Shanghai Petrochemical’s board approved a RMB 545.00 million asset-impairment provision for the first half of 2026 after testing assets with impairment indicators in line with China’s Accounting Standards for Business Enterprises (ASBE).

The entire charge relates to inventory, reflecting application of ASBE No.1 (Inventory) and No.8 (Asset Impairment), which require carrying inventories at the lower of cost and net realisable value and writing down assets whose recoverable amount falls below book value.

Key balance-sheet effects: • Opening balance of inventory-impairment provision (1 January 2026): RMB 463.00 million • Additions in 1H 2026: RMB 545.00 million • Write-backs/usage in 1H 2026: RMB 394.00 million • Closing balance (30 June 2026): RMB 614.00 million

The board stated the provision accurately reflects the company’s asset position and complies with relevant accounting standards.