Unified Low-Carbon Technology proposes capital restructuring to erase losses

Unified Low-Carbon Technology (Xinjiang) Co., Ltd. has scheduled its fifth extraordinary general meeting of shareholders for December 16, 2025, to approve a plan to use its capital reserves to cover accumulated losses. The proposal aims to improve the company’s financial health and enable future profit distributions in compliance with regulatory requirements. The meeting will allow both online and in-person participation.

According to the 2024 annual audit report by KPMG Huazhen LLP, as of December 31, 2024, the company's parent entity had undistributed profits of -RMB328,221,490.68. To address this, the company proposes using RMB34,192,504.86 from its surplus reserves and RMB294,028,985.82 from its capital reserves. The combined total will be used to offset the entire accumulated deficit, bringing the undistributed profit to zero.

The historical losses are primarily attributed to the early operational challenges of the company’s former core business, which focused on pear cultivation, processing, and sales. This business was vulnerable to extreme weather, droughts, and pests, leading to unstable revenue and profits over the years. The company states that recent measures, including a non-public issuance of A-shares, significant asset restructuring, expansion into new markets, and cost-reduction efforts, have substantially improved its main business profitability, positioning it for sustainable cash dividends.