Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital

Stock Code: 002072 Stock Abbreviation: Kai Rui De Announcement No.: 2026-L005 Kai Rui De Holdings Co., Ltd. Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and there are no false records, misleading statements, or major omissions. Kai Rui De Holdings Co., Ltd. (hereinafter referred to as the "Company") at the sixth meeting of the eighth Board of Directors held on February 9, 2026, deliberated and passed the "Proposal on Uncovered Losses Reaching One-Third of Paid-in Capital." The specific situation is hereby announced as follows: I. Overview According to the Audit Report No. You Zhen Shen Zi [2026] No. 0027 issued by Unite Zhen Qing Certified Public Accountants (Special General Partnership), as of December 31, 2025, the undistributed profits in the Company's consolidated balance sheet were -813,411,562.63 yuan. The amount of uncovered losses was 813,411,562.63 yuan, and the paid-in capital was 367,680,000.00 yuan. The uncovered losses have reached one-third of the total paid-in capital. In accordance with the relevant provisions of the "Company Law" and the "Articles of Association," this matter needs to be submitted for deliberation at the Company's 2025 Annual General Meeting of Shareholders. II. Reasons for Losses As of the end of 2025, the Company's uncovered losses were 813,411,562.63 yuan, and the total paid-in capital was 367,680,000.00 yuan, with the uncovered losses reaching one-third of the total paid-in capital. The main reasons for the losses are that the Company incurred significant operating losses in previous years, and the former actual controller's poor management and involvement in violations led to huge debts. Although the Company eliminated the existing debts through bankruptcy reorganization in 2021 and developed new self-operated coal businesses, the cumulative uncovered losses by the end of 2024 still exceeded one-third of the paid-in capital. In 2025, domestic coal market prices continued to face downward pressure and adjustments. The Company adhered to a prudent operating principle, actively adjusted its business strategy, and controlled the scale of operations in phases, leading to a year-on-year decline in revenue for the period. At the same time, due to the decline in the gross profit margin of the Company's coal trading self-operated business and an increase in non-operating expenses, the Company still incurred losses despite implementing various profit protection measures. As of December 31, 2025, the Company's cumulative uncovered losses still exceeded one-third of the total paid-in capital. III. Countermeasures In 2026, the Company will continue to focus on its self-operated coal business, facing an unstable industry situation, and strengthen its business risk control capabilities. The Company will strive for a dual improvement in revenue scale and profitability, and on the basis of continuously expanding and strengthening its existing coal trading business, it will explore new business and profit growth points, strive to achieve strategic transformation, and further improve the Company's asset quality and profitability, and achieve the Company's healthy and sustainable operation. Hereby announced. Board of Directors of Kai Rui De Holdings Co., Ltd. February 11, 2026