Securities Code: 002425 Securities Abbreviation: Kaizer Culture Announcement No.: 2026-015
Kaizer (China) Culture Co., Ltd. Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital
The Company and the Board of Directors guarantee the authenticity, accuracy, and completeness of the information disclosed in this announcement, and that there are no false records, misleading statements, or material omissions.
Kaizer (China) Culture Co., Ltd. (hereinafter referred to as the "Company") held the 22nd meeting of the 8th Board of Directors on April 23, 2026, and reviewed and approved the "Proposal on Uncovered Losses Reaching One-Third of Paid-in Capital." The relevant situation is hereby announced as follows:
I. Overview
According to the audit report by Zhicheng Certified Public Accountants (Special General Partnership), as of December 31, 2025, the Company's audited consolidated balance sheet showed undistributed profits of -1,460,827,579.40 yuan and paid-in capital of 956,665,066.00 yuan. The amount of uncovered losses has exceeded one-third of the total paid-in capital.
In accordance with the relevant provisions of the "Company Law," this matter needs to be submitted for shareholder approval.
II. Main Reasons for Losses
During the reporting period, the Company's existing game products have entered the latter half of their life cycle, leading to a decline in revenue. New game products launched have not met expectations. Additionally, the underperformance of some acquired entities' businesses has resulted in significant goodwill impairment, disposal of other non-current financial assets, and write-downs on R&D game projects, as well as changes in the fair value of investment properties, negatively impacting the Company's profits and increasing its losses.