Huatai Securities cancels restricted shares after incentive plan failures

Huatai Securities Company Limited has announced the repurchase and cancellation of 438,495 A-share restricted shares. This action stems from 143 incentive plan participants failing to meet personal performance conditions or having their employment with the company terminated. The repurchase price, adjusted for a 2024 annual equity distribution, is CNY 6.85 per share, reduced from the initial CNY 7.22 per share. The cancellation is expected to be completed by September 11, 2025.

The decision was approved by the company's Sixth Board of Directors and Sixth Board of Supervisors on April 29, 2025, followed by shareholder approval at the 2024 Annual General Meeting and the First A-share and H-share Class Meetings in 2025 on June 20, 2025. The price adjustment was approved by the Board of Directors and Board of Supervisors on August 29, 2025. King & Wood Mallesons (Nanjing) confirmed that the procedures and disclosures comply with relevant regulations.

Following the cancellation, the total number of A-shares will decrease by 438,495, resulting in a new total of 7,307,818,106 A-shares, maintaining an 80.96% proportion of the total share capital. The number of restricted shares will decrease to 1,060,000, representing 0.01% of the total share capital, down from 1,498,495 shares (0.02%).