CIMC Group Update: Asset Impairment Hits H1 2025 Earnings

China International Marine Containers (Group) Co., Ltd. (CIMC Group) reported total asset impairment provisions of RMB455,665,000 for the interim period of 2025. After a reversal of RMB109,824,000, the net effect will be a decrease in the group's total profit by RMB345,841,000, recognized in the consolidated income statement.

The provisions for January 1 to June 30, 2025, include RMB402,146,000 for financial instruments, with significant components being bad debt provisions for accounts receivable (RMB368,083,000) and other receivables (RMB29,156,000). Additionally, RMB35,732,000 was set aside for inventory and contract performance cost impairment, primarily for price-dropping, slow-moving, and obsolete materials.

Further provisions include RMB10,547,000 for contract assets based on expected credit loss and RMB7,240,000 for goodwill impairment. The impairment testing was conducted in accordance with PRC Accounting Standards and Shenzhen Stock Exchange guidelines.