Tianjin Capital Environmental Protection Group Company Limited announced that its board has approved a provision for asset impairment of RMB125.80 million for the financial year ended 31 December 2025. Concurrently, the company will reverse previously recognised impairment losses amounting to RMB66.42 million.

The impairment test—conducted under China Accounting Standards for Business Enterprises—covered trade receivables, other receivables and long-term receivables. Expected credit-loss methodology was applied, assessing significant individual exposures and grouping remaining assets by similar credit-risk characteristics.

Management stated that the RMB125.80 million impairment will be charged directly to the 2025 income statement, representing 13.73% of the absolute value of the company’s most recently audited annual net profit. The proposed adjustments, adopted at the fifth meeting of the ninth session of the board on 25 March 2026, aim to present a “true and fair” view of asset quality and adhere to the principle of prudence.

The board confirmed that the decision-making procedures complied with the Company Law of the People’s Republic of China and the company’s Articles of Association. Nine directors attended and unanimously approved the resolution.