002355SZSE

Announcement on the 2025 Profit Distribution Proposal

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This announcement details Xingmin Zhizhi's 2025 profit distribution proposal. The company reported a net loss for 2025, resulting in negative distributable profits. Consequently, the board proposes no cash dividends, no bonus shares, and no capital reserve to share capital increase for 2025 to ensure stable operations and long-term shareholder interests.

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Securities Code: 002355 Securities Abbreviation: Xingmin Zhizhi Announcement No.: 2026-017

Xingmin Zhizhi (Group) Co., Ltd. Announcement on the 2025 Profit Distribution Proposal

The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and there are no false records, misleading statements, or major omissions.

I. Deliberation Procedures

Xingmin Zhizhi (Group) Co., Ltd. (hereinafter referred to as the "Company") deliberated and approved the "2025 Profit Distribution Proposal" at the 33rd meeting of the Sixth Board of Directors held on April 28, 2026. This proposal needs to be submitted to the Company's 2025 Annual General Meeting for deliberation.

II. Basic Information of the Current Profit Distribution Plan

  1. Distribution Basis: 2025. According to the audit report He Xin Shen Zi (2026) No. 000703 issued by He Xin Certified Public Accountants (Special General Partnership), the net profit attributable to shareholders of the listed company in 2025 was -324,498,756.65 yuan. Adding the undistributed profit at the beginning of the year of -1,307,242,509.6 yuan, the distributable profit at the end of the consolidated statement period was -1,631,741,266.25 yuan. The net profit of the parent company in 2025 was -288,481,907.44 yuan. Adding the undistributed profit at the beginning of the year of -299,350,413.03 yuan, the distributable profit at the end of the parent company period was -587,832,320.47 yuan. Given that the distributable profit in the consolidated statement for 2025 is negative, and to ensure the Company's normal production and operation, achieve sustainable, stable, and healthy development, and better protect the long-term interests of all shareholders, the Company's Board of Directors proposes not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserves into share capital for 2025.

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