安道麦B：关于计提资产减值准备的公告(英文版)

ADAMALtd.AssetImpairmentAnnouncement

InaccordancewiththeAccountingStandardsforBusinessEnterprises,ADAMALtd.(hereinafterreferredtoasthe“Company”),isexpectedtorecordatotalofRMB159million($23million)forthefirsthalfof2026inprovisionsforassetandcreditlossimpairments.Theseprovisionsaremainlyrelatedtoone-timeimpairmentsofsomefixedassets,impairmentofinventoriesandcreditlossimpairmentofaccountsreceivablesmadeduringtheordinarycourseoftheCompany’sbusiness,asprovidedherein.OverviewandFinancialImpactofProvisionfortheAssetImpairmentsDuringthefirsthalfof2026,theCompanyisexpectedtorecordprovisionsforassetandcreditlossimpairmentsbasedon"AccountingStandardsforBusinessEnterprises"andtheCompany’sownapplicableaccountingpolicies.Theseprovisions,chargedtothetotalprofitsoftheCompanyduringthefirsthalfof2026,areexpectedamountingtoRMB159million($23million).Furtherdetailsoftheimpairmentsareasfollows:

Unit:‘000RMB

TheCompanyandallmembersofitsBoardofDirectorsconfirmthatalltheinformationdisclosedhereinistrue,accurate,andcompletewithnofalseormisleadingstatementormaterialomission.Item

BasisandExplanationforImpairmentofFixedAssetsTheCompanyassessateachbalancesheetdatewhetherthereareanyindicationsthatthefixedassetsmaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets(recoverableamountisthehigherbetweentheassets’fairvaluelesscoststosellandthepresentvalueofthefuturecashflowestimatedtobederivedfromtheasset).Iftherecoverableamountisbelowtheassets’netcostrecordedinthebalancesheet,aprovisionforimpairmentis

made.Duringthefirsthalfof2026,theCompanyisexpectedtoprovideimpairmentsofaroundRMB74million($11million)tofixedassetswithloweroperationalefficiency.ThisisduetotheCompany’sstrategicdirectiontoenhanceoperationalefficiencyandfocusonhigh-performingfacilities.Theimpairmentismadebasedontheevaluationoftheassets’recoverableamount.BasisandExplanationforImpairmentofInventoriesInventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthenetrealizablevalueisbelowthecostofinventories,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.InventoryimpairmentsareexpectedtoreachapproximatelyRMB55million($8million)inthefirsthalfof2026.ThereasonsoftheimpairmentsweremainlyduetoinventorymanagementaspectsduringtheordinarycourseoftheCompany’sbusiness.BasisandExplanationforCreditImpairmentLossesTheCompanyrecognizesanimpairmentprovisionwhichreflectsitsassessmentregardingthecreditriskofaccountsandotherreceivablesonalifetimeexpectedcreditlossbasis.Theexaminationforexpectedcreditlossesisperformedusingamodelincludingaginganalysisandhistoricallossexperience,andisadjustedtakingintoaccountobservablefactorsreflectingcurrentandexpectedfutureeconomicconditions.Ifthereisobjectiveevidenceofarecoveryinthevalueofreceivableswhichcanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognized,thepreviouslyrecognizedimpairmentlossisreversed.ThecreditimpairmentlossesprovidedforthefirsthalfoftheyearareexpectedtobearoundRMB28million($4million).Theexpectedcreditlossesaremainlyprovidedduringthecourseofordinarymanagementofaccountsreceivablebasedontheevaluationofthecurrentandfuturefinancialpositionofcustomersacrossdifferentregionalmarkets.BasisandExplanationforImpairmentofConstructioninProgressTheCompanyassessateachbalancesheetdatewhetherthereareanyindicationsthattheconstructioninprogressmaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets(recoverableamountisthehigherbetweentheassets’fairvaluelesscoststosellandthepresentvalueofthefuturecashflowestimatedtobederivedfromtheasset).Iftherecoverableamountisbelowtheassets’netcostrecordedinthebalancesheet,aprovisionforimpairmentismade.Inthefirsthalfof2026,theCompanyisexpectedtomakeimpairmentsofaroundRMB

1.5million($0.2million)onconstructioninprogress,whichisimmaterialtotheoverallfinancialstatements.ExplanationontheReasonablenessofAssetImpairmentsTheaforementionedprovisionsweremainlyduetoimpairmentsofsomefixedassets,inventoriesandcreditlossimpairmentsofaccountsreceivablesmadeduringtheordinarycourseoftheCompany’sbusiness.Basedonthecurrentstatusoftheassets,theseimpairmentsservetocorrectlypresentthebalancesheetoftheCompany,trulyandfairlyreflectsthecompany'sfinancialsituation,assetvalueandoperatingresults,whilemeetingrequirementsofaccountingstandardsandrelatedpolicies.OtherExplanationsTheexpectedprovisionsforassetimpairmentistheresultofthepreliminarycalculationofthefinancialdepartmentoftheCompany.Investorsarekindlyremindedtopayattentiontoinvestmentrisks.ApprovalProcessfortheProvisionofAssetImpairmentsAccordingtotheCompany’sinternalapprovalprocedures,theabove-mentionedmajorimpairmentoffixedassetswasapprovedbytheCompany’sglobalseniormanagement,withthecalculationoftherecoverableamountoftheassetsperformedbythefinanceteamoftherelatedsubsidiariesandreviewdonebytheglobalfinanceteam.Otherimpairmentswereidentified,calculatedandapprovedlocallybyrespectivesubsidiariesandreviewedbytherelevantglobalteams.

It’sherebyannounced.

BoardofDirectors

ADAMALTD.July15,2026