Skyworth Digital details significant RMB 11.4bn asset impairment

Skyworth Digital reported a total provision for various asset impairments of RMB 12,685.77 million from January to November 2025. During the same period, the company recovered or reversed RMB 1,246.90 million in asset impairment provisions, and wrote off or cancelled RMB 7,106.70 million. These provisions, recoveries, and write-offs collectively amounted to RMB 11,438.87 million, which will reduce the total profit for the period by the same amount.

The asset impairment provisions were primarily driven by a RMB 3,183.89 million provision for fixed asset impairment and a RMB 7,804.31 million provision for inventory depreciation from January to November 2025. Other significant provisions included RMB 38.52 million for accounts receivable impairment and a RMB 1,346.90 million provision for goodwill impairment, which remained unchanged.

The company's board of directors' audit committee has deemed these provisions reasonable, aligning with accounting standards and internal control policies. The move is expected to enhance the company's risk prevention capabilities and accurately reflect its financial condition as of November 30, 2025.