CITIC Guoan Information Industry Co Ltd

CITIC Guoan Information Industry announced that the delivery of the capital increase using a 49% stake in Yiyang Guoan to China Broadnet Hunan Network has been completed. Yiyang Guoan was valued at 26.4193 million yuan, and the company newly acquired a 0.5258% stake in China Broadnet Hunan. Combined with the corresponding share from the earlier capital increase using a 46.46% stake in Changsha Guoan, the total holding has risen to 3.5561%. This portion of equity has not yet completed industrial and commercial registration changes, and the final shareholding ratio is subject to the registration results filed with the market regulatory authorities. After the equity delivery is completed, an audit of profits and losses is required, with the relevant profits and losses borne by the original shareholders before delivery. The equity capital increase work for the remaining three subsidiaries is progressing. The company approved the proposal to participate in the integration of Hunan cable television networks in June 2025, and completed the equity capital increase process for Changsha Guoan in January 2026.

Guoan Co. has released its first-half 2026 earnings forecast, projecting a net loss attributable to shareholders of the listed company of 123 million to 175 million yuan. After deducting non-recurring gains and losses, the net loss is expected to be 25.7 million to 51.3 million yuan, a significant narrowing from the 81.48 million yuan core loss in the same period last year, indicating a clear improvement in its main business. The change in earnings is mainly due to the company making additional provisions for estimated liabilities related to investor litigation, based on the accounting principle of prudence. This item is classified as a non-recurring gain or loss and will not have a lasting impact on the company's operating fundamentals. Excluding this one-time effect, the subsidiary Beijing Honglian Jiujiu Information Industry Co., Ltd. further optimized its business structure, and the significantly narrowed core loss confirms the improving trend in the main business.