Shennan Circuits reports asset impairment while revenue and profit grow

Shennan Circuits announced a provision for asset impairment totalling 20,357.05 million yuan for the first half of 2025, including 5,385.09 million yuan for accounts receivable, 13,351.34 million yuan for inventory, and 1,620.62 million yuan for fixed assets. This impairment is expected to reduce the company's total profit by approximately 20,357.05 million yuan for the period of January 1 to June 30, 2025. The company emphasizes that these provisions accurately reflect its asset condition and operating results.

Concurrently, the company also disclosed strong operating results, with total revenue reaching 104.53 million yuan, a 25.63% increase year-on-year, and net profit attributable to shareholders of 13.60 million yuan, a 37.75% increase year-on-year for the first half of 2025. Furthermore, Shennan Circuits approved a guarantee of 20,000 million yuan for its wholly-owned subsidiary, Tarx Circuit, for bank loans, effective for one year from August 27, 2025. This guarantee, along with existing guarantees, brings the total guaranteed amount for holding subsidiaries to 50.50 billion yuan, representing 13.12% of the company's audited net assets for 2024.

The company also reported on the use of idle raised funds for cash management, with all products maturing and redeemed by June 30, 2025, yielding a cumulative income of 51.63 million yuan. Additionally, a capital reserve transfer plan from May 29, 2025, increased the total share capital from 512,877,535 shares to 666,740,795 shares by transferring three new shares for every ten shares.