Innovation New Material Technology sees ownership shift after share cancellation

Shandong Innovation Group Co., Ltd., along with its concerted parties, has reduced its stake in Innovation New Material Technology Co., Ltd. Their aggregate shareholding decreased from 54.11% to 49.81%, a 4.29% reduction that crossed the 50% threshold. This change resulted from the company's repurchase and cancellation of 351,363,722 shares as part of a performance compensation plan related to a major asset restructuring.

The performance compensation was triggered by Shandong Innovation Metal Technology Co., Ltd.'s failure to meet its cumulative profit forecast by the end of 2024. The net profits after non-recurring gains and losses attributable to the parent company for 2022, 2023, and 2024 totaled yuan 302,627.41, achieving 82.62% of the cumulative performance commitment. The repurchased shares are scheduled for cancellation on September 1, 2025.

As a result of this reduction, Beijing Hualian Group Investment Holdings Co., Ltd. and its concerted party Beijing Hualian Hypermarket Co., Ltd., whose holdings remained unchanged, saw their collective stake passively increase from 4.81% to 5.26%, crossing the 5% threshold. This equity change does not alter the company's controlling shareholder or actual controller.