Stock Code: 002319 Stock Abbreviation: Letong Shares Announcement No.: 2026-016 Zhuhai Letong Chemical Co., Ltd. Announcement on Unrecognized Losses Reaching One-Third of Paid-in Capital The Company and the Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions. Zhuhai Letong Chemical Co., Ltd. (hereinafter referred to as the "Company") held the fifth meeting of its seventh Board of Directors on April 22, 2026, and reviewed and approved the "Proposal on Unrecognized Losses Reaching One-Third of Paid-in Capital." This proposal needs to be submitted to the shareholders' meeting for deliberation. The specific situation is hereby announced as follows: I. Overview According to the "Audit Report of Zhuhai Letong Chemical Co., Ltd." (Hao Shen Zi [2026] No. 00001401) issued by Beijing Dehao Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Dehao Firm"), as of December 31, 2025, the Company's retained earnings in the consolidated balance sheet were -284,032,452.98 yuan, the amount of unrecognized losses was -284,032,452.98 yuan, and the paid-in capital was 209,472,510.00 yuan. The amount of unrecognized losses has reached one-third of the total paid-in capital. In accordance with the "Company Law of the People's Republic of China" and the "Articles of Association," this matter needs to be submitted to the shareholders' meeting for deliberation. II. Main Reasons for Losses The retained earnings at the beginning of 2025 were -273,999,220.92 yuan, and the retained earnings at the end of 2025 were -284,032,452.98 yuan. The net profit attributable to shareholders of the listed company in 2025 was a loss of 10,033,232.06 yuan. The main reasons for the unrecognized losses in 2025 are as follows: (1) The demand in the terminal market for the ink industry recovered slowly, and product price competition was fierce, limiting overall profit margins; (2) Losses from investments in associates. III. Measures to Compensate for Losses
- Deepen Core Business and Optimize Operating Structure The Company will focus on its core business of ink manufacturing, integrate resources and adjust operations around the main industry chain, continuously optimize its asset structure and business layout, and improve its corporate governance. While maintaining its existing market share, the Company will continue to expand market areas and increase customer coverage, promote its core competitiveness, consolidate its competitive advantage in product quality and quantity, enhance overall sales scale, and strive to increase performance revenue and profitability.
- Strengthen Internal Management and Improve Operational Efficiency The Company will be guided by the internal management principle of cost reduction and efficiency improvement, further strengthen cost management and resource integration, optimize the performance appraisal mechanism, comprehensively improve internal collaborative management, concentrate production capacity, reduce production losses, alleviate cost pressures, and effectively enhance the Company's sustainable operating capacity.
- Persist in R&D Innovation and Consolidate Technological Advantages The Company will leverage its existing technological accumulation to enhance R&D and innovation efficiency, continue to increase investment in technological R&D, closely follow the trend of green development in the market, meet the diversified needs of customers, focus on continuous innovation and iterative improvement of core products such as water-based inks, surface printing inks, and UV inks, and continuously promote product optimization and upgrading. It will enhance core competitiveness through technological innovation and ensure a leading position in the industry's technology.
- Strengthen Fund Management and Expand Financing Channels The Company will maintain good cooperative relationships with financial institutions, improve the fund utilization plan, improve the Company's liquidity, ensure asset safety, and reduce operating burdens. In addition, the Company will actively seek diversified financing channels to provide funding support for the Company's long-term business development, technological upgrading, and strategic transformation.
- Promote Business Synergy and Seek Growth Opportunities The Company will combine industry development trends and policy guidance to continuously explore new business development opportunities, optimize asset allocation, extend the industrial chain, enhance the Company's overall competitiveness, and strive to achieve diversified and high-quality development for the Company. Hereby announced. Board of Directors of Zhuhai Letong Chemical Co., Ltd. April 24, 2026