production, sales, and prices declined. In addition, upstream raw materials and energy prices fluctuated, corporate environmental policies, safety supervision upgrades, and quality management and quality monitoring improved. Pharmaceutical packaging operating income and profit levels both declined year-on-year, and future operating results and cash flow are expected to be significantly lower than expected. According to the relevant provisions of the Accounting Standards for Business Enterprises and the company's accounting policies, if there are signs of impairment of an asset, its recoverable value should be estimated, and impairment provisions should be made based on the amount by which the recoverable value is lower than the book value. In accordance with the relevant requirements of "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", during the goodwill impairment test in 2025, the company hired a third-party appraisal company to conduct asset valuation on the goodwill of the above four pharmaceutical packaging material subsidiaries and the recoverable value of related asset portfolios. According to the goodwill impairment test and assessment confirmation, the company's provision for goodwill impairment during the reporting period totaled RMB 157.8154 million. For details, please refer to the company's "Proposal on Provision for Impairment of Long-term Equity Investments and Goodwill Impairment Provision".
(3) The impact of this impairment provision on the company
The company plans to accrue a total of RMB 308.6105 million in credit impairment losses and asset impairment losses in this period, which is in compliance with the "Accounting Standards for Business Enterprises" and relevant policy regulations. The accrual of relevant asset impairment losses is fully based and fairly reflects the company's asset value and financial status at the end of the reporting period. It reduces the total profit of the current period's consolidated statements by RMB 308.6105 million and reduces the net profit of the current period's consolidated statements by RMB 30,861.05. million, reducing the net profit attributable to the owners of the parent company in the current consolidated statement by RMB 248,521,300.
2. Approval procedures for the provision of asset impairment provisions this time;
The twelfth meeting of the company's sixth board of directors reviewed and approved the "Proposal on Provision for Asset Impairment". The voting results were: 7 votes in favor, 0 votes against, and 0 abstentions.
Announcement is hereby made.
Board of Directors of Quzhou Dongfeng New Materials Group Co., Ltd.
April 25, 2026