Kedali unit boosts capital by 300 million yuan

Shenzhen Kedali Industry Co., Ltd. (the company) announced on December 16, 2025, a significant capital increase for its wholly-owned subsidiary, Shandong Kedali Precision Industry Co., Ltd. The company's board of directors, at its fifth meeting on December 15, 2025, approved using its own funds to inject 300 million yuan into Shandong Kedali.

This move will increase Shandong Kedali's registered capital from the original 100 million yuan to 400 million yuan. Shandong Kedali will remain a wholly-owned subsidiary of the company after this capital increase.

This strategic capital injection is driven by the need to support Shandong Kedali's operational development and ensure its daily cash flow, promoting sound and sustainable growth aligned with the company's development plans. The funding for this increase will come from the company's own capital, and the transaction is not expected to negatively impact the company's financial or operational status. Furthermore, it will not alter the company's consolidated financial statements or harm the interests of its shareholders.

As of September 30, 2025 (unaudited), Shandong Kedali reported total assets of 2,147.66 million yuan, total liabilities of 1,078.56 million yuan, and net assets of 1,069.10 million yuan. For the same period, its operating revenue reached 2,776.04 million yuan, with a net profit of 110.43 million yuan. This capital increase is considered a non-related party transaction and does not constitute a major asset reorganization under relevant regulations.