On July 3rd, Gelunhui announced that, according to the audit report issued by Zhongxinhua Accounting Firm (Special General Partnership), as of December 31, 2023, the company's undistributed profit of the parent company was -496.9698 million yuan, the surplus reserves of the parent company were 250.4566 million yuan (all statutory surplus reserves), and the undistributed profit of the consolidated financial statements was -475.6694 million yuan. In order to enhance shareholder returns and in accordance with relevant provisions of the Company Law and the Articles of Association, the company plans to use the above-mentioned surplus reserves of the parent company of 250.4566 million yuan to offset the losses of the previous fiscal year of the parent company, so as to turn the undistributed profit of the parent company into positive as soon as possible, and to enable the company to have the conditions for dividend distribution in the following years and mid-term.
This loss offset plan will reduce the accumulated losses of the parent company by 250.4566 million yuan. After the implementation of this loss offset plan, the surplus reserves of the parent company at the end of 2023 will be 0 million yuan, the undistributed profit of the parent company at the end of 2023 will be -246.5132 million yuan, and the undistributed profit of the consolidated financial statements at the end of 2023 will be -225.2127 million yuan.