Summary by Futu AI
CHINA ANNOUNCED ON 27 MARCH 2024 THAT THE COMPANY AND ITS SUBSIDIARIES CONDUCTED DEPRECIATION TESTS ON ASSETS SHOWING SIGNS OF DEPRECIATION IN 2023 IN ACCORDANCE WITH CORPORATE ACCOUNTING STANDARDS AND RELATED POLICIES. UNDER REVIEW, THE DECISION ALLOCATES A TOTAL OF RMB63,816.27 MILLION IN ASSET DEPRECIATION IN 2023, OF WHICH THE INVENTORY DECLINE IS POISED TO BE RMB63,788.84 MILLION, MAINLY DUE TO THE CLOSURE OF SOME TAX-FREE STORES IN THE HAINAN REGION IN 2022. In addition, impairment losses on fixed assets and rights of use assets amounted to RMB5.02 million and RMB 19.96 million, respectively. This subtraction will reduce the company's 2023 total profit, and the specific impact will be based on the company's audited annual report. The Board of Directors and the Supervisory Board consider that this action is reasonable to reflect more fairly the financial situation of the Company.