002383SZSE

Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital

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This announcement details that Beijing Topstar Technology Co., Ltd.'s uncovered losses have exceeded one-third of its paid-in capital as of December 31, 2025. The company attributes this to high management, R&D, and financial expenses, along with asset impairments. Strategies to address this include business restructuring, exiting low-efficiency segments, and enhancing smart manufacturing.

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Stock Code: 002383 Stock Abbreviation: Topstar Announcement No.: 2026-017

Beijing Topstar Technology Co., Ltd. Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital

The Company and its 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 significant omissions.

Beijing Topstar Technology Co., Ltd. (hereinafter referred to as the "Company") held the 20th meeting of the 6th Board of Directors on April 22, 2026, and reviewed and approved the "Proposal on Uncovered Losses Reaching One-Third of Paid-in Capital." The relevant matters are hereby announced as follows:

I. Overview of the Situation

According to the audit by Shangshih Certified Public Accountants (Special General Partnership), as of December 31, 2025, the Company's consolidated net assets were RMB -2,275,977,996.80. The Company's paid-in capital was RMB 740,360,305. The amount of uncovered losses (absolute value of negative undistributed profit) has exceeded one-third of the total paid-in capital. In accordance with the "Company Law," "Articles of Association," and other relevant regulations, this matter needs to be submitted for review by the Company's shareholders' meeting.

II. Main Reasons for Losses

From 2018 to 2024, the Company's management expenses, R&D expenses, and financial expenses remained at a high level. This was mainly due to two reasons: first, the Company continuously increased its investment in refined management and R&D activities; second, some low-efficiency assets occupied a significant amount of capital, increasing capital costs. In addition, the Company strictly followed the "No. 8 - Impairment of Assets" of the "Accounting Standards for Business Enterprises" and relevant accounting policies to provision for impairment of goodwill, inventory, and other significant assets. In 2025, the Company focused on its core responsibilities and main business, strengthening resource integration and allocation, and expanding business in key areas such as surveying and mapping, precision agriculture, and overseas markets. Despite the intensifying market competition, the Company's main business revenue grew against the trend. Meanwhile, thanks to the Company's multiple measures to reduce costs and increase efficiency and improve operational efficiency, profitability has gradually improved. In 2025, operating revenue was RMB 1,369,407,073.15, an increase of 14.27% year-on-year. The net profit attributable to shareholders of the listed company for the full year was RMB -158,219,407.27, a year-on-year reduction in losses of 28.81%.

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