002427SZSE

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

✨ AI Summary

Zhejiang Youfu Advanced Fiber Co., Ltd. announces that its unrecognized losses have reached one-third of its paid-in capital as of December 31, 2025. The company reported a net loss of RMB 2,004,032,600.99 in consolidated statements and RMB 2,763,454,161.74 on a parent company basis. The company is implementing measures to improve profitability and operational efficiency to achieve a turnaround.

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Full Translation

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Securities Code: 002427 Securities Abbreviation: Youfu Co. Announcement No.: 2026-011 Zhejiang Youfu Advanced Fiber Co., Ltd. Announcement on Unrecognized Losses Reaching One-Third of Paid-in Capital

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

Zhejiang Youfu Advanced Fiber Co., Ltd. (hereinafter referred to as the "Company") held its twelfth meeting of the sixth Board of Directors on April 27, 2026, and reviewed and approved the "Proposal on Unrecognized Losses Reaching One-Third of Paid-in Capital." In accordance with the "Company Law" and the "Articles of Association," this matter needs to be submitted for shareholder approval. The relevant situation is hereby announced as follows:

I. Overview

According to the "Audit Report" issued by Lianda Certified Public Accountants (Special General Partnership), as of December 31, 2025, the undistributed profits in the consolidated statements were -2,004,032,600.99 yuan, and the undistributed profits of the parent company were -2,763,454,161.74 yuan. The amount of unrecognized losses of the Company was 2,763,454,161.74 yuan, and the paid-in capital was 985,432,777.00 yuan. The unrecognized losses of the Company have reached one-third of the total paid-in capital. In accordance with the "Company Law" and the "Articles of Association," this matter needs to be submitted for shareholder approval.

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