Jiangsu Lopal Tech. Group (Stock Code: 2465) disclosed that its board of directors approved an impairment provision totaling RMB108.95 million for the first three quarters of 2025. According to the announcement, the provision comprises credit impairment losses and inventory write-downs, which directly reduced the company’s consolidated total profit by the same amount.

A review and impairment test identified specific risk factors affecting financial assets, including receivables, and inventories linked to fluctuations in the market price of lithium carbonate, a key raw material in the company’s lithium iron phosphate products. The credit impairment provision includes allowances for bills receivable, accounts receivable, and other receivables. Meanwhile, the inventory write-down helps more accurately reflect asset values amid ongoing market changes.

The announcement states that making these provisions aligns with the relevant accounting standards and prudence principle. The board and Audit Committee concluded that this step properly discloses potential risks, fairly represents the financial position, and safeguards the interests of shareholders by presenting a true picture of the company’s asset and profit status for the reporting period.