Zhifei Biotechnology: Announcement on Provision for Asset Impairment in 2025

Securities code: 300122 Securities abbreviation: Zhifei Biotechnology Announcement number: 2026-25

Chongqing Zhifei Biological Products Co., Ltd.

Announcement on Provision for Asset Impairment in 2025

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and contains no false records, misleading statements or major omissions.

Chongqing Zhifei Biological Products Co., Ltd. (hereinafter referred to as the "Company") reviewed and approved the "Proposal on Provision for Asset Impairment in 2025" at the 11th meeting of the 6th Board of Directors held on April 26, 2026. The specific information is now announced as follows:

1. Overview of provision for asset impairment

In order to truly reflect the company's financial status and asset value, in accordance with the relevant provisions of the "Business Accounting Standards", "Shenzhen Stock Exchange GEM Stock Listing Rules" and "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 2 - Standardized Operation of GEM Listed Companies", the company will judge whether there are signs of impairment on various assets as of December 31, 2025.

Based on the principle of prudence, the company conducts impairment tests for assets with signs of impairment in accordance with the methods specified in the Accounting Standards for Business Enterprises and the requirements of the company's accounting policies. For assets that do have signs of impairment, the company accrues asset impairment provisions in accordance with relevant regulations. After calculation, the total amount of impairment losses for various assets this time was RMB 14,128,158,800, as follows:

Unit: Ten thousand yuan project amount

Credit impairment loss

50,973.00 Provision for inventory decline and provision for impairment of contract performance costs

1,361,842.88 total

1,412,815.88

2. Recognition standards and accrual method of asset impairment provision this time

(1) Credit impairment losses

(1) Impairment testing method of accounts receivable

For accounts receivable and other receivables that do not contain significant financing components due to daily operating activities such as selling goods and providing services, the company uses simplified measurement methods to measure loss provisions based on an amount equivalent to the expected credit losses during the entire duration.

(2) Combination categories of accounts receivable and basis for determination

The company groups accounts receivable based on the similarity and correlation of credit risk characteristics based on information such as age of accounts receivable, nature of payment, credit risk exposure, historical payment collection, etc. The company determines that aging is the main factor affecting the credit risk of accounts receivable (and contract assets). Therefore, the company evaluates its expected credit losses based on the aging portfolio. In 2025, the company has a provision for bad debts of RMB 509.73 million.

(2) Provision for inventory decline

The company's inventory mainly includes raw materials, work-in-progress and self-made semi-finished products, turnover materials, low-value consumables, finished products, inventory goods, etc. The net realizable value of commodity inventories that are directly for sale, such as inventory, work in progress and materials for sale, is determined based on the estimated selling price of the inventory minus estimated sales expenses and related taxes; for material inventories held for production, the net realizable value is determined based on the estimated selling price of the finished products produced minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.

In the face of industry changes brought about by fluctuations in market demand, the company will gradually participate in government vaccination projects to benefit the people in 2025, fulfill its social responsibilities with practical actions, and actively respond to market changes. The company plans to further expand the scope of Huimin's participation, and in accordance with the requirements of the Accounting Standards for Business Enterprises, accrue inventory depreciation reserves for the active products in Huimin projects that are lower than cost unit prices; and fully accrue inventory depreciation reserves for inventory that does not meet the needs of production and operations and has expired or is about to expire. In 2025, the company made provision for inventory depreciation and contract performance cost impairment provision of RMB 13,618,428,800, of which RMB 12,766,074,800 was made for the main agent product HPV vaccine.

Unit: RMB 10,000 Decrease this year

Item Beginning balance Provision for the year Ending balance reversal Write-off

Raw materials 2,648.03 115.84 227.38 227.56 2,308.93 Work in progress 1,244.90 1,170.90 - 2,124.06 291.75 Inventory goods 1,902.81 1,360,783.51 - 25,698.19 1,336,988.14

Total 5,795.75 1,362,070.26 227.38 28,049.81 1,339,588.81

3. Reasonable explanation of this provision for asset impairment and its impact on the company

The company's current provision for asset impairment complies with and complies with the "Accounting Standards for Business Enterprises" and the company's relevant accounting policies. This current provision for asset impairment is based on the principle of accounting prudence and fully and fairly reflects the company's financial status, asset value and operating results at the end of 2025. The provision for asset impairment in this consolidated statement is RMB 14,128,158,800, which will reduce the company's total profit in 2025 by RMB 14,128,158,800. The company's "2025 Annual Report" has already included advance asset impairment provisions.

This provision for asset impairment has been audited by ShineWing Accounting Firm (Special General Partnership). The company's current provision for asset impairment complies with accounting standards and relevant policies and regulations. The provision is based on sufficient basis and is in line with the company's actual situation. There is no harm to the interests of the company and all shareholders.

Announcement hereby

Board of Directors of Chongqing Zhifei Biological Products Co., Ltd.

April 28, 2026