Red Avenue New Materials to cancel restricted shares from incentive plan

Red Avenue New Materials Group Co., Ltd. has announced the repurchase and cancellation of 33,334 restricted shares from two incentive recipients who are no longer eligible due to departure. This action is part of the 2023 Restricted Stock Incentive Plan, with the repurchase price adjusted from 14.88 yuan per share to 13.54 yuan per share following equity distributions.

The company's board of directors and supervisory board approved the repurchase and cancellation on August 26, 2025. Creditors were notified on August 28, 2025, and the public notice period expired without any claims. The repurchased shares are expected to be cancelled by December 2, 2025, reducing the company’s total share capital from 616,141,306 shares to 616,107,972 shares.

Shanghai Allbright Law Offices issued a legal opinion confirming that the procedures comply with relevant laws and regulations. Post-cancellation, 1,634,584 restricted shares will remain under the incentive plan, and Red Avenue New Materials will proceed with necessary registration changes for the capital reduction.