Sinotrans Limited announced that its Board approved a total impairment provision of RMB1.05 billion for the 2025 fiscal year, reflecting a comprehensive review conducted under Accounting Standards for Business Enterprises No. 8 and No. 22.

The provision comprises RMB378.21 million in credit impairment losses and RMB676.47 million in asset impairment losses.

Key components are as follows: • Goodwill impairment: RMB561.21 million, driven mainly by under-performance at seven KLG Europe subsidiaries (EUR60.90 million, equivalent to RMB490.74 million) and Sinotrans Logistics Nanjing (RMB70.47 million). Management lowered medium-term revenue growth and EBIT assumptions, citing persistent market challenges and heightened uncertainty in demand recovery. Discount rates applied ranged from 12.92 % to 13.60 %. • Fixed assets: RMB82.37 million. • Investment properties: RMB22.23 million. • Long-term equity investments: RMB10.66 million.

Credit impairments were booked against accounts receivable (RMB247.44 million) and other receivables (RMB130.77 million), applying individual assessments for disputed or high-risk items and portfolio-based expected-loss matrices for aging receivables.

The Audit Committee approved the impairment proposal on 27 March 2026, and the Board ratified it on 30 March 2026, stating that the charges align with accounting standards and accurately reflect the company’s asset quality and operating results.