Shanghai Electric Group Company Limited (stock name: SH ELECTRIC) announced that its board on 30 March 2026 approved asset and credit impairment provisions for FY 2025 that reduced profit before tax by a combined RMB 2.42 billion.

The group recognised RMB 2.49 billion in credit-related provisions and reversed RMB 1.46 billion, resulting in a net credit impairment loss of RMB 1.03 billion. Key drivers were: • Notes receivable: net loss impact of RMB 147.25 million, mainly tied to commercial acceptance bills. • Accounts receivable: net loss impact of RMB 249.93 million after heightened collection efforts offset part of new provisions. • Other and long-term receivables: net loss impact of RMB 685.29 million, largely from finance-lease receivables and related-party loans. • Other assets generated a RMB 51.80 million gain owing to reversals in debt investments and loans.

Asset impairment charges reached RMB 2.19 billion, with RMB 0.80 billion reversed, leaving a net asset impairment loss of RMB 1.39 billion. The principal components were: • Inventory write-downs: RMB 941.02 million, reflecting lower net realisable values amid raw-material price volatility. • Fixed-asset impairments: RMB 307.86 million, as certain assets’ carrying values exceeded recoverable amounts. • Additional provisions for prepayments, investment properties and other assets: RMB 140.11 million.

Combined, these items lowered 2025 profit before tax by RMB 2.42 billion. Management stated that the provisions align with China’s Accounting Standards for Business Enterprises and aim to present a true and fair view of the company’s financial position. Investors are advised to exercise caution when trading the company’s securities.