2.Personnel information
The chief partner is Mr. Xie Zemin. As of December 31, 2025, Dasin had a total of 3,914 employees, including 182 partners and 1,053 certified public accountants. Among CPAs, more than 500 have signed securities service business audit reports.
3.Business information
Business revenue in 2024 is 1.575 billion yuan, providing services to more than 10,000 companies. Among the business income, the audit business income is 1.378 billion yuan and the securities business income is 405 million yuan. There are 221 audit clients for the annual reports of listed companies in 2024 (including H shares), with average assets of 19.544 billion yuan and total fees of 282 million yuan. Mainly distributed in the manufacturing industry, information transmission, software and information technology service industry, electricity, heat, gas and water production and supply industry, scientific research and technical service industry, water conservancy, environment and public facilities management industry. The company has 7 audit clients of listed companies in the same industry.
4. Investor protection capabilities
The sum of the cumulative compensation limit of occupational insurance and the accrued occupational risk fund exceeds 200 million yuan. The accrual of the occupational risk fund and the purchase of occupational insurance comply with relevant regulations.
5. Integrity record
In the past three years, he has received 0 criminal penalties, 10 administrative penalties, 16 administrative supervision measures, and 18 self-regulatory supervision measures and disciplinary sanctions due to his professional conduct. In the past three years, 67 employees have received 0 criminal penalties, 25 administrative penalties, 34 administrative supervision measures, and 46 self-regulatory measures and disciplinary sanctions due to their professional behavior in the past three years.
(2) Project information
1.Basic information
Project partner to be signed: Shi Chenqi
Mr. Shi Chenqi, partner, holds the Chinese Certified Public Accountant qualification. He became a certified public accountant in 2010, started auditing listed companies in 2013, and started practicing in our firm in 2013. Signed or reviewed the audit reports of 5 listed companies in the past three years.
Certified public accountant to be signed: Liu Yong
Mr. Liu Yong, partner, holds the Chinese Certified Public Accountant qualification. He became a certified public accountant in 2008. He began to audit listed companies in 2010 and started practicing in the firm in 2013. Signed or reviewed the audit reports of 3 listed companies in the past three years.
Certified Public Accountant to be signed: Tian Yuhan
Ms. Tian Yuhan has the qualification of a Chinese certified public accountant. She became a certified public accountant in 2022. She began to audit listed companies in 2020 and began practicing in the firm in 2024. Signed or reviewed 0 audit reports of listed companies in the past three years.
Project quality reviewer: Zhu Xueliang
Mr. Zhu Xueliang holds the qualifications of a certified public accountant and an asset appraiser. He became a certified public accountant in 2009. He began to review the audit quality of listed companies and quoted companies in 2014. He started practicing in the firm in 2022 and has signed or reviewed the audit reports of more than 5 listed companies in the past three years.
2. Integrity record
In the past three years, the partners of the projects to be signed, the signing certified public accountants and the quality review personnel have not been subject to criminal penalties for professional conduct, administrative penalties, supervisory and management measures from the China Securities Regulatory Commission, dispatched agencies, and industry authorities, or self-regulatory measures and disciplinary sanctions from self-regulatory organizations such as stock exchanges and industry associations.
3. Independence
The project partners to be signed, the signing certified public accountants and the quality review personnel do not violate the independence requirements of the "Chinese Code of Professional Ethics for Certified Public Accountants", do not hold or trade company stocks, and do not have other economic interests that affect independence. Regular rotation complies with regulations.
4. Audit charges
Dasin's audit service fees are determined through public bidding based on the audit workload and the principles of fairness and reasonableness. The company plans to pay RMB 3.09 million in audit fees to Daxin for the 2026 financial statement audit project (including RMB 520,000 in internal control audit fees). In 2025, the cost of financial statement audit project services provided by Daxin Accounting Firm (Special General Partnership) is RMB 3.09 million (of which the internal control audit fee is RMB 520,000).
