Sichuan Changhong reports significant H1 2025 impairment provisions

Sichuan Changhong Electric announced H1 2025 provisions for credit impairment losses totaling CNY 16,136.21 million, offset by a reversal of CNY 1,562.92 million, resulting in a net reduction of total profit by CNY 14,573.29 million. Additionally, asset impairment losses amounted to CNY 28,186.51 million, with a reversal of CNY 7.52 million, increasing total profit by CNY 256.28 million. The company also reported estimated liabilities totaling CNY 9,425.03 million, driven by an increase in litigation-related provisions (CNY 695.19 million) and product quality assurance and patent fees (CNY 8,729.84 million).

These provisions are consistent with the company’s accounting policies and estimates under enterprise accounting standards, reflecting a prudent approach to its financial reporting. Total asset impairment provisions as of June 30, 2025, stand at CNY 384,404.76 million, with estimated liabilities at CNY 63,578.16 million. The board of directors approved these provisions on August 27, 2025, affirming their fair representation of the company's financial health.