Xin Fengming Group to merge subsidiary, reduce capital

Xin Fengming Group will absorb its wholly-owned subsidiary, Tongxiang Zhongying Chemical Fiber Co., Ltd., effective December 31, 2025. This merger aims to reduce management costs and optimize resource allocation, with Xin Fengming Group assuming all assets, liabilities, and personnel. The merger will not impact Xin Fengming Group’s operating scope or registered capital.

Concurrently, Xin Fengming Group plans to cancel 5,388,291 shares from its 2022 share repurchase program. These shares, originally intended for equity incentives, will now be used to reduce registered capital, decreasing the total share capital from 1,524,555,643 shares to 1,519,167,352 shares. This adjustment necessitates revisions to Articles 6 and 21 of the company's Articles of Association.

These actions, approved by the board of directors on November 18, 2025, are subject to shareholder approval. The company asserts that these changes will not materially affect its financial condition or operating results, maintaining its listing status.