2. Procedures to be followed by the accounting firm to be re-appointed
(1) Review opinions of the Audit and Risk Control Committee
The Audit and Risk Control Committee believes that Daxin Accounting Firm (Special General Partnership) has extensive experience in auditing listed companies and has the professional qualifications and professional competence to provide audit services to listed companies. When serving as the company's 2025 annual financial report and internal control auditor, Daxin Accounting Firm (Special General Partnership) carried out its work in strict accordance with relevant national laws and regulations, abided by professional ethics and the principles of independence, objectivity and fairness, and performed audit work in strict accordance with the provisions of the auditing standards. The professional competence, investor protection capabilities, independence and integrity of Dasin Accounting Firm (Special General Partnership) meet relevant requirements. The Audit and Risk Control Committee agreed to re-appoint Dasin Accounting Firm (Special General Partnership) as the company's 2026 financial report and internal control auditor, and submitted the proposal to the fifth meeting of the company's tenth board of directors for review.
(2) Review and voting of the board of directors
The fifth meeting of the company's tenth board of directors reviewed and approved the "Proposal on the continued appointment of Daxin Accounting Firm (Special General Partnership) as the company's external auditor and submission to the shareholders' meeting to authorize the appointment." The board of directors believes that the company's continued appointment of Daxin Accounting Firm (Special General Partnership) as the company's 2026 audit agency to provide the company with accounting statement audit and other related consulting services is in line with the relevant provisions of the "Company Law" and the "Articles of Association", is in line with the company's actual situation and long-term development needs, is conducive to safeguarding the long-term interests of all shareholders of the company now and in the future, and will not harm the interests of shareholders. Agree to submit the proposal to the 2025 Annual Shareholders Meeting for review.
(3) The renewal of the accounting firm needs to be submitted to the company’s 2025 annual shareholders’ meeting for review and will take effect from the date of review and approval by the company’s shareholders’ meeting.
Announcement is hereby made.
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Board of Directors
March 25, 2026
Securities code: 600874 Securities abbreviation: Entrepreneurship and Environmental Protection Announcement Number: Lin 2026-007
Bond code: 243568 Bond abbreviation: GK Jinchuang 01
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Regarding the deposit of funds raised by the company in 2025,
Special reports on management and actual usage
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
1. Basic information on raising funds
(1) The actual amount of funds raised after deducting issuance fees and the time of fund arrival
According to the China Securities Regulatory Commission's Document No. 1122 "Approval of the Non-public Issuance of Stocks by Tianjin Chuangye Environmental Protection Group Co., Ltd.", Tianjin Chuangye Environmental Protection Group Co., Ltd. (hereinafter referred to as the "Company") non-publicly issued 143,189,655.00 RMB ordinary shares to specific investors in September 2022, with an issuance price of RMB 5.80 per share. , the total amount of funds raised was RMB 830,499,999.00. After deducting the issuance fee of RMB 19,743,434.08, the net amount of funds raised totaled RMB 810,756,564.92. (hereinafter referred to as the "raised funds"), the above raised funds have been verified by PricewaterhouseCoopers Zhongtian Accounting Firm (Special General Partnership) and issued a capital verification report No. 0816 of PricewaterhouseCoopers Zhongtian Yanzi (2022).
(2) Amount used in previous years, amount used this year and current balance
As of December 31, 2025, the company had used raised funds of RMB 75,475,863.23 during the reporting period, and the total amount of raised funds used was RMB 677,873,793.63. The details are as follows:
Basic information on raised funds
Unit: 10,000 yuan Currency: RMB
2. Management of raised funds
(1) Management of raised funds
In order to standardize the management and use of raised funds and protect the rights and interests of investors, the company has formulated the "Tianjin Chuangye Environmental Protection Group Co., Ltd. Raised Funds Management System" in accordance with the relevant regulations promulgated by the China Securities Regulatory Commission and the Shanghai Stock Exchange and based on the company's actual situation.
