Tonghua Dongbao moves forward with share repurchase for employee incentives

Tonghua Dongbao Pharmaceutical Co., Ltd. announced progress on its share repurchase plan, initially disclosed on October 18, 2025. As of November 2025, the company had cumulatively repurchased 3,000,000 shares through centralized competitive bidding transactions. This represents 0.15% of its total share capital, with a total expenditure of CNY 27,574,286.00 (excluding transaction fees). The highest price paid per share was CNY 9.33, and the lowest was CNY 9.00. The repurchased shares are intended for an employee stock ownership plan and/or equity incentives.

In a related development, the company's research and production system employee stock ownership plan was approved by the Eleventh Board of Directors' Twentieth Meeting on November 28, 2025, and also by the Ninth Board of Supervisors' Fifth Meeting on the same date. The plan, which is subject to further review by the shareholders' meeting, involves a maximum of 7,000,000 shares, representing 0.357% of the total share capital as of the announcement date of the draft plan.

Beijing Zhong Lun Law Firm issued a legal opinion confirming that Tonghua Dongbao possesses the requisite qualifications to implement the employee stock ownership plan, and that the plan aligns with relevant regulatory guidelines. The legal opinion also confirmed that the company has completed the necessary preliminary legal procedures but still requires shareholder approval to fully implement the plan.