Liaoning Fuxin, a holding subsidiary of Mingxin Xuteng (605068.SH), stopped production and is not expected to resume production in the short term

Zhitong Finance App News, Mingxin Xuteng (605068.SH) issued an announcement that production line of the company's holding subsidiary, Liaoning Fuxin New Materials Co., Ltd. (“Liaoning Fuxin”) was suspended due to limited production conditions due to changes in the external business environment, and production is not expected to resume in the short term.

The company attaches great importance to this subsidiary's discontinuation of production. After evaluating the delivery capacity of existing orders, Liaoning Fuxin's existing inventory and production capacity can meet product delivery needs within a certain period of time. At the same time, some orders will be transferred to other manufacturing bases within the group, which is not expected to have a significant adverse impact on the fulfillment of the company's customer orders. Moreover, all of the revenue and profit of Liaoning Fuxin comes from settlement by entities within the group, and the discontinuation of production by Liaoning Fuxin itself will not have a significant impact on the normal operation of the company.

The discontinuation of production is expected to have a certain impact on the company's current results. The company will conduct impairment tests on assets related to Fuxin in Liaoning in accordance with the “Corporate Accounting Standards” and the relevant provisions of the company's accounting policies, and calculate asset impairment preparations in accordance with the principle of prudence. According to preliminary calculations by the company's finance department, the estimated impairment amount is about 10 million yuan.