Announcement on the Active Termination of Cash Option Distribution for Company Stock by Shareholders' Meeting Resolution
Jingwei Textile Machinery Co., Ltd. (hereinafter referred to as "Jingwei Textile" or "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
Special Reminder:
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Due to market changes, Jingwei Textile is facing significant operational uncertainties that may have a substantial impact on the Company. To protect the interests of minority shareholders, in accordance with the "Shenzhen Stock Exchange Listing Rules" and other relevant laws and regulations, the Company, upon the proposal of its shareholders China Hengtian Group Co., Ltd. (hereinafter referred to as "Hengtian Group") and China Hengtian Holdings Co., Ltd. (hereinafter referred to as "Hengtian Holdings"), has decided to actively withdraw the listing of its A-shares on the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") and instead apply for transfer on the National SME Share Transfer System.
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To fully protect the interests of investors, the Company has initiated a protection mechanism for dissenting shareholders and other shareholders. Hengtian Group will provide cash options to all A-share shareholders registered on the cash option record date, excluding Hengtian Group and China Textile Machinery (Group) Co., Ltd. (hereinafter referred to as "CTMC Group"), with certain restrictions on shares.
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The Company's stock (stock abbreviation: Jingwei Textile, stock code: 000666) has been continuously suspended from trading since the market opened on September 1, 2023. The decision to actively terminate the listing of the Company's stock has been approved by the Company's second extraordinary general meeting of shareholders in 2023. The Company's stock has entered the cash option distribution, exercise declaration, and settlement stage and will no longer be traded. Investors are advised to pay attention to investment risks. Each eligible A-share shareholder will receive one cash option for each share held, and shareholders who obtain cash options can declare to exercise their rights during the cash option declaration period at the exercise price of 9.24 CNY per share.
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The cash option declaration period is from October 13 to October 19, 2023, during trading hours from 9:30-11:30 AM and 1:00-3:00 PM. Shareholders who obtain cash options can declare to exercise their rights during this period, transferring their shares to the cash option provider, Hengtian Group. If eligible A-share shareholders do not declare or effectively declare to exercise their cash options during the declaration period, they will not be able to obtain the corresponding cash compensation.
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Shareholders declaring cash options cannot declare for shares that are subject to restrictions, have been frozen, pledged, or have other rights limitations. The maximum number of shares a shareholder can declare is limited to the number of shares held in their account that are not subject to restrictions, pledges, judicial freezes, or other rights limitations as of the close of trading on the cash option record date. If shares declared for cash options are subsequently restricted, frozen, pledged, or subject to third-party rights after the declaration is completed, the cash option declaration for those shares will be invalidated from the time such restrictions occur. Investors holding Jingwei Textile shares through margin accounts and needing to declare cash options must transfer the corresponding shares to their regular securities accounts by the cash option record date. On the cash option distribution date, the corresponding cash options will be distributed to the investor's securities account, and investors must declare to exercise their cash options through their securities accounts on the declaration date. Investors engaged in repurchase agreements must complete early repurchase procedures by the trading day before the cash option record date.