Securities Code: 002321 Securities Abbreviation: Huaying Agriculture Announcement No.: 2026-020
Henan Huaying Agriculture Development Co., Ltd. Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital
The Company and the 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.
Henan Huaying Agriculture Development Co., Ltd. (hereinafter referred to as the "Company") held its Fifth Meeting of the Eighth Board of Directors on April 16, 2026, and deliberated and passed the "Proposal on Uncovered Losses Reaching One-Third of Paid-in Capital." The relevant situation is hereby announced as follows:
I. Overview of the Situation
According to the audit report issued by Beijing Guofu Jiaying Certified Public Accountants (Special General Partnership), as of December 31, 2025, the Company's consolidated retained earnings were -401,651.80 million yuan, and its paid-in capital was 213,289.01 million yuan. The amount of uncovered losses exceeds one-third of the Company's 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 for deliberation by the Company's shareholders' meeting.
II. Main Reasons for Losses
In 2025, the Company achieved operating revenue of 5.447 billion yuan, a year-on-year increase of 15.15%, with steady growth in operating scale. However, affected by factors such as market price fluctuations, the Company's product gross profit margin narrowed compared to the same period last year, and some assets showed signs of impairment, leading to the provision for asset impairment losses. At the same time, due to a significant year-on-year decline in the price of poultry seedlings of its investee company, the investment income recognized by the Company decreased significantly. These factors collectively led to operating losses in the current period. In addition, the amount of uncovered losses from previous years was substantial. As of the end of 2025, the Company's uncovered losses exceeded one-third of its total paid-in capital.