Xinjiang Xintai Natural Gas to use surplus reserves to cover losses

Xinjiang Xintai Natural Gas (SSE:603393) announced its plan to use RMB 93,931,354.61 of its parent company's accumulated surplus reserves to offset its unappropriated losses as of December 31, 2024. The company's unappropriated profit for the parent company was a negative RMB 93,931,354.61 at that time, with surplus reserves of RMB 218,872,223.24. This measure aims to improve the company’s financial health and enable it to meet dividend distribution conditions.

The deficit is attributed to increased financing interest expenses from new projects, higher management costs due to expanded operations, increased provision for expected credit losses on accounts receivable, and delays in repatriating dividends from major overseas subsidiaries. Following the proposal's implementation, the parent company's surplus reserves will decrease to RMB 124,940,868.63, with unappropriated profits returning to RMB 0.

The proposal has been reviewed and approved by the Fifth Board of Directors' Sixth Meeting, the Fifth Audit Committee's Fourth Meeting, and the Fifth Board of Supervisors' Sixth Meeting, all held on September 30, 2025. The final approval will be sought at the 2025 Second Extraordinary General Meeting of Shareholders, scheduled for October 16, 2025.