At the same time, the company and the sponsor CITIC Securities Co., Ltd., Tianjin Hebei Branch of China Construction Bank Co., Ltd., and Tianjin Nan Branch of Agricultural Bank of China Co., Ltd. respectively signed the "Tripartite Supervision Agreement for the Special Account Deposit of Raised Funds" on October 18, 2022. The company and its subsidiaries Sihonghu Tianchuang Environmental Protection Co., Ltd., Jieshou Chuangye Water Co., Ltd. and Tianjin Reclaimed Water Co., Ltd. signed the "Four-party Supervision Agreement for the Special Account Deposit of Raised Funds" with the sponsor institution CITIC Securities Co., Ltd., China CITIC Bank Co., Ltd. Tianjin Branch, and China Merchants Bank Co., Ltd. Tianjin Branch respectively.
As mentioned in this report IV, the company changed the investment direction of part of the raised funds and changed 103,000,000.00 yuan to implement the "Karamay City Southern Suburb Sewage Treatment Plant Franchise Project." On November 17, 2023, the company and its subsidiary Karamay Chuanghuan Water Co., Ltd. signed the "Four-Party Supervision Agreement for the Special Account Storage of Raised Funds" with the sponsoring institution CITIC Securities Co., Ltd. and CITIC Bank Co., Ltd. Tianjin Branch.
During the reporting period, some of the company's investment projects changed. The 53,000,000.00 yuan raised from the "First Batch Project of Reclaimed Water Pipe Network Connection Project in Main Urban Areas of Tianjin" was changed to the "Chibi Lushui Industrial Park Sewage Treatment Plant and Supporting Pipe Network Project Franchise TOT Project". On February 24, 2025, the company and its subsidiary Chibi Chuanghuan Water Co., Ltd. signed the "Four-Party Supervision Agreement for the Special Account Storage of Raised Funds" with the sponsor CITIC Securities Co., Ltd. and CITIC Bank Co., Ltd. Tianjin Branch. As mentioned in this report IV, on December 16, 2025, after review by the company's shareholders' meeting, it was agreed that the company would terminate the implementation of the "Chibi City Lushui Industrial Park Sewage Treatment Plant and Supporting Pipe Network Franchise TOT Project" fundraising project. On December 26, 2025, after deliberation by the company's board of directors and the audit and risk control committee, it was agreed to adjust the 53,000,000.00 yuan originally planned to be invested in the above-mentioned "Chibi City Lushui Industrial Park Sewage Treatment Plant and Supporting Pipeline Network Franchise TOT Project" to the "Karamay City Southern Suburb Sewage Treatment Plant Franchise Project."
There are no major differences in the contents of the above-signed "Three-Party Supervision Agreement for the Special Account Storage of Raised Funds" and the "Four-Party Supervision Agreement for the Special Account Deposit of Raised Funds" and the Shanghai Stock Exchange's "Three-Party Supervision Agreement for the Special Account Storage of Raised Funds (Template)".
The Company strictly complies with the provisions and requirements of the "Raised Funds Management System of Tianjin Chuangye Environmental Protection Group Co., Ltd.", the "Three-Party Supervision Agreement for the Special Account Storage of Raised Funds" and the "Four-Party Supervision Agreement for the Special Account Storage of Raised Funds", and has effectively supervised and managed the storage and use of raised funds.
(2) Storage status of raised funds in special accounts
The company implements special account storage for raised funds. As of December 31, 2025, the storage status of raised funds in various bank accounts is as follows:
Raised funds storage status table
Unit: 10,000 yuan Currency: RMB
Note: On December 16, 2025, after review by the company’s second extraordinary shareholders’ meeting in 2025, it was agreed that the franchise TOT project of the sewage treatment plant and supporting pipe network project in Chibi City Lushui Industrial Park should be terminated. The fund-raising account for this project has been canceled before December 31, 2025.
