Securities code: 688052 Securities abbreviation: NOVOSENSE Announcement No.: 2025-003

Suzhou NOVOSENSE Microelectronics Co., Ltd

Announcement on the provision for impairment in 2024

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

1. Overview of the provision for impairment

In accordance with the relevant provisions of the Accounting Standards for Business Enterprises and the company's accounting policies, it is a true and fair reflection

The Company's financial position as at December 31, 2024 and the results of operations for the year 2024, the Company's financial position as at the end of the consolidated period

A comprehensive inventory of the relevant assets was carried out, and based on the principle of prudence, provision was made for the impairment of the relevant assets that are expected to have a greater possibility of impairment losses.

The details are as follows:

Unit: RMB 10,000 yuan

Serial No. Item Amount Incurred Remarks

1 Credit impairment loss 5.16 Provision for bad debts of notes receivable

2 Credit impairment loss 937.76 Provision for bad debts of accounts receivable

3 Credit impairment loss 418.66 Provision for bad debts of other receivables

4 Asset impairment loss 8,595.49 Provision for inventory decline

5 Asset impairment loss 294.43 Provision for impairment of long-term equity investment

Total 10,251.50

2. Specific description of the provision for impairment

(1) Credit impairment losses

According to the Accounting Standards for Business Enterprises and the Company's accounting policies, for receivables, the Company assesses the expected credit risk and measures the expected credit loss on the basis of a single financial instrument or a combination of financial instruments. Tested, 2024

The annual bills receivable, accounts receivable and other receivables added provisions for bad debts of 51,600 yuan, 9,377,600 yuan and 4,186,600 yuan respectively.

(2) Asset impairment losses

1. Provision for inventory decline

According to the Accounting Standards for Business Enterprises and the Company's accounting policies, the Company conducts impairment tests on inventory items at the balance sheet date, and at the end of the reporting period, inventories are measured according to the lower of cost and net realizable value, and provision for inventory decline is made according to the difference between the cost of a single inventory and the net realizable value. After testing, the company's new provision for inventory decline in 2024 will be 85.9549 million yuan.

2. Provision for impairment of long-term equity investments

If there is objective evidence that an investment in a subsidiary, associate or joint venture has been impaired at the balance sheet date, the recoverable amount of the long-term equity investment shall be determined on the basis of the higher of the fair value of the individual long-term equity investment net of disposal costs and the present value of the expected future cash flows of the long-term equity investment. The corresponding impairment provision shall be made based on the difference between the carrying amount and the recoverable amount. Once the impairment loss of long-term equity investment is recognized, it will not be reversed in subsequent accounting periods. After testing, a new provision for impairment of long-term equity investment in 2024 will be 2.9443 million yuan.

3. The impact of the impairment provision on the company

During the reporting period, the company made various impairment provisions totaling 102.515 million yuan, a total decrease in 2024

The net profit attributable to the owners of the parent company was 102.515 million yuan, and the corresponding decrease was 102.515 million yuan attributable to the owners of the parent company at the end of the reporting period. The provision for impairment is in accordance with the Accounting Standards for Business Enterprises and the Company's meeting

The relevant provisions of the policy can truly and objectively reflect the company's financial position as of December 31, 2024

Moreover, the operating results in 2024 are in line with the provisions of relevant laws and regulations and the actual situation of the company, will not affect the normal operation of the company, and there is no harm to the interests of the company and all shareholders.

4. Other notes

The above data is a preliminary estimate made by the company's financial department according to the current status of the company's assets, and has not been audited by an accounting firm. As of the disclosure date of this announcement, the company's related asset impairment test is still in progress, and the amount of asset impairment provision accrued in this period is subject to the company's officially disclosed 2024 annual report. Please pay attention to the investment risks.

The announcement is hereby made.

Board of Directors of Suzhou NOVOSENSE Microelectronics Co., Ltd

January 18, 2025