Announcement on Provision for Asset Impairment
Securities code: 605369 Securities abbreviation: Gongdong Medical Announcement number: 2026-028
Zhejiang Gongdong Medical Equipment Co., Ltd.
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.
On August 24, 2026, the 23rd meeting of the third board of directors of Zhejiang Gongdong Medical Equipment Co., Ltd. (hereinafter referred to as the "Company") reviewed and approved the "Proposal on Provision for Asset Impairment", and the relevant information is hereby announced as follows:
1. Overview of the current provision for asset impairment
In accordance with relevant regulations such as the "Accounting Standards for Business Enterprises" and the company's accounting policies, in order to objectively and fairly reflect the company's financial status and operating results for the first half of 2026, and based on the principle of prudence, the company conducted a comprehensive inspection and impairment test on the company's assets within the scope of consolidation as of June 30, 2026, and made corresponding impairment provisions for assets with signs of impairment. According to the impairment test results, as of June 30, 2026, a total of 5,878,063.35 yuan of various types of impairment losses have been provided. The specific details are as follows:
Unit: Yuan
Items (losses are listed with “-”) Amount incurred in the current period
Credit impairment losses (A) -2,091,128.50 Among them: bad debt losses on notes receivable -9,838.92 Bad debt losses on accounts receivable -2,020,244.71
Bad debt losses on other receivables -61,044.87 Asset impairment losses (B) -3,786,934.85 Among them: Inventory depreciation losses -2,978,406.24
Goodwill impairment losses -808,528.61 Total impairment losses of various types (C=A+B) -5,878,063.35
2. Specific explanation of the provision for asset impairment this time
(1) Provision for credit impairment losses
According to the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", the company carries out impairment treatment on financial assets measured at amortized cost and recognizes loss provisions based on expected credit losses. In the first half of 2026, the company conducted impairment testing on notes receivable, accounts receivable and other receivables. After testing, the company accrued a credit impairment loss of RMB 2,091,128.50 in the first half of 2026.
(2) Provision for asset impairment losses
- Loss from inventory depreciation
According to the provisions of "Accounting Standards for Business Enterprises No. 1 - Inventories", the balance sheet date is measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, a provision for inventory depreciation is made and included in the current profit and loss. When determining the net realizable value of inventory, it is based on the reliable evidence obtained and factors such as the purpose of holding the inventory and the impact of events after the balance sheet date are considered. After testing, in the first half of 2026, the company made corresponding asset impairment provisions of RMB 2,978,406.24 for inventory items.
- Goodwill impairment losses
According to the "Accounting Standards for Business Enterprises No. 8 - Impairment of Assets", the China Securities Regulatory Commission's "Accounting Supervision Risk Warning No. 8 - Impairment of Goodwill" and the company's accounting policies and other relevant regulations, the company merged the original TPI business and assets not under the same control, and the goodwill formed by adjusting the deferred income tax due to the assessment of the increase or decrease, the current period recognized the amount of goodwill impairment provision amount of RMB 808,528.61 due to the adjustment of the carry-forward deferred income tax expense. In summary, in the first half of 2026, the company accrued a total of RMB 3,786,934.85 in corresponding asset impairment losses.
3. The impact of this provision of asset impairment provisions on the company
The company's impairment provisions for the 2026 half-year were included in asset impairment losses and credit impairment losses. The total amount of impairment provisions for various assets was 5,878,063.35 yuan, which has been reflected in the company's 2026 half-year financial report. This provision for asset impairment is based on the principle of prudence, complies with the "Accounting Standards for Business Enterprises" and the company's accounting policies and other relevant regulations, is consistent with the company's actual situation, and does not involve changes in accounting policies and accounting estimates.
Announcement is hereby made.
Board of Directors of Zhejiang Gongdong Medical Equipment Co., Ltd.
August 25, 2026