CANSINOBIO (06185) announced plans to utilize its capital reserve to offset accumulated losses as of December 31, 2024, in a move aimed at enhancing the company's high-quality development and improving investor returns.

According to the audited financial statements for 2024 prepared by Deloitte Touche Tohmatsu, the parent company reported accumulated losses of RMB 1.45 billion, with surplus reserves of RMB 118 million and capital reserves of RMB 6.5767 billion as of year-end. The accumulated losses primarily stem from operational results in previous years.

The proposed capital reserve allocation for offsetting losses—totaling RMB 1.45 billion—will be sourced entirely from share premium contributions made by shareholders in cash. Under China's Company Law, relevant financial regulations, and the company's articles of association, CANSINOBIO plans to utilize RMB 118 million from surplus reserves and RMB 1.332 billion from capital reserves to fully eliminate the parent company's accumulated losses.

Upon completion, the surplus reserve will be reduced to zero, while the capital reserve will decrease to RMB 5.245 billion. This measure is expected to strengthen the company's ability to generate investor returns and support sustainable growth.