Tianma Microelectronics takes $53.5m hit on asset impairments

Tianma Microelectronics (SZSE:000050) announced a significant financial adjustment stemming from its 2024 asset reviews, revealing a provision for impairment losses totaling ¥534.65 million (approximately $53.5 million USD). The decision, based on evaluations ending December 31, 2024, reflects write-downs across several asset categories, including credit losses of ¥23.99 million, primarily affecting accounts receivable, and asset impairments of ¥510.66 million. The most substantial asset impairment comes from inventory, accounting for ¥411.89 million, followed by fixed assets at ¥122.76 million. These write-downs are due to factors like diminished realizable value and obsolescence. The firm attributes the move to alignment with accounting standards and accurate portrayal of its financial standing. In response to these losses, the company will not distribute profits and will retain earnings to protect shareholders.