CSD Water Service(SH:603903) Shang Hai Zheng Quan Bao·2026-01-23 20:45Core Viewpoint - The company plans to recognize an asset impairment provision of between 160 million to 210 million yuan for the year 2025, which is expected to reduce the total profit by the same amount [2][7]. Group 1: Asset Impairment Provision Overview - The company will conduct a comprehensive review and impairment testing of its assets as of December 31, 2025, in accordance with accounting standards, leading to a proposed impairment provision of 160 million to 210 million yuan [3][7]. Group 2: Specifics of Impairment Provision - Receivables Impairment Provision: The company plans to recognize an impairment provision of 90 million to 100 million yuan for receivables due to decreased payment capabilities of some customers [3][4]. - Contract Assets Impairment Provision: An impairment provision of 10 million to 20 million yuan is expected for contract assets, reflecting similar concerns regarding customer payment capabilities [4]. - Goodwill and Asset Group Impairment Provision: The company anticipates a provision of 30 million to 50 million yuan for goodwill and related asset groups based on performance and development expectations [5]. - Fixed Assets Impairment Provision: A provision of 30 million to 40 million yuan is expected for fixed assets due to market changes and technological updates [6]. Group 3: Impact of Impairment Provision on Financials - The proposed impairment provision will lead to a reduction in the company's total profit for 2025 by 160 million to 210 million yuan, aligning with the principles of prudence and accounting standards [7]. Group 4: Performance Forecast - The company forecasts a net loss of approximately 90 million yuan for 2025, with a net profit of around -97 million yuan after excluding non-recurring gains and losses [9][11]. - The previous year's performance showed a net loss of approximately 116.92 million yuan, indicating a worsening financial situation [13]. Group 5: Reasons for Expected Loss - The anticipated loss is attributed to several factors, including increased impairment losses on receivables and contract assets totaling approximately 100 million to 120 million yuan, and additional impairments on goodwill and fixed assets [14]. - The company emphasizes ongoing risk management and operational health, with a projected net cash flow from operating activities of about 200 million yuan for the year [14].