002374SZSE

Announcement on Uncovered Losses Exceeding One-Third of Share Capital

Zhongrui Co., Ltd.·

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Shandong Zhongrui Industrial Development Co., Ltd. announces that its uncovered losses have exceeded one-third of its share capital as of December 31, 2025. This is primarily due to a RMB 137.35 million impairment loss recognized in 2025, mainly from unrecoverable receivables in its landscaping business. The company plans to address this by accelerating the collection of landscaping receivables and exploring overseas markets for its packaging technology business.

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Securities Code: 002374 Securities Abbreviation: Zhongrui Shares Announcement No.: 2026-026

Shandong Zhongrui Industrial Development Co., Ltd. Announcement on Uncovered Losses Exceeding One-Third of Share Capital

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of this announcement, and that there are no false records, misleading statements, or material omissions.

Shandong Zhongrui Industrial Development Co., Ltd. (hereinafter referred to as the "Company") held the third meeting of the seventh Board of Directors on April 16, 2026, and reviewed and approved the "Proposal on Uncovered Losses Exceeding One-Third of Share Capital." The details are as follows:

I. Overview

According to the "2025 Annual Audit Report" issued by Hexin Certified Public Accountants (Special General Partnership), as of December 31, 2025, the undistributed profits on the Company's parent company's financial statements were -203,479.68 million yuan, and the consolidated financial statements' undistributed profits were -248,060.75 million yuan. The paid-in capital was 108,520.93 million yuan, and the Company's uncovered losses exceeded one-third of the total paid-in capital.

II. Main Reasons for Formation

The significant amount of uncovered losses in 2025 was mainly due to the impairment loss of RMB 13,735 million recognized by the Company in 2025, which resulted in a net loss and increased the amount of uncovered losses. The impairment loss was mainly caused by the unfulfilled expectations for the recovery of receivables from projects of the landscaping and ecological business subsidiary.

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Announcement on Uncovered Losses Exceeding One-Third of Share Capital — Zhongrui Co., Ltd. | SZSE Releases