North Industries Group Red Arrow takes significant impairment charges

North Industries Group Red Arrow announced that its board of directors approved the provision for credit and asset impairment losses for January-September 2025. These provisions, totaling CNY 5,755.34 million, were made based on accounting standards and company policy to accurately reflect the asset and financial condition as of September 30, 2025.

The total impairment includes CNY 2,546.67 million for expected credit losses on accounts receivable and contract assets, and CNY 8,302.01 million for inventory depreciation. After accounting for income tax effects, these provisions will reduce the company's net profit attributable to listed company shareholders by CNY 6,117.38 million and decrease shareholders' equity by the same amount for the first nine months of 2025.

The audit committee confirmed that the impairment provisions comply with accounting standards and company policies, accurately reflecting the financial status and operating results. The board also approved the company's third-quarter report for 2025.