SINOLIFE UTD (03332) has announced a board resolution to use company reserves to offset its accumulated losses as of December 31, 2025, aiming to drive high-quality development and enhance its capacity to generate returns for investors.
The action is based on applicable laws and regulations. According to the company's annual report for the year ended December 31, 2025, the parent company's accumulated losses stood at approximately RMB 306 million. On that date, the parent company's capital reserves were about RMB 544 million, and its statutory surplus reserves were approximately RMB 47.3 million.
These accumulated losses primarily stem from the operating results of prior years. The portion of capital reserves proposed for offsetting losses is entirely derived from the capital (share) premium paid by shareholders through cash contributions, while the statutory surplus reserves originate from profits, not from shareholder cash contributions.
In accordance with relevant provisions of the Company Law of the People's Republic of China, the Notice on Financial Handling Issues After the Implementation of the Company Law and Foreign Investment Law issued by the Chinese Ministry of Finance, other applicable laws, regulations, and the company's articles of association, the board has resolved to use approximately RMB 258.7 million of the parent company's capital reserves and RMB 47.3 million of its statutory surplus reserves (totaling about RMB 306 million) to offset the parent company's accumulated losses of approximately RMB 306 million.
The use of reserves will be limited to reducing the accumulated losses as of December 31, 2025, to zero. Upon completion of the process, the parent company's capital reserves will be reduced to approximately RMB 285.5 million, the statutory surplus reserves will be reduced to zero, and the accumulated losses will be fully offset to zero (RMB 0).
This measure is expected to bolster the company's ability to create returns for investors and support its pursuit of high-quality development.