SIWI SCI & TECH (01202) plans to use provident funds to make up for losses.

SIWI SCI & TECH (01202) issued an announcement, stating that at the board meeting held on November 27, 2025, the board of directors reviewed and approved (including) the proposal to use surplus reserve to offset losses. According to the audit by Dahuahua, as of December 31, 2024, the company's financial statements had accumulated losses of RMB 272 million, surplus reserve of RMB 8.7 million (including statutory surplus reserve of RMB 8.7 million and discretionary surplus reserve of RMB 0), and capital reserve of RMB 571 million. The company's accumulated losses are mainly due to slow business transformation, lagging product iteration, insufficient profitability, and continuous accumulation of losses from 2012 to 2021, resulting in the company's failure to seize opportunities in the optoelectronic communication industry. In accordance with the Company Law of the People's Republic of China, the notice on financial processing issues after the implementation of the Company Law and the Foreign Investment Law issued by the Ministry of Finance of China, as well as relevant laws, regulations, normative documents, and the company's articles of association, the company proposes to use the surplus reserve of RMB 8.7 million and the capital reserve of RMB 5.71 billion (totaling RMB 5.797 billion) sequentially to offset the company's accumulated losses. The use of surplus reserves to offset losses is limited to offsetting the accumulated losses of the company by the end of 2024. The capital reserves used to offset the company's accumulated losses in this case come from the capital surplus formed by shareholders' contributions in the form of currency, equity, etc., and do not belong to specific shareholders for exclusive or restricted purposes. After the implementation of the plan to use surplus reserves to offset losses, the company's capital reserves will be reduced to RMB 307.7 million, and the accumulated losses will be reduced to zero. The implementation of this plan to use surplus reserves to offset losses will help the company to meet the profit distribution conditions stipulated by relevant laws and regulations and the company's articles of association, thereby enhancing the return on investment for investors and achieving the high-quality development of the company.