Dunhuang Seed Group announces significant inventory impairment for Q3 2025

Gansu Dunhuang Seed Group Co., Ltd. (the "Company") disclosed a provision for inventory impairment totaling CNY 12.21 million, as of September 30, 2025. This provision was made in accordance with "Enterprise Accounting Standards" and the company's financial management system, reflecting a cautious approach to asset valuation. The write-down specifically targets potential impairment in corn hybrid seeds.

The impairment provision of CNY 12.21 million is expected to reduce the company's total profit for the third quarter of 2025 by the same amount. The company asserts that this measure aligns with accounting standards and its internal policies, aiming to present a true and objective picture of its financial health and operating results. It is not anticipated to disrupt normal operations or harm the interests of the company and its shareholders.

Gansu Dunhuang Seed Group Co., Ltd. advises investors that this inventory impairment provision has not yet been audited by the company's annual external auditors. The final confirmed amount will be subject to the annual audit by the accounting firm, and investors are cautioned to consider this investment risk.