Shandong Hi-Speed anticipates 690m yuan impairment loss

Shandong Hi-Speed Company Limited announced its intention to provision for an impairment loss of approximately 690m yuan on its long-term equity investment in Dongxing Securities Co. This is expected to reduce the company's consolidated profit by roughly the same amount for the 2025 fiscal year. The final figures will be subject to audit and disclosed in the 2025 annual report.

The decision follows Dongxing Securities' announcement regarding a proposed share-swap merger with China International Capital Corporation Limited (CICC). CICC plans to acquire Dongxing Securities' A-share holders via a share swap, with a ratio of 1:0.4373 and a per-share swap price of 16.14 yuan. This move triggered Shandong Hi-Speed's assessment under accounting standards for long-term equity investments and asset impairment.

The proposed impairment is a preliminary estimate, and its finalization requires approval from Shandong Hi-Speed's board of directors and audit committee. Investors are cautioned to consider the estimated impact on the 2025 financial performance.