Nanjing Sinolife United Co., Ltd. (Sinolife United) has resolved to deploy portions of its capital and statutory surplus reserves to eliminate RMB306.00 million in parent-company accumulated losses recorded as of 31 December 2025, according to an inside information announcement filed with the Hong Kong Stock Exchange on 24 July 2026.

The board approved the utilisation of RMB258.70 million from the capital reserve—sourced entirely from historical share-premium cash contributions—and the full RMB47.30 million statutory surplus reserve, bringing the total applied amount to RMB306.00 million.

Post-transaction, the parent company’s capital reserve will decline from RMB544.20 million to RMB285.50 million, while the statutory surplus reserve will be reduced to zero. Accumulated losses will be fully offset, resetting the balance to RMB0 as at 31 December 2025.

Management stated that clearing the deficit is intended to “enhance the capacity to deliver investor returns” and support Sinolife United’s high-quality development.

The proposal requires approval by ordinary resolution at an upcoming extraordinary general meeting. A circular detailing the plan and the EGM notice will be dispatched to shareholders in due course.

Investors are advised to exercise caution when dealing in Sinolife United shares.