Ningbo Kangqiang Electronics Co., Ltd. (hereinafter referred to as "the Company") will repurchase its shares through centralized bidding trading, with a total funding amount not less than RMB 80 million (inclusive) and not more than RMB 130 million (inclusive). The shares to be repurchased are A-shares issued by the Company, with a repurchase price not exceeding RMB 34.5 per share. Based on the maximum repurchase funding of RMB 130 million, the estimated number of shares to be repurchased is approximately 3,768,115 shares, accounting for about 1.00% of the Company's current total share capital. Based on the minimum repurchase funding of RMB 80 million, the estimated number of shares to be repurchased is approximately 231,884 shares, accounting for about 0.62% of the Company's current total share capital. The implementation period for the repurchase is within 12 months from the date of the board's approval of the repurchase plan, with the specific number of repurchased shares to be determined based on the actual number repurchased at the end of the repurchase period. The repurchased shares will be used for future implementation of equity incentive plans and employee stock ownership plans.
The source of funds for this repurchase will be from the Company's own funds or self-raised funds.
Regarding whether relevant shareholders have any plans to reduce their holdings, the Company's largest shareholder, directors, and senior management do not have plans to reduce their holdings in the next six months. If there are plans to reduce holdings during the subsequent repurchase period, the Company will strictly fulfill its information disclosure obligations in accordance with relevant regulations.
According to relevant regulations, the Company has opened a special securities account for share repurchase at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited, which will only be used for repurchasing the Company's shares.
Risk Warning
- There is a risk that the Company's stock price may continue to exceed the price range disclosed in the repurchase plan, making the repurchase plan unfeasible.
- Due to significant changes in the Company's production, operation, financial status, or external objective circumstances, there may be risks of changing or terminating the repurchase plan according to regulations.
- If significant events occur that have a major impact on the Company's stock trading price or if the board decides to terminate the repurchase plan, there is a risk that the repurchase plan may not be successfully implemented.
- The repurchased shares will be used for equity incentives or employee stock ownership plans, and there may be risks that the repurchased shares cannot be fully granted due to the failure of the incentive plan or employee stock ownership plan to be approved by the board and shareholders, or if the incentive targets waive their subscription rights.
- If the repurchased shares are not used for equity incentives or employee stock ownership plans within the statutory period after the completion of the repurchase, there is a risk of cancellation.
- The funds for the repurchase will come from the Company's own funds or self-raised funds. If the required funds for the repurchase cannot be raised, it will lead to the inability to implement the repurchase plan. The Company will make repurchase decisions based on market conditions during the repurchase period, and investors are advised to pay attention to investment risks.
Main Content of the Share Repurchase Plan
Purpose of the Share Repurchase
The board of directors, based on its judgment of the Company's value and confidence in future development, aims to protect the interests of investors, enhance their confidence in the Company, and further establish and improve the Company's long-term incentive mechanism to attract and retain outstanding talent. This will effectively align the interests of shareholders, the Company, and the core team, promoting the long-term development of the Company. The repurchased shares will be used for subsequent employee stock ownership plans and equity incentive plans. If the Company fails to implement these purposes within 36 months after the completion of the share repurchase, the repurchased shares will be legally canceled.