Kingfa Sci & Tech adjusts repurchase price, cancels restricted shares

Kingfa Sci & Tech announced it will repurchase and cancel 1,786,669 restricted shares from its 2022 incentive plan, affecting 142 employees. This move, approved by the board of directors on September 12, 2025, will reduce the company's total share capital from 2,636,612,697 shares to 2,634,826,028 shares. The repurchase price has been adjusted to CNY 5.07 per share, down from CNY 5.17, following a 2024 annual cash dividend distribution of CNY 0.1 per share. The total funding for this repurchase, approximately CNY 9,058,411.83, will come from the company's own resources.

The shares are being repurchased from 70 employees who have resigned and 72 employees whose individual performance assessments did not meet the vesting criteria (D or E grades for 2024 performance), making their shares ineligible for release. Concurrently, the board approved the vesting of 37,600,462 restricted shares from the third tranche of the 2022 plan's initial grant and the second tranche of the reserved grant, benefiting 1,568 employees who met performance and service conditions.

The company's compensation and assessment committee and the supervisory board confirmed that the adjustments and repurchase comply with relevant regulations and will not negatively impact the company's operations, financial health, or control structure. This decision aims to uphold the integrity of the incentive plan and protect shareholder interests.