Hainan Shennong Technology updates accounting estimates, appoints new auditor

Hainan Shennong Technology announced a change in its accounting estimates for expected credit losses on receivables, effective December 1, 2025. This revision, moving from a migration rate method to an aging analysis method for calculating bad debt provisions, aims to more objectively reflect the company's financial health and operational performance. The change is driven by significant shifts in asset basis and credit risk characteristics, including a focus on core business and improved customer credit quality, leading to a projected increase in net profit of yuan 1,766.21m.

Concurrently, the company proposes to change its auditor from Sichuan Huaxin (Group) Certified Public Accountants to Lihanda Certified Public Accountants (Special General Partnership) for the 2025 fiscal year. This change, scheduled for shareholder approval, is attributed to the company's business development needs and Lihanda's extensive experience in auditing listed companies. Both the accounting estimate change and the auditor appointment underscore Hainan Shennong Technology's efforts to align its financial practices with industry standards and enhance the reliability of its financial disclosures.