China International Marine Containers (Group) Co., Ltd. (CIMC) announced that an asset-impairment charge of RMB1.62 billion will be recognised in its 2025 financial statements. After a RMB217.72 million reversal, the net impact on 2025 pre-tax profit is expected to be a reduction of RMB1.40 billion, with a corresponding decrease in year-end shareholders’ equity.

The impairment testing, conducted under PRC Accounting Standards for Business Enterprises, covered financial instruments, inventories, prepayments, contract assets and long-term assets. Key components are:

• Financial assets: A total of RMB807.04 million in expected-credit-loss provisions, led by accounts-receivable write-downs of RMB740.94 million and other receivables of RMB59.63 million. • Prepayments: RMB250.99 million, mainly linked to long-aged equipment advances. • Inventories and contract performance costs: RMB342.87 million, reflecting price declines and slow-moving or obsolete stock in raw materials, work-in-progress, finished goods and offshore engineering projects. • Contract assets: RMB17.54 million, based on expected credit-loss modelling. • Long-term assets: RMB203.08 million in new charges, including RMB84.40 million against goodwill (primarily in energy, chemical and logistics equipment businesses), RMB78.43 million for intangible assets, RMB37.16 million for fixed assets, RMB1.00 million for construction-in-progress, and RMB2.09 million for right-of-use assets.

Management stated that the provisions adhere to relevant accounting requirements and present a prudent view of asset recoverability. The adjustments aim to ensure the 2025 financial statements reflect CIMC’s true financial position and operating results.