China First Heavy Industries writes off long-standing payables, set to boost 2025 profit

China First Heavy Industries Co., Ltd. announced the write-off of 6,514.02 million yuan in long-outstanding accounts payable, a move expected to boost the company’s 2025 total profit by the same amount. The write-off, impacting 1,329 long-outstanding accounts, addresses payables deemed uncollectible due to reasons such as entity de-registration, license revocation, inability to contact creditors, or prolonged dormancy. This action aligns with accounting standards and is intended to accurately reflect the company's financial status, without involving related-party transactions or harming shareholder interests.

The decision was approved on October 13, 2025, during the Fourth Board of Directors’ Sixtieth Meeting and the Fourth Board of Supervisors’ Thirty-Sixth Meeting. All four attending directors unanimously voted in favor of the write-off resolution. Both the audit and risk committee and the board of directors concluded that the write-off procedures were reasonable and consistent with accounting policies, benefiting the company's overall financial health.

Furthermore, during the same board meeting, the company also addressed other corporate governance matters. These included approving a proposal to abolish the board of supervisors and revise the "Articles of Association," as well as amendments to the "Shareholders' Meeting Rules," "Board of Directors' Meeting Rules," and "Board of Directors' Specialized Committees' Work Rules." These resolutions will be submitted to a company shareholders' meeting for final approval.