Fujian Yuanxiang New Material Co., Ltd.
Announcement on Changing the Purpose of Repurchased Shares and Cancellation
The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false representations, misleading statements, or material omissions.
Fujian Yuanxiang New Material Co., Ltd. (hereinafter referred to as the "Company") held its eleventh meeting of the fourth Board of Directors on August 5, 2026, and reviewed and approved the "Proposal to Terminate the Plan to Sell Repurchased Shares" and the "Proposal to Change the Purpose of Repurchased Shares and Cancel Them." To stabilize the Company's stock price, protect shareholder interests, and enhance investor confidence, it was agreed to terminate the plan to sell repurchased shares. For details, please refer to the relevant announcement disclosed by the Company on the same day on the Juchao Information Network.
Concurrently, in accordance with relevant regulations, the Board of Directors agreed to change the purpose of the 653,455 repurchased shares (1.00% of the Company's current total share capital) that have not yet been sold. The original purpose was "to maintain the Company's value and shareholder interests, and all repurchased shares will be sold after repurchase," which is now changed to "cancellation to reduce the Company's registered capital." These 653,455 repurchased shares will be cancelled. Other aspects of the repurchase plan remain unchanged. The change in purpose and cancellation of repurchased shares are subject to approval by the Company's first extraordinary general meeting of shareholders in 2026. The relevant details of the change in purpose and cancellation of repurchased shares are hereby announced as follows:
I. Basic Information on Repurchased Shares
On February 28, 2024, the Company held the fourteenth meeting of the third Board of Directors and reviewed and approved the "Proposal on the Company's Share Repurchase Plan." It was agreed that the Company would use its own funds to repurchase a portion of the Company's issued RMB ordinary shares (A shares) through centralized bidding transactions. This repurchase is based on maintaining the Company's value and shareholder interests. The shares will be sold in full within the prescribed period in accordance with relevant repurchase rules and regulatory guidelines. If not sold within three years after the completion of the share repurchase, the unsold portion will be cancelled after fulfilling relevant procedures. The repurchase amount will be no less than RMB 15 million (inclusive) and no more than RMB 30 million (inclusive). The repurchase price will not exceed RMB 35 per share (inclusive). The repurchase period will be within three months from the date the Board of Directors approved the aforementioned share repurchase plan. The specific number of shares repurchased will be based on the actual number of shares repurchased upon the expiration of the repurchase period or the completion of the share repurchase. For details, please refer to the Company's announcements disclosed on February 28, 2024, and March 1, 2024, on the Juchao Information Network (www.cninfo.com) regarding the "Proposal on the Company's Share Repurchase Plan" and the "Repurchase Report."