Yunnan Jinggu Forestry reports significant Q3 asset impairment, net profit hit by debt

Yunnan Jinggu Forestry announced on October 29, 2025, that its board approved a provision for asset impairment totaling 39,466,936.40 yuan for the third quarter of 2025. This provision, made in accordance with accounting standards, will reduce the company's consolidated net profit by the same amount. The impairment primarily includes credit impairment losses of 38,971,375.13 yuan for accounts receivable and inventory depreciation of 2,587,884.10 yuan.

The company's third-quarter report revealed a significant decrease in operating income, down 85.53% for the quarter and 58.77% year-to-date. This was attributed to the suspension of operations at its subsidiary, Tangxian Huiyin Wood Industry, due to debt disputes and market conditions. This operational halt led to a substantial decline in man-made board product sales, production, and inventory, with production volume dropping by 82.05% year-on-year.

The board of directors deemed the impairment provision reasonable, as it provides a more accurate reflection of Yunnan Jinggu Forestry’s financial position and impact on operating results. The unaudited provision is subject to final confirmation by the annual audit. The company also confirmed no related-party transactions or significant changes in shareholdings by major investors during the period.