Glodon records significant asset impairment provisions, impacting profit

Glodon Technology Co., Ltd. (SZSE:002410) reported total credit and asset impairment provisions of 34,943,834.86 yuan for the first three quarters of 2025. This adjustment, made in accordance with accounting standards and based on a cautious approach, will reduce the company's total profit and owners' equity by the same amount for the period ending September 30, 2025. The provisions include 19,434,510.37 yuan for accounts receivable, 4,178.07 yuan for notes receivable, 339,540.92 yuan for other receivables, 11,576,272.99 yuan for loans and advances, and 3,937,313.10 yuan for long-term equity investments.

Additionally, the company reversed inventory impairment losses of 302,301.70 yuan and contract asset impairment losses of 45,678.89 yuan during the same period. These adjustments are reflected in Glodon’s Q3 2025 financial report. The report highlights a 3.96% increase in operating revenue for the nine months ended September 30, 2025, reaching 4,269,772,265.53 yuan, while net profit attributable to shareholders increased by 45.90% to 311,135,650.79 yuan.

The company's total assets decreased by 6.12% to 9,604,854,601.94 yuan as of September 30, 2025, compared to the end of the previous year. The significant impairment provisions for credit losses and long-term equity investments were primary factors contributing to the reduced profit and owners' equity, aiming to accurately reflect Glodon's financial health.