Zhejiang Sunflower reports asset impairment, governance reforms amid financial declines

Zhejiang Sunflower Great Health Liability Company reported a total asset impairment provision of CNY 1,924,103.57 for the first half of 2025. This includes CNY 1,825,017.95 for asset impairment losses, specifically inventory write-downs, and CNY 99,085.62 for credit impairment losses, primarily doubtful accounts. The company expects this provision to reduce its consolidated profit for the period by the same amount, stating the action adheres to accounting standards and reflects a prudent approach to financial health.

Concurrently, the company's Sixth Board of Directors approved revisions to 18 governance documents, including its Articles of Association, Shareholder Meeting Rules, and Internal Control Management System. These revisions, slated for shareholder approval on September 15, 2025, aim to align with updated laws and regulations. Key changes include clarifying the legal representative's role, refining board and shareholder meeting procedures, and strengthening provisions for related-party transactions and asset management.

Despite these provisions, Zhejiang Sunflower's total assets for the first half of 2025 were CNY 981,809,554.42, a slight decrease from the prior year-end. Operating income declined by 8.33% to CNY 144,420,083.69, while net profit attributable to shareholders decreased by 35.68% to CNY 1,160,651.10.