Shenhuo Co., Ltd.: The company does not have a situation of "provisioning funds" for certain coal products.

On August 7, Shenhuo Co., Ltd. stated at its performance briefing that there is no situation of provisioning funds for certain coal products. The company conducts impairment testing on assets that show signs of impairment in accordance with the requirements of enterprise accounting standards and makes corresponding provisions for asset impairment based on the results of the impairment testing. There is no situation of provisioning funds being over-considered or whether excess funds will be re-included in profit margins in the future.