Guilin Tourism Co., Ltd. (hereinafter referred to as "the Company") guarantees that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions. The Company's seventh board of directors approved a proposal regarding uncovered losses exceeding one-third of the total paid-in capital at its first meeting in 2026, which will be submitted for shareholder approval. The specific situation is announced as follows:
I. Overview
According to the audit report No. 0100512 issued by Zhongzheng Zhonghuan Accounting Firm, the Company achieved a net profit attributable to shareholders of 11,032,768.36 yuan for the year 2025, with undistributed profits at -806,082,779.09 yuan and paid-in capital of 468,130,000.00 yuan. The uncovered losses exceed one-third of the total paid-in capital. According to relevant provisions of the Company Law and the Articles of Association, this matter requires submission to the shareholders' meeting after board approval.