3. Actual use of funds raised this year
(1) Usage of raised funds for investment projects
During the reporting period, please see Appendix 1 of this report for a detailed table on the use of raised funds.
(2) Advance investment and replacement of fundraising projects
On December 21, 2022, the seventh meeting of the ninth session of the Board of Directors and the third meeting of the ninth session of the Supervisory Board of the Company reviewed and approved the "Proposal on the Use of Raised Funds to Replace Self-raised Funds Already Invested in Raised Investment Projects", and agreed that the company would use RMB 109,382,040.38 of raised funds to replace self-raised funds previously invested in raised funds investment projects. PricewaterhouseCoopers Zhongtian Certified Public Accountants LLP (Special General Partnership) has verified the fact that the main subsidiary company that implements the raised investment project has pre-invested raised funds into the investment project with self-raised funds, and issued PricewaterhouseCoopers Zhongtian Special Examination Zi (2022) No. 5703 assurance report.
Raised funds replacement advance investment table
Unit: 10,000 yuan Currency: RMB
(3) Temporarily supplementing working capital with idle raised funds
During the reporting period, the Company did not use idle raised funds to temporarily replenish working capital.
(4) Cash management of idle raised funds and investment in related products
During the reporting period, the Company did not invest in related products with idle raised funds.
(5) Use of excess raised funds to permanently supplement working capital or return bank loans
During the reporting period, the Company did not use excess raised funds to permanently replenish working capital or repay bank loans.
(6) The excess raised funds are used for projects under construction and new projects (including acquisition of assets, etc.) or the repurchase and cancellation of the company’s shares
During the reporting period, the Company did not use excess raised funds for projects under construction or new projects (including acquisition of assets, etc.) or to repurchase and cancel the Company's shares.
(7) Usage of surplus raised funds
During the reporting period, the Company did not use any surplus funds from raised investment projects for other raised investment projects or non-raised investment projects.
(8) Other uses of raised funds
The company's 64th meeting of the ninth board of directors held on August 22, 2025 and the audit and risk control committee of the sixth board of directors in 2025 reviewed and approved the "Proposal on the Termination of Some Fund-raising Investment Projects and the Extension of Some Fund-raising Investment Projects", agreeing that the company will " The date when the raised funds for the "Karamay City Southern Suburb Sewage Treatment Plant Franchise Project" reaches its intended usable state has been adjusted from August 2025 to June 2026. Taking into account the project settlement progress, the project is expected to use up the raised funds in August 2026. This delay is mainly due to the delay of the drainage pipeline construction sub-project of the project. On the one hand, it is due to the long pre-tendering, planning, and construction approval procedures for the drainage pipeline construction project, which results in a late start of the project; on the other hand, it is affected by the local road underground conditions, there are many underground pipelines in the city, and the geological conditions are complex. At the same time, due to local climate conditions, snowfall occurs in early November every year, and the average temperature is below zero by the end of March. This period belongs to the winter break period of construction, resulting in relatively slow progress in construction.
4. Changes in the use of funds for investment projects
(1) Changes in investment projects with raised funds
Some of the company's investment projects were changed in 2023, and RMB 103,000,000.00 of the funds raised from the investment project "Honghu City Township Sewage Treatment Plant New Construction and Upgrading and Supporting Pipe Network (Phase II) PPP Project" was changed to the "Karamay City Southern Suburb Sewage Treatment Plant Franchise Project."
During the reporting period, some of the company's investment projects changed. The company's 48th meeting of the ninth board of directors and the 19th meeting of the ninth board of supervisors held on December 17, 2024, and the first extraordinary shareholders' meeting of 2025 held on January 14, 2025, have reviewed and approved the "About Changing the Use of Part of the Raised Funds" "Proposal", agreeing that the company will change the 53,000,000.00 yuan raised from the "First Batch Project of Reclaimed Water Pipe Network Connection Project in the Main Urban District of Tianjin" to be used for the "Chibi City Lushui Industrial Park Sewage Treatment Plant and Supporting Pipe Network Project Franchise TOT Project".
