Xueda (Xiamen) Education Technology Group Co.Ltd(000526) : Announcement on uncovered losses exceeding one third of the total paid in share capital

Securities code: Xueda (Xiamen) Education Technology Group Co.Ltd(000526) securities abbreviation: Xueda (Xiamen) Education Technology Group Co.Ltd(000526) Announcement No.: 2022037 XueDa (Xiamen) Education Technology Group Co., Ltd

Announcement on uncovered losses exceeding one third of the total paid in share capital

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

XueDa (Xiamen) Education Technology Group Co., Ltd. (hereinafter referred to as “the company”) held the second meeting of the 10th board of directors on April 22, 2022, deliberated and adopted the proposal on the outstanding loss exceeding one third of the total paid in share capital. This proposal needs to be submitted to the general meeting of shareholders of the company for deliberation. The relevant information is hereby announced as follows:

1、 Basic information

According to the audit of Dahua Certified Public Accountants (special general partnership), the company realized a net profit of -536 million yuan attributable to the shareholders of the listed company in 2021, the undistributed profit according to the consolidation criteria at the end of the period was about -555 million yuan, the paid in share capital of the company was about 118 million yuan, and the outstanding loss had exceeded one-third of the paid in share capital of the company.

The proposal on making up the company’s total uncollected losses in 2021 has been submitted to the third session of the 10th annual general meeting of shareholders for deliberation and approval.

2、 Main reasons for losses

During the reporting period, affected by the “double reduction policy”, the company adjusted and optimized its business strategy and business structure in combination with the actual situation on the premise of ensuring legal and compliant operation; Meanwhile, the provision for impairment of goodwill in the reporting period was 453 million yuan, reducing the performance in the reporting period.

3、 Countermeasures

With the changes in the ecology of the education and training industry, the company will continue to expand the subdivided fields of the education industry with broad market prospects and encouraged by the industry policies, and lay out the fields of vocational education, quality education, educational informatization and cultural services. At the same time, the company will also do a good job in the construction of talent team, strengthen the teaching and research ability, improve the service quality, strictly control the enterprise operation cost, reduce unnecessary expenses and ensure the stability of cash flow, Continuously improve the competitiveness of the company through various measures to provide higher quality and higher quality education services and products for the society.

It is hereby announced.

XueDa (Xiamen) Education Technology Group Co., Ltd

director

meeting

April 26, 2022

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