Changhong Electric books ¥517m in impairment losses for first nine months

Sichuan Changhong Electric announced that its board of directors approved a provision for credit and asset impairment losses totaling ¥517.23 million for the first nine months of 2025. This decision, approved on October 24, 2025, is in accordance with accounting standards and is expected to reduce the company's total profit for the period by the same amount. The credit impairment loss is ¥62.20 million, representing 3.29% of net profit, and the asset impairment loss is ¥455.03 million, representing 24.05% of net profit for the period.

The impairment provisions are based on a comprehensive review of the company's assets as of September 30, 2025, to accurately reflect its financial condition and operating results. The credit impairment loss is primarily due to changes in the aging structure of accounts receivable, while the asset impairment loss mainly relates to inventory write-downs (¥454.88 million) and, to a lesser extent, intangible assets (¥9.04 million) for non-patent technology.

In related news, Sichuan Changhong Electric's third-quarter report for 2025 was also approved by the board, reflecting these impairment provisions. To provide further clarity and engage with investors, the company will host a third-quarter performance briefing on November 5, 2025, from 15:00 to 16:00, accessible via the SSE Roadshow Center.