Hainan Drinda New Energy Technology Co., Ltd. (02865) reported a total asset impairment provision of RMB71.0104 million for the first three quarters of 2025. According to the announcement, the company conducted a comprehensive review based on China Accounting Standards for Business Enterprises and identified potential losses in receivables, inventories, and goodwill.

The total credit impairment loss reached RMB3.3026 million, mainly stemming from bills receivables, accounts receivables, and other receivables. Meanwhile, the inventory impairment provision amounted to RMB66.3297 million, reflecting the difference between the cost of certain inventory items and their net realizable value. In addition, goodwill impairment reached RMB1.3781 million, primarily related to non-core goodwill as a result of deferred income tax liabilities being reversed.

The company stated that these adjustments adhere to the principle of prudence and aim to present a fair view of its financial position as of September 30, 2025. Following these provisions, net profit and equity attributable to the owners of the parent company declined by RMB60.4156 million for the reporting period. This financial information is unaudited, and the final figures will be subject to annual audit results.