Secote to repurchase shares after employee stock plan misses targets

Suzhou Secote Precision Electronic Company Limited (SSE:603283) announced it will repurchase and cancel 4,129,580 shares related to its first phase employee stock ownership plan. This decision follows the failure to meet company-level performance targets, specifically the net profit growth rate after deducting non-recurring gains and losses for 2024, which was set at 15% based on 2023 figures. The company's audited net profits after adjustments for 2023 and 2024 were CNY 756,569,819.79 and CNY 640,816,934.68, respectively, failing to achieve the target.

The repurchase and cancellation are scheduled to be completed by November 24, 2025. The company's total share capital will decrease by 4,129,580 shares, bringing the total outstanding shares to 271,174,033. This action will not result in a change in the company's controlling shareholders or actual controllers, nor is it expected to have a significant impact on the company's operating performance, financial condition, or management team diligence.

The board of directors, supervisory board, and employee stock ownership plan holders' meeting approved the early termination of the plan and the related share repurchase and cancellation in August 2025. Creditors were notified, and no claims were made within the 45-day declaration period.