Shenzhen Hemei Group Co., Ltd. Announcement on the Proposed Non-Distribution of Profits for 2025 Stock Code: 002356 Stock Abbreviation: Hemei Group Announcement No.: 2026-018 Shenzhen Hemei Group Co., Ltd. Announcement on the Proposed Non-Distribution of Profits for 2025 The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. Special Reminder:
- The Company's 2025 profit distribution plan: no cash dividends, no bonus shares, and no capital reserve transfers.
- This profit distribution plan needs to be submitted to the Company's 2025 Annual General Meeting for consideration.
- The profit distribution plan disclosed herein does not fall under the circumstances that may be subject to other risk warnings as stipulated in Rule 9.8.1 of the Shenzhen Stock Exchange Stock Listing Rules. I. Deliberation Procedures Shenzhen Hemei Group Co., Ltd. (hereinafter referred to as the "Company") held the second meeting of the seventh Board of Directors on April 16, 2026, and deliberated and passed the "Proposal on the 2025 Profit Distribution Plan". This proposal needs to be submitted to the Company's 2025 Annual General Meeting for consideration. II. Basic Situation of Profit Distribution and Capital Reserve Transfer to Share Capital Plan According to the standard unqualified opinion audit report issued by Zhonghua Certified Public Accountants (Special General Partnership), in 2025, the Company achieved a net profit attributable to shareholders of listed companies of RMB 38,386,777.50, of which the net profit of the parent company was -RMB 87,768,036.04. As of December 31, 2025, the net profit available for distribution to shareholders of listed companies was -RMB 2,822,457,480.74, of which the net profit available for distribution to shareholders of the parent company was -RMB 2,732,682,030.33. Since the undistributed profits at the end of the reporting period for the Company's consolidated statements and the parent company's statements are both negative. In accordance with the "Articles of Association" and the "Shareholder Return Plan for the Next Three Years (2024-2026)" of the Company, the Board of Directors, based on the actual situation, proposes the following profit distribution plan: the Company plans to not distribute cash dividends, issue bonus shares, or transfer capital reserves to share capital in 2025. Shenzhen Hemei Group Co., Ltd. Announcement on the Proposed Non-Distribution of Profits for 2025 The Company's 2025 profit distribution plan is legal, compliant, and in accordance with the "Articles of Association" and the relevant provisions of the Company's "Shareholder Return Plan for the Next Three Years (2024-2026)". This plan needs to be submitted to the Company's 2025 Annual General Meeting for consideration. III. Details of the Cash Dividend Plan (I) Whether it may trigger other risk warning situations
- For listed companies disclosing their annual cash dividend plan (including no dividend distribution), the following indicators should be listed: | Item | This Year | Last Year | The Year Before Last | | :---------------------------------------------------------------- | :-------- | :-------- | :------------------- | | Total cash dividend (RMB) | 0 | 0 | 0 | | Total share buyback and cancellation (RMB) | 0 | 0 | 0 | | Net profit attributable to shareholders of listed companies (RMB) | 38,386,777.50 | -43,685,727.66 | -47,203,491.77 | | Accumulated undistributed profit at year-end (consolidated statements) (RMB) | | | -2,822,457,480.74 | | Accumulated undistributed profit at year-end (parent company statements) (RMB) | | | -2,732,682,030.33 | | Whether the listing has completed three full fiscal years | ☑ Yes | □ No | | | Total cash dividends in the last three fiscal years (RMB) | | | 0 | | Total share buybacks and cancellations in the last three fiscal years (RMB) | | | 0 | | Average net profit in the last three fiscal years (RMB) | | | -17,500,813.9767 | | Total cash dividends and share buybacks/cancellations in the last three fiscal years (RMB) | | | 0 | | Whether it falls under the circumstances that may be subject to other risk warnings as stipulated in Rule 9.8.1 (IX) of the Stock Listing Rules | □ Yes | □ No | | Shenzhen Hemei Group Co., Ltd. Announcement on the Proposed Non-Distribution of Profits for 2025 Based on the above indicators, the Company has not triggered the circumstances that may be subject to other risk warnings as stipulated in Rule 9.8.1 of the Shenzhen Stock Exchange Stock Listing Rules. (II) Explanation of the Reasonableness of the Cash Dividend Plan Given that the undistributed profits in the parent company statements and consolidated statements for 2025 are both negative, which does not meet the conditions for the Company to implement cash dividends. Considering the Company's long-term strategic planning, to ensure the Company's normal production and operation and future capital needs, the Board of Directors proposes that the Company will not distribute cash dividends, issue bonus shares, or transfer capital reserves to share capital in 2025. To promote the Company's long-term healthy and sustainable development and strengthen investor returns, the Company will further strengthen its operational management, continuously improve its performance, and enhance its profitability. IV. Documents for Reference
- Resolution of the Second Meeting of the Seventh Board of Directors. Hereby announced. Shenzhen Hemei Group Co., Ltd. Board of Directors April 20, 2026