Group 1 - The board of directors of Sichuan Changhong Electric Co., Ltd. held its 34th meeting of the 12th session on August 27, 2025, with all 9 directors present, complying with the Company Law and Articles of Association [1][2] - The meeting approved the proposal for the provision of credit and asset impairment reserves and estimated liabilities for the first half of 2025, in accordance with accounting standards and company policies, to accurately reflect the company's financial status [1][2] - The board also approved the full and summary report for the first half of 2025, confirming that the report meets the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange [2][3] Group 2 - A continuous risk assessment report for Sichuan Changhong Group Financial Co., Ltd. was reviewed and approved, based on various evaluations of its financial qualifications and operational capabilities [2][3] - The voting results for the risk assessment report showed 4 votes in favor and 5 abstentions, with related directors abstaining from the vote [3]

Core Viewpoint - The company has decided to recognize credit and asset impairment losses totaling 15.43 million yuan as of June 30, 2025, to accurately reflect its financial condition and asset value [1][2]. Summary by Sections Overview of Impairment Preparation - The company conducted a comprehensive review and impairment testing of its credit and assets as of June 30, 2025, in accordance with relevant accounting standards and regulations [1][2]. Details of Impairment Losses - The total impairment losses recognized amount to 15,432,731.87 yuan, which includes: - Credit impairment losses of 11,255,781.53 yuan, primarily from accounts receivable [2]. - Asset impairment losses of 4,176,950.34 yuan, specifically for inventory write-downs [2]. Explanation of Impairment Preparation - The company assesses credit impairment on receivables based on objective evidence and categorizes financial instruments into groups for expected credit loss estimation [3][4]. - Inventory impairment is determined by comparing the cost of inventory with its net realizable value, ensuring accurate financial reporting [4]. Impact on Financial Statements - The recognition of these impairment losses will reduce the company's total profit by 1,543.27 million yuan for the first half of 2025 [5]. Board Opinions - The board of directors supports the impairment preparation as it reflects the company's actual financial situation and complies with accounting standards [5]. - The audit committee also agrees that the impairment preparation aligns with the company's financial management policies and does not harm the interests of the company or its shareholders [5].

Group 1 - The company reported a beginning balance of accounts receivable impairment provision of 40.16 million yuan for 2024, with an additional provision of 5.45 million yuan and a write-off of 6.81 million yuan, resulting in an ending balance of 38.79 million yuan [1] - The beginning balance of other receivables impairment provision was 1.40 billion yuan, with a provision of 141.98 million yuan and a write-off of 2.83 million yuan, leading to an ending balance of 1.54 billion yuan [2] - The beginning balance of dividend receivables impairment provision was 14.12 million yuan, with a provision of -0.09 million yuan and a write-off of 4.17 million yuan, resulting in an ending balance of 9.86 million yuan [2] Group 2 - The company made a provision for long-term equity investment impairment of 10.18 million yuan for the year 2024 [3] - The company announced a change in accounting policy due to the revised accounting standards issued by the Ministry of Finance, which will not significantly impact the company's financial status, operating results, or cash flow [6][13] - The new accounting policy will be effective from January 1, 2024, and aims to reflect the company's financial condition and operating results more objectively and fairly [7][10] Group 3 - The company will hold an online performance briefing on May 16, 2025, to discuss the 2024 annual report and allow investors to ask questions in advance [14][15] - The company reported a negative retained earnings balance of 3.49 billion yuan as of December 31, 2024, which exceeds one-third of the company's paid-in capital, necessitating a shareholders' meeting [24][26] - The company plans to not distribute cash dividends or issue bonus shares for the 2024 fiscal year due to the negative retained earnings [24][70]