Group 1 - The stock price of Guangyuyuan (600771) closed at 21.91 yuan on August 15, 2025, with an increase of 1.67% and a turnover rate of 2.89% [1] - The trading volume was 141,500 shares, resulting in a total transaction amount of 309 million yuan [1] - On the same day, the net inflow of main funds was 10.659 million yuan, accounting for 3.45% of the total transaction amount [3][4] Group 2 - The company has received inquiries from investors regarding its plans to use capital reserves to cover losses, as several other companies have already announced similar intentions [1] - The company’s secretary indicated that any matters requiring disclosure will be addressed in company announcements [2][1] - The capital reserve compensation details have been fully implemented, with eight listed companies already announcing their plans to use capital reserves for loss compensation [1]

Core Viewpoint - The recent announcement by HNA Technology Co., Ltd. regarding the use of capital reserve to offset losses reflects a broader trend among listed companies aiming to meet profit distribution conditions for future dividends, facilitated by new regulations allowing such measures [1][2][3] Group 1: Regulatory Changes - The new Company Law allows the use of capital reserves to cover losses after exhausting discretionary and statutory reserves, with specific financial regulations established by the Ministry of Finance [2][4] - Since the implementation of the new Company Law, numerous companies have amended their articles of association to clarify the order of using reserves for loss coverage [2][4] Group 2: Market Impact - As of August 11, 2023, eight companies have announced plans to use capital reserves to offset losses, with four of these proposals already approved by temporary shareholder meetings [2][7] - It is estimated that over 650 listed companies could benefit from the new regulations, with a significant number expected to adopt this measure in the latter half of the year [7][8] Group 3: Financial Implications - Utilizing capital reserves to offset losses can improve financial statements, enhance market confidence, and potentially restore dividend eligibility, thus benefiting investor returns [3][4] - However, reliance on this method without improving core business performance may mislead investors regarding the company's actual financial health [4][9] Group 4: Investor Considerations - Investors are advised to monitor the sustainability of companies' profitability, as the use of capital reserves does not inherently resolve underlying issues of profitability [5][9] - Concerns have been raised about the potential for companies to engage in "ineffective loss offsetting," which could signal deeper financial troubles [7][9]

Core Viewpoint - The Ministry of Finance has issued a notice to clarify financial handling issues related to the Company Law and Foreign Investment Law, effective from July 1, 2024, focusing on the use of capital reserves to cover losses and the treatment of various funds in foreign-invested enterprises [1][4]. Group 1: Financial Regulations - The new Company Law mandates that capital reserves can only be used to cover losses after utilizing discretionary and statutory reserves, with specific conditions for using capital reserves [1][2]. - The notice specifies that non-monetary assets contributed as capital must be evaluated for pricing, ensuring proper asset assessment and internal governance [3][4]. - The notice emphasizes the need for board resolutions and shareholder meetings to approve the use of capital reserves for loss coverage, protecting shareholder rights [2][3]. Group 2: Treatment of Funds in Foreign-Invested Enterprises - Foreign-invested enterprises will transition from maintaining reserve funds to statutory and discretionary capital reserves, with specific management guidelines for these funds [4]. - The cancellation of the three funds (reserve fund, enterprise development fund, and employee reward and welfare fund) will alleviate financial pressure on foreign-invested enterprises, allowing for better liquidity and operational vitality [4][5]. - The new regulations aim to equalize the profit distribution system between foreign-invested and domestic enterprises, enhancing the business environment and stimulating innovation [4][5]. Group 3: Implementation and Compliance - Companies are advised to view the new regulations as a comprehensive test of corporate governance and internal control, emphasizing the importance of compliance and risk awareness [5][6]. - The Ministry of Finance plans to monitor the implementation of the notice and gather feedback from stakeholders to improve the effectiveness of the regulations [6].