*ST Mingde: Announcement on Provision for Asset Impairment in the Half Year of 2026
Securities code: 002932 Securities abbreviation: *ST Mingde Announcement number: 2026-066 Wuhan Mingde Biotechnology 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 contains no false records, misleading statements or major omissions.
In accordance with the relevant provisions of the "Accounting Standards for Business Enterprises", the Stock Listing Rules of the Shenzhen Stock Exchange and the accounting policies of Wuhan Mingde Biotechnology Co., Ltd. (hereinafter referred to as the "Company"), the company conducted an impairment test on assets with signs of impairment as of June 30, 2026. In line with the principle of caution, impairment provisions were made for assets that may suffer impairment losses. This provision for asset impairment does not need to be submitted to the board of directors or shareholders' meeting for review. The specific information is hereby announced as follows:
1. Provision for asset impairment this time
(1) Reasons for the provision of asset impairment provisions this time
In accordance with the requirements of the "Accounting Standards for Business Enterprises" and other relevant regulations, in order to more truly and accurately reflect the company's assets and financial status as of June 30, 2026, the company conducted an inventory and impairment test on various assets within the scope of the consolidated statements based on the principle of prudence, and made impairment provisions for assets that may suffer impairment losses based on the impairment test results.
(2) The asset scope, amount and reporting time of this provision for asset impairment
After the company conducted an inventory and asset impairment test, it planned to accrue a total of 14.2319 million yuan in impairment provisions for various assets from January to June 2026. The specific details are as follows:
Unit: 10,000 Yuan Subject Amount (10,000 Yuan)
Impairment losses on accounts receivable 1,071.74 Impairment losses on long-term receivables 181.42 Credit impairment losses
Impairment losses on other receivables 24.44 Subtotal 1,277.60 Inventory depreciation losses and impairment losses on contract performance costs 145.59 Asset impairment losses
Subtotal 145.59
A total of 1,423.19 The reporting period for this asset impairment provision is from January 1, 2026 to June 30, 2026.
2. Description of asset impairment provisions
(1) Credit impairment losses
Unit: RMB 10,000 Project name Accounts receivable Long-term receivables Book balance of other receivables 90,404.24 6,643.10 4,809.51
Balance of bad debt provision 52,660.39 199.29 701.64 Estimated recoverable amount of assets 37,743.85 6,443.81 4,107.87 There are obvious signs of credit risk that the debtor is likely to be unable to fulfill its repayments.
The credit risk of the receivables of the payment obligation shall be assessed individually. In addition to individually assessed financial assets with respect to the recoverable amount of credit risk assets, financial assets are divided into different groups based on common risk characteristics, and credit losses are assessed on a portfolio basis throughout the expected duration.
risk of loss.
Basis for the provision of asset impairment provisions "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" Amount of provision from January to June 2026 1,071.74 181.42 24.44
Reason for accrual: In accordance with the Accounting Standards for Business Enterprises and the company’s bad debt accrual policy
(2) Asset impairment losses
Unit: RMB 10,000 Project name Inventory and contract performance costs
Book balance 32,835.42
Balance of impairment provision 21,609.30
Net realizable value/Estimated recoverable amount of assets
11,226.11
The calculation process of the recoverable amount of an asset is the estimated selling price of the inventory minus the estimated costs that will be incurred upon completion.
Basis for the provision of asset impairment provisions on the amount after costs, estimated sales expenses and related taxes and fees "Accounting Standards for Business Enterprises No. 1 - Inventory"
Amount accrued from January to June 2026 145.59
The reason for the provision is mainly due to the risk of sluggishness in some inventories.
3. Method of accruing asset impairment provisions
(1) Credit impairment losses
The company based on the nature of financial assets such as accounts receivable, other receivables, notes receivable and customer credit risk
According to the risk characteristics, expected credit losses are assessed individually and collectively, and credit impairment provisions are made.
Individual accrual: When there is evidence that an individual receivable is impaired, a separate impairment test is conducted and confirmed.
Impairment losses on individual accounts receivable.
Portfolio accrual: Based on the expected credit loss model, taking into account the credit risk characteristics of different customers, using the customer credit rating combination and aging combination, combined with reasonable and well-founded information such as historical credit losses, current conditions, and predictions of future economic conditions, the expected credit losses throughout the duration are determined.
(2) Provision for inventory decline
On the balance sheet date, inventories should be measured at the lower of cost and net realizable value. When the inventory cost is higher than its net realizable value, inventory depreciation provisions should be made. Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.
For inventory of goods that are directly for sale, such as finished goods, inventory, and materials for sale, during the normal production and operation process, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes; for material inventories that need to be processed, during the normal production and operation process, the estimated selling price of the finished goods produced is deducted to the time of completion. The net realizable value is determined based on the estimated costs, estimated sales expenses and relevant taxes. For inventories held for the execution of sales contracts or labor contracts, the net realizable value is calculated based on the contract price. If the quantity of inventory held is greater than the quantity ordered in the sales contract, the net realizable value of the excess inventory is calculated based on the general sales price.
After the provision for inventory depreciation is made, if the factors that previously caused the inventory value to be written down have disappeared, causing the net realizable value of the inventory to be higher than its book value, the amount of the inventory depreciation provision that was originally accrued will be reversed, and the amount reversed will be included in the current profit and loss.
4. Explanation by the Audit Committee of the Board of Directors on the rationality of this provision for asset impairment
The Audit Committee of the Board of Directors believes that the company's current provision for asset impairment is in compliance with the relevant provisions of the "Business Accounting Standards", "Shenzhen Stock Exchange Stock Listing Rules" and accounting policies and accounting estimates. Based on the principle of prudence, it has made provision for assets that may suffer asset impairment losses or credit impairment losses. This provision for asset impairment fairly reflects the company's financial status, asset values and operating results, making the company's accounting information more reasonable. Therefore, it is agreed that the company will make provision for asset impairment this time.
5. The impact of this provision of asset impairment provisions on the company
The company's impairment provision for the first half of 2026 is RMB 14.2319 million, which will reduce the total profit for the first half of 2026 by RMB 14.2319 million and reduce owners' equity accordingly. The above data are preliminary estimates by the company's financial department and have not been audited by an accounting firm.
Announcement is hereby made.
Board of Directors of Wuhan Mingde Biotechnology Co., Ltd.
August 28, 2026