Securities code: 688728 Securities abbreviation: Gekewei Announcement No.: 2024-053

Geke Micro Co., Ltd

Announcement on the provision for asset impairment in the first three quarters of 2024

The board of directors and all directors of the company guarantee that the content of this announcement does not contain any false records, misleading statements or material omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

1. Overview of asset impairment provisions in the first three quarters of 2024

Combined with the actual operating conditions of Geke Micro Co., Ltd. (hereinafter referred to as the "Company") and the influence of industry market changes and other factors, according to the "Accounting Standards for Business Enterprises No. 1 - Inventory", "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 8 - Asset Impairment" (hereinafter collectively referred to as the "Accounting Standards for Business Enterprises") and other relevant accounting policies, for the objective and Fairly reflect the company's financial position as of September 30, 2024 and the operating results from January to September 2024, and after the company and its subsidiaries have conducted a comprehensive and full evaluation and analysis of various financial assets, inventories and long-term assets, it is believed that some of the above-mentioned assets have certain signs of impairment. In the first three quarters of 2024, the total impairment provisions made by the company totaled 115.1303 million yuan. The details are shown in the following table:

Unit: 10,000 yuan

Item Accrual Amount Remarks

Credit impairment loss 140.62 Including accounts receivable, notes receivable,

Other receivables, etc

Asset impairment loss 11,372.41 Provision for inventory decline

Total 11,513.03

Note: The reporting period included in the provision for impairment is from January 1, 2024 to September 30, 2024, including the impairment provision made in the first half of 2024.

2. Specific description of the provision for asset impairment in the first three quarters of 2024

(1) Credit impairment losses

Based on expected credit losses, the Company conducts impairment tests on accounts receivable, notes receivable and other receivables and recognizes impairment losses. After testing, the company's credit impairment losses from January to September 2024 totaled 1.4062 million yuan.

(2) Asset impairment losses

At the balance sheet date, the Company evaluates the net realizable value of inventories and makes provision for inventory decline based on the difference between the cost of the inventory category and the net realizable value. When estimating the net realizable value of inventory, the management took into account the latest market conditions, combined with the inventory age, storage status, historical consumption data and future use or sales of inventory, and the total amount of inventory decline loss from January to September 2024 was 113.7241 million yuan.

3. The impact of the asset impairment provision on the company

The provision for impairment was included in the asset impairment loss and credit impairment loss accounts, with a total impact of 115.1303 million yuan on the company's total profit in the consolidated statement from January to September 2024 (the total consolidated profit does not calculate the impact of income tax). The provision for asset impairment is unaudited, and the final amount confirmed by the annual audit of the accounting firm shall prevail.

4. Other notes

The provision for impairment is in line with the relevant provisions of the Accounting Standards for Business Enterprises and the company's accounting policies, and can truly and objectively reflect the company's financial position as of September 30, 2024 and the operating results from January to September 2024, in line with the provisions of relevant laws and regulations and the actual situation of the company, and will not affect the normal operation of the company. Please pay attention to the investment risks.

The announcement is hereby made.

Board of Directors of Geke Micro Co., Ltd

October 31, 2024