Hengtong Optic-electric adjusts incentive plan, transfers subsidiary equity

Hengtong Optic-electric is transferring an 11.7334% stake in its subsidiary, Jiangsu Hengtong Huahai Technology, for a total of CNY 98,513.77 million. This transaction involves both related and unrelated parties, decreasing the company’s stake in the subsidiary to 64.2634% post-transaction. Concurrently, the company is adjusting its 2024 restricted stock incentive plan, repurchasing and canceling 342,400 restricted shares from nine departing employees at an adjusted price of CNY 7.41 per share, leading to a decrease in the company's registered capital.

Furthermore, Hengtong Optic-electric plans to provide guarantees totaling CNY 2,696,298.14 million, $51,775 million, and ZAR 380,239 million for its subsidiaries and associates in 2026, with the total guarantee amount representing 70.56% of its net assets. The company also intends to engage in commodity futures hedging for copper, aluminum, lead, tin, and rebar in 2026 to manage raw material price volatility, with an estimated maximum margin and premium of CNY 224,006 million.

These strategic moves aim to optimize the company’s capital structure, enhance risk management, and ensure the long-term healthy development of its business operations.