During the reporting period, the Company's 64th meeting of the ninth board of directors held on August 22, 2025, the audit and risk control committee of the sixth board of directors in 2025, and the second extraordinary shareholders' meeting of 2025 held on December 16, 2025 reviewed and approved the "Proposal on the Termination of Some Fund-raising Projects and the Extension of Some Fund-raising Projects", agreeing to the company's termination of the implementation of the "Chibi City Lushui Industrial Park Sewage Treatment Plant and Supporting Pipe Network Franchise TOT Project" fund-raising project.
The company's 73rd meeting of the ninth board of directors held on December 26, 2025 and the audit and risk control committee of the eighth board of directors in 2025 reviewed and approved the "Proposal on Adjusting the Amount of Raised Funds to be Invested in Raised Investment Projects", and the 53,000,000.00 yuan originally planned to be invested in the above-mentioned "Chibi City Lushui Industrial Park Sewage Treatment Plant and Supporting Pipeline Network Franchise TOT Project" was adjusted to the "Karamay City Southern Suburb Sewage Treatment Plant Franchise Project".
For details on the above-mentioned changes in investment projects with raised funds, please refer to Appendix 2: Changes in Investment Projects with Raised Funds. (2) Investment projects with raised funds have been transferred or replaced externally
During the reporting period, the Company's investment projects with raised funds were not transferred or replaced externally.
5. Problems in the use and disclosure of raised funds
The company's disclosure of the use of raised funds is consistent with the actual use. There is no failure to disclose timely, true, accurate and complete disclosures, and there is no illegal use of raised funds.
6. Conclusive opinions of the accounting firm’s assurance report on the deposit and use of the company’s annual raised funds
Daxin Accounting Firm believes that the special report on the storage, management and actual use of raised funds prepared by the company complies with relevant regulations and fairly reflects the storage, management and actual use of raised funds in 2025 in all major aspects.
7. The concluding opinions of the special verification report issued by the sponsor or independent financial consultant on the deposit and use of the company's annual raised funds.
After verification, CITIC Securities believes that the deposit and use of funds raised by Chuangye Environmental Protection's 2021 non-public offering in 2025 complies with the "Measures for the Administration of Securities Issuance and Listing Sponsorship Business", "Supervisory Rules for Funds Raised by Listed Companies" and "Shanghai Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1" "Standardized Operation" and other relevant regulations and the "Tianjin Chuangye Environmental Protection Group Co., Ltd. Raised Funds Management System" stipulate that the raised funds are deposited in a special account and used specifically. There is no disguised change in the use of raised funds or damage to the interests of shareholders, and there is no illegal use of raised funds.
8. If the company has raised more than two times and used the raised funds separately in the same year, it should be explained separately in the special report.
Not involved
Announcement is hereby made.
Attachment 1: Comparison table of usage of raised funds
Appendix 2: Changes in investment projects with raised funds
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Board of Directors
March 25, 2026
Schedule 1:
Comparison table of usage of raised funds
Unit: 10,000 yuan Currency: RMB
Note 1: The “total amount of raised funds invested this year” includes the “amount invested this year” after the raised funds are received and the actual amount of advance investment that has been replaced.
Note 2: The "committed investment amount as of the end of the period" is determined based on the latest disclosed investment plan for raised funds.
Note 3: The calculation caliber and calculation method of "benefits achieved during the year" should be consistent with the calculation caliber and calculation method of promised benefits.
Note 4: The nature of the investment projects includes: "production and construction", "R&D projects", "operation management", "investment and mergers and acquisitions", "replenishment", "loan repayment", "repurchase of company shares", "others"; the type of "others" should be explained in an annotation.
