Huitongda Network (HKG:9878) said its board has approved a plan to use 2.07 billion yuan from its capital reserve to offset accumulated losses, according to a Tuesday Hong Kong bourse filing.

Shares of the logistics company were down nearly 3% in Wednesday afternoon trade.

As of Dec. 31, 2024, the company recorded accumulated losses of 2.07 billion yuan, no balance in its surplus reserve, and a capital reserve of 9.27 billion yuan, based on an audit.

The losses stemmed mainly from interest expenses tied to obligations incurred during multiple financing rounds before its initial public offering.

After the transfer, Huitongda's capital reserve will drop to 7.20 billion yuan, while accumulated losses will be reduced to zero.