Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital
The company and its board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
Shanghai Weiertai Industrial Automation Co., Ltd. (hereinafter referred to as the "Company") held the 13th meeting of its 9th Board of Directors on April 27, 2026, and approved the "Proposal on Uncovered Losses Reaching One-Third of Paid-in Capital." In accordance with the "Company Law of the People's Republic of China" and the "Articles of Association," this proposal needs to be submitted to the Company's 2025 Annual General Meeting for deliberation. The relevant situation is hereby announced as follows:
I. Overview
According to the 2025 Annual Audit Report issued by Zhonghuan Certified Public Accountants (Special General Partnership), as of December 31, 2025, the Company's consolidated financial statements showed undistributed profits of -87,647,883.17 yuan and paid-in capital of 143,448,332.00 yuan. The amount of uncovered losses has exceeded one-third of the total paid-in capital.
II. Main Reasons for Losses
- The Company's core business has historically been in the instrument and meter business, with products primarily used in industrial control. In recent years, the number of new projects, especially large-scale ones, has continuously decreased, and market competition has intensified. Simultaneously, industrial control instrument products and overall solutions have become increasingly homogenized, leading to increased price sensitivity from downstream customers, which has directly squeezed the company's product profit margins. Furthermore, the overall market demand in key downstream industries such as petrochemicals, steel, building materials, and papermaking has been weak. These multiple external market factors, combined with internal operating factors, have resulted in continuous operating losses in the company's instrument and meter business segment for several consecutive years.