Ningbo Huaxiang plans to spend 200 million to 210 million yuan to repurchase shares for employee stock ownership plans or equity incentives.

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Ningbo Huaxiang Electronic Co., Ltd. (hereinafter referred to as “Ningbo Huaxiang”) released a share repurchase report on March 21, 2026, announcing that it plans to use its own funds to repurchase the company’s shares through centralized bidding, for the purpose of implementing an employee stock ownership plan or equity incentives. The total repurchase fund amount will be in the range of no less than 200 million yuan (inclusive) and no more than 210 million yuan (inclusive). The maximum repurchase price is 48.88 yuan per share. The implementation period will be within 12 months from the date on which the board of directors approves the matter.

Key elements of the share repurchase plan

Repurchase purpose and source of funds

The announcement shows that Ningbo Huaxiang’s repurchase is based on its recognition of the company’s value and confidence in its future development prospects. It aims to improve a long-term incentive mechanism and mobilize the enthusiasm of core employees. All repurchase funds come from the company’s own funds. As of September 30, 2025, the company’s unaudited total assets were 26.075 billion yuan, and its net assets attributable to shareholders of listed companies were 11.245 billion yuan. The scale of the repurchase funds will not have a material impact on the company’s operations, finances, or future development.

Repurchase price and quantity estimates

The maximum repurchase price in this repurchase is 48.88 yuan per share, which does not exceed 150% of the average trading price of the company’s stock over the 30 trading days prior to the board resolution. Based on the upper limit of 210 million yuan for repurchase funds and the upper limit price of 48.88 yuan per share, the estimated number of repurchased shares is approximately 4.0917 million shares, accounting for 0.50% of the company’s current total share capital (814 million shares). Based on the lower limit of 200 million yuan for repurchase funds, the estimated number of repurchased shares is approximately 4.2962 million shares, accounting for 0.53% of total share capital. The specific repurchase quantity will be determined based on the secondary market share price and the company’s financial condition.

Expected changes in share capital structure

If all repurchased shares are used for the employee stock ownership plan or equity incentives and are locked up, the company’s share capital structure will change as follows (based on the share capital structure as of March 3, 2026):

Based on the lower limit of 200 million yuan for repurchase (about 4.2962 million shares):

Based on the upper limit of 210 million yuan for repurchase (about 4.0917 million shares):

Note: The above changes have not yet taken into account the impact of other factors; the actual results shall be based on the data at the completion of the repurchase.

Implementation arrangements and risk notice

This repurchase plan was approved on March 3, 2026 at the 29th meeting of the board of directors of the eighth session, and therefore does not require submission to the shareholders’ meeting for approval. The implementation period will be within 12 months from the date of the board resolution. During this period, if the repurchase funds reach the upper or lower limit, or if the board decides to terminate the repurchase, the repurchase will expire early. The company emphasizes that during the repurchase period, the directors, senior management, and shareholders holding 5% or more of the shares currently have no plan to increase or decrease their holdings.

The announcement also highlights three major risks: first, if the share price continues to exceed 48.88 yuan per share or the funds cannot be raised as planned, the repurchase may not be implemented; second, if the employee stock ownership plan or equity incentives are not approved or the intended recipients forgo subscription, not all repurchased shares may be granted; third, major changes in the company’s operations, financial condition, or external environment may lead to changes to or termination of the plan. The company will disclose progress on a monthly basis during the repurchase period and disclose the results after the term expires.

Impact on the company

Ningbo Huaxiang states that this repurchase will not lead to any change in the company’s controlling interest or result in share distribution failing to meet listing requirements. All directors have committed that the repurchase will not impair the company’s ability to fulfill its debt obligations and its ongoing operating ability. Analysts point out that using the repurchase for employee incentives helps bind the interests of the core team and enhances the company’s long-term development momentum, and the use of own funds also demonstrates the company’s confidence in its financial soundness.

The company will implement the repurchase when the market conditions are favorable and will strictly comply with information disclosure obligations in accordance with regulatory requirements. Investors may follow subsequent announcements to learn about progress.

Statement: There are risks in the market; invest with caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s views. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, the actual announcements shall prevail. If you have any questions, please contact biz@staff.sina.com.cn.

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