Announcement on Uncovered Losses Reaching One-Third of Paid-in Capital
Houpu Clean Energy (Group) Co., Ltd. (hereinafter referred to as "the Company") held the 27th meeting of the 5th Board of Directors on March 30, 2026, where it reviewed and approved the proposal regarding uncovered losses exceeding one-third of the paid-in capital. This proposal will be submitted for review at the Company's 2025 annual shareholders' meeting. The specific situation is as follows:
Overview
According to the audit by Sichuan Huaxin (Group) Accounting Firm (Special General Partnership), the Company achieved an operating income of 1,078.86 million yuan and a net profit attributable to shareholders of the listed company of 7.84 million yuan in 2025. As of December 31, 2025, the Company's audited consolidated financial statements showed undistributed profits of -350.70 million yuan, with the parent company's undistributed profits at -289.74 million yuan. The total paid-in capital of the Company is 470.16 million yuan, and the uncovered losses exceed one-third of the paid-in capital. According to the relevant provisions of the Company Law and the Articles of Association, this matter needs to be submitted for review at the Company's 2025 annual shareholders' meeting.
Performance Report
During the reporting period, benefiting from the decline in domestic LNG prices and the increase in LNG vehicle sales, along with the Company's continuous efforts to expand international business, the traditional natural gas refueling sector experienced a rise in market demand, while the hydrogen energy business achieved stable development, consolidating the overall scale. Additionally, by strategically abandoning some low-profitability orders and focusing on high-profitability orders, as well as implementing cost reduction and efficiency enhancement strategies, the Company's overall gross profit increased, and the profitability of its main business steadily improved. However, due to the impact of the first-instance judgment in the litigation case involving the wholly-owned subsidiary Houpu Clean Energy Group Engineering Technology Co., Ltd. and Lingshi County Tongyi Natural Gas Co., Ltd., the Company accrued a provision of 61.47 million yuan for this case according to relevant enterprise accounting standards, which significantly affected the net profit attributable to shareholders of the listed company. The second-instance judgment is still pending, and the outcome remains uncertain. For specific details, please refer to the announcement regarding the litigation progress of the controlling subsidiary disclosed by the Company on the Giant Tide Information Network (www.cninfo.com.cn).