Avic Heavy Machinery ends stock plan, boosts subsidiary investment

Avic Heavy Machinery has terminated its A-share Restricted Stock Incentive Plan (Phase Two) due to changes in its operating environment and a mismatch between anticipated performance and incentive targets. This results in the repurchase and cancellation of 11,054,000 restricted shares at their original grant prices of 13.23 yuan and 12.14 yuan per share, totaling 145,880,400 yuan from the company's own funds. This will reduce the company's total share capital from 1,563,548,153 shares to 1,552,494,153 shares.

Concurrently, Avic Heavy Machinery plans to invest an additional 85,500,000 yuan of its own funds into its controlled subsidiary, AVIC Tiandi Laser Technology Co., Ltd. This capital injection, a related-party transaction, aims to bolster the Laser Company's R&D capabilities in additive manufacturing and secure essential infrastructure. Additionally, the company is absorbing its wholly-owned subsidiary, Avic Metal Material Physical and Chemical Testing Technology Co., Ltd., to optimize management and enhance operational efficiency.

Avic Heavy Machinery’s directors and senior management will collectively increase their holdings in the company's A-shares by an amount between 4,300,000 yuan and 8,600,000 yuan over the next 12 months. This move, intended to stabilize the stock price and demonstrate commitment to shareholder value, will be executed through centralized bidding on the Shanghai Stock Exchange, using their own or self-raised funds.