Gansu Dunhuang Seed faces shareholder vote on loss coverage

Gansu Dunhuang Seed (SSE:600354) faces a shareholder vote after announcing that unrecovered losses reached one-third of the total paid-in capital, according to a filing. Despite profits, the company's financials reveal an RMB 867.48 million unallocated profit deficit as of December 31, 2024, against a paid-in capital of RMB 527.80 million. The seed producer attributes the situation to significant losses in 2018 and 2019, compounded by asset impairment and credit losses. The firm has outlined measures to boost performance, including strategic realignment, increased R&D, and operational efficiency improvements. Additionally, Gansu Dunhuang Seed announced its plan to appoint ZhongShen ZhongHuan as their auditor, replacing DaXin. DaXin verified this financial report but were not retained. The company has announced they will apply to the shareholders of the previous fiscal year with the news that they propose not to distribute profits. Gansu Dunhuang Seed’s board and supervisors have approved the loss coverage proposal and auditor change, referring these matters to the shareholders for consideration at the 2024 annual general meeting.