Baotou Huazi Industry reports significant Q3 profit increase from impairment reversal

Baotou Huazi Industry announced a projected increase of CNY 26,868,700 in its Q3 2025 consolidated net profit, primarily driven by a CNY 32,000,000 reversal of impairment provisions for other receivables. The company also reported provisions for credit impairment losses totaling CNY 3,632,600 and inventory depreciation of CNY 2,742,100, with write-offs or write-downs amounting to CNY 1,243,400. These adjustments are fully recognized in the current period.

The significant reversal in other receivables relates to a 2013 land acquisition and construction project, where CNY 32,000,000 was initially advanced. After discussions with the local government, the land acquisition was terminated, and the advanced funds are expected to be fully recovered, with CNY 16,000,000 already received by September 30, 2025. This recovery is anticipated to further increase the Q3 2025 consolidated net profit by CNY 31,200,000.

The board and supervisory committee confirmed that these impairment provisions and reversals align with accounting standards and the company’s policies, accurately reflecting its financial position and operating results for the period.