On 18 March 2026, the board of Sinopec Shanghai Petrochemical Company Limited (stock code: 00338) approved a total asset-impairment provision of RMB397.00 million for fiscal-year 2025.

The impairment test, conducted under China’s Accounting Standard for Business Enterprises (ASBE), identified the following items:

• Inventory: RMB393.00 million recognised after year-end valuation showed carrying amounts exceeding net realisable values, in line with ASBE No. 1 – Inventory.

• Accounts receivable: RMB4.00 million set aside for expected credit losses, in accordance with ASBE No. 22 – Financial Instruments.

Balance-sheet impact: the inventory-impairment reserve stood at RMB470.00 million at the beginning of 2025. After the RMB393.00 million provision and RMB399.00 million of write-offs during the year, the closing balance reached RMB463.00 million.

The board stated that the adjustments accurately reflect asset conditions and comply with relevant accounting standards and the company’s financial-management policies.