Schedule 2:
Changes to the investment project status of raised funds
Unit: 10,000 yuan Currency: RMB
Note: The calculation caliber and calculation method of "benefits achieved this year" should be consistent with the calculation caliber and calculation method of promised benefits.
Securities code: 600874 Securities abbreviation: Entrepreneurship and Environmental Protection Announcement Number: Lin 2026-007
Bond code: 243568 Bond abbreviation: GK Jinchuang 01
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Announcement of 2025 Annual Profit Distribution Plan
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content reminder:
Distribution ratio per share: cash dividend of 0.209 yuan per share (tax included)
This profit distribution is based on the total share capital registered on the equity registration date for the implementation of equity distribution. The specific date will be clarified in the equity distribution implementation announcement. If the company's total share capital changes before the equity registration date for equity distribution, it is planned to maintain the distribution ratio per share unchanged, adjust the total distribution amount accordingly, and will separately announce the specific adjustments.
It does not touch the circumstances in which other risk warnings may be imposed as stipulated in Article 9.8.1, paragraph 1, item (8) of the "Stock Listing Rules of the Shanghai Stock Exchange (revised in April 2025)" (hereinafter referred to as the "Stock Listing Rules").
1. Contents of profit distribution plan
(1) Specific contents of the profit distribution plan
As audited by Daxin Accounting Firm (Special General Partnership), the company's net profit attributable to shareholders of the parent company in 2025 was RMB 862,357,236.56, minus the statutory surplus reserve fund of RMB 88,64 set aside in accordance with the relevant provisions of the Company Law of the People's Republic of China and the Company's Articles of Association. 9,352.90 yuan, plus the undistributed profit of 6,133,464,906.76 yuan at the beginning of the year, minus the 2024 cash dividend of 266,971,074.45 yuan distributed in 2025, the actual profit available for distribution to shareholders this year is RMB 6,640,201,715.97 yuan.
Based on the company's production and operation conditions and capital status, in order to safeguard the interests of investors and actively reward investors, according to the company's profit distribution policy, it is planned to distribute a cash dividend of RMB 2.09 (tax included) to all shareholders for every 10 shares in 2025, totaling RMB 328,217,379.77. The amount of cash dividends will account for 38.06% of the net profit attributable to shareholders of the parent company in 2025.
If the company's total share capital changes between the date of disclosure of this announcement and the equity registration date for the implementation of equity distribution, the company intends to maintain the distribution ratio per share unchanged and adjust the total distribution amount accordingly. If the total share capital changes subsequently, specific adjustments will be announced separately.
This profit distribution plan still needs to be submitted to the company's 2025 annual shareholders' meeting for review.
(2) Whether other risk warning situations may be involved
The company's cumulative cash dividends in the past three fiscal years totaled 855,877,856.33 yuan, accounting for 95.44% of the average annual net profit in the past three fiscal years. None of the above indicators touch the situations where other risk warnings may be issued as stipulated in Item (8) of Article 9.8.1, Paragraph 1 of the Stock Listing Rules. The specific indicators are explained as follows:
2. Decision-making procedures implemented by the company
The fifth meeting of the company's 10th board of directors was held on March 25, 2026 through on-site and communication voting. There were 9 directors who were supposed to attend the meeting and 9 directors actually attended the meeting. The meeting was chaired by Chairman Mr. Tang Fusheng. The company's senior managers attended the meeting. The procedures for convening this board of directors complied with the relevant provisions of the Company Law and the Articles of Association. The meeting reviewed and approved the "Proposal on Review of the Profit Distribution Plan for 2025".
The voting results for this motion are as follows: 9 votes in favor, 0 votes against, and 0 abstentions. This motion was passed.
This proposal needs to be submitted to the company's 2025 annual shareholders' meeting for review.
3. Related risk warnings
(1) This profit distribution will not have a substantial impact on the net asset rights and shareholding ratios enjoyed by the company’s shareholders. Investors are requested to make rational judgments and pay attention to relevant investment risks.
