Middle Farmers Seed Industry: Plans to use 148 million yuan from the public reserves to compensate for the losses of the parent company.

The announcement from Zhongnong Fazhongye stated that the 54th meeting of the 7th Board of Directors approved the resolution to use retained earnings to offset losses, which still requires approval from the shareholders' meeting. As of December 31, 2024, the parent company's undistributed profits were negative 148 million yuan, and it is proposed to use 15.6318 million yuan from the surplus reserve fund and 132 million yuan from the capital reserve fund to make up the losses. After implementation, the surplus reserve fund will decrease to zero, the capital reserve fund will decrease to 262 million yuan, and the undistributed profits will be zero. The main reason for the loss was the provision for impairment of long-term equity investment in 2017. This offset may help the company meet the conditions for profit distribution.