Han's Laser adjusts credit loss estimates, boosts profit outlook

Han's Laser Technology Industry Group, in a recent announcement on December 2, 2025, detailed a change in accounting estimates for expected credit losses on receivables, effective October 1, 2025. This change, approved by the board of directors on November 28, 2025, aims to better reflect credit risk, financial position, and operating results by adjusting loss rates for specific customer segments, including listed companies and Global 500 firms.

The revised estimates introduce differentiated loss rates for various receivable categories and aging periods. For instance, expected credit loss rates for receivables from listed companies and Global 500 customers will be significantly lower, such as 1.50% for receivables less than one year old, compared to 3.00% previously. This adjustment, based on a comprehensive assessment of receivable composition and historical credit loss experience, is projected to increase the company’s total profit by approximately yuan 110m for the period of October-December 2025.

The accounting estimate change will be applied prospectively and will not impact financial statements for periods prior to October 1, 2025. The board of directors also approved an internal management system to standardize procedures for sensitive information disclosure.