(2) Before the disclosure of this profit distribution plan, the company strictly controlled the scope of insiders of insider information, and fulfilled the notification obligations of confidentiality and strictly prohibiting insider trading to relevant insiders. This profit distribution plan still needs to be submitted to the company's 2025 annual shareholders' meeting for review and approval. Investors are advised to pay attention to investment risks.
Announcement is hereby made.
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Board of Directors
March 25, 2026
Securities code: 600874 Securities abbreviation: Entrepreneurship and Environmental Protection Announcement Number: Lin 2026-008
Bond code: 243568 Bond abbreviation: GK Jinchuang 01
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Announcement on the proposed provision for asset impairment
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Tianjin Chuangye Environmental Protection Group Co., Ltd. (hereinafter referred to as the "Company" or the "Company") held the fifth meeting of the 10th Board of Directors on March 25, 2026, and reviewed and approved the "Proposal on Proposal for Provision for Asset Impairment". The specific information is hereby announced as follows:
1. The current provision for asset impairment
In order to objectively and fairly reflect the company's financial status and operating results in 2025, in accordance with the relevant provisions of the "Accounting Standards for Business Enterprises" and the company's accounting policies, the company conducted an impairment test on the relevant assets within the scope of the consolidated statements as of December 31, 2025. According to the impairment test results, the company plans to make an asset impairment provision of RMB 125.8011 million in 2025 and reverse the impairment provision of RMB 66.4163 million. The main items of impairment provision this time are accounts receivable, other receivables, and long-term receivables. The specific situation is as follows:
Based on expected credit losses, the company conducts impairment accounting on financial assets and contract assets measured at amortized cost and recognizes bad debt provisions. For bills receivable and accounts receivable resulting from daily operating activities such as selling products and providing services, loss provisions are measured based on expected credit losses throughout the entire duration, regardless of whether there is a significant financing component.
The company assesses expected credit losses on an individual basis for individual financial assets that are significant in amount and have significantly lower credit risk, as well as financial assets that have significantly increased credit risk or have been confirmed to have credit impairment since initial recognition. When a single financial asset cannot assess expected credit losses at a reasonable cost, the receivables are divided into several combinations based on the credit risk characteristics, and the expected credit losses are calculated on the basis of the combinations.
During the reporting period, the company conducted impairment testing on accounts receivable, other receivables and long-term receivables based on expected credit losses according to the above provision methods and planned to accrue credit impairment losses of RMB 125.8011 million.
2. The impact of this provision of asset impairment provisions on the company
The company's asset impairment provision of RMB 125.8011 million this time was directly included in the company's 2025 profit and loss, and the impact on the company's current profit and loss accounted for 13.73% of the absolute value of the audited net profit in the most recent fiscal year.
3. Decision-making process for accruing impairment provisions this time
The fifth meeting of the company's 10th board of directors was held on March 25, 2026 in a combination of on-site and video conference. 9 directors were supposed to attend the meeting, but 9 directors actually attended the meeting. The procedures for convening this board of directors complied with the relevant provisions of the Company Law and the Articles of Association. The meeting reviewed and approved the "Proposal on Proposed Provision for Asset Impairment".
The board of directors believes that the company's current provision for asset impairment is based on the actual situation of the company's assets and in accordance with the Accounting Standards for Business Enterprises. This current provision for asset impairment is based on the principle of accounting prudence. The basis for the impairment is sufficient and can objectively, truly and fairly reflect the company's financial status and asset value. It agrees with this current provision for asset impairment.
The voting results for this motion are as follows: 9 votes in favor, 0 votes against, and 0 abstentions. This motion was passed.
Announcement is hereby made.
Tianjin Chuangye Environmental Protection Group Co., Ltd.
Board of Directors
March 25, 2026
Company code: 600874 Company abbreviation: Entrepreneurship and Environmental Protection
