Dehua TB new materials reports significant Q3 asset impairment

Dehua TB New Decoration Material Company Limited announced a total asset impairment provision of 211.1202 million yuan for the first three quarters of 2025. This includes 94.9467 million yuan for bad debt, primarily due to challenging real estate market conditions and liquidity issues affecting its subsidiary Qingdao Yufeng Hantang Wood Industry Co., Ltd. Additionally, goodwill impairment related to the acquisition of Qingdao Yufeng Hantang Wood Industry accounted for 100.1877 million yuan of the total.

The impairment is expected to reduce the company's Q1-Q3 2025 consolidated profit by 126.3220 million yuan. Despite these provisions, the company's net profit attributable to shareholders increased by 30.44% year-on-year for the first three quarters, partly offset by the goodwill impairment. This profit increase was mainly driven by a fair value change gain of 272.7810 million yuan from its associate company, Hangao Group Co., Ltd., which listed in July 2025.

The board of directors approved these provisions, ensuring compliance with accounting standards and reflecting a prudent approach to asset valuation. The company also updated several corporate governance policies, including those related to investor relations, internal information management, and information disclosure.