Red Avenue New Materials to repurchase, cancel restricted shares

Red Avenue New Materials Group Co., Ltd. announced a decision to repurchase and cancel 25,002 restricted shares from two incentive recipients under the 2023 Restricted Stock Incentive Plan due to their departure. This action, approved by the fourth board of directors at its fifth meeting, will reduce the company's total share capital and registered capital by 25,002 yuan. Creditors have 45 days from the announcement to request debt settlement or guarantees, as per the "Company Law of the People's Republic of China."

Additionally, the board approved a 2026 annual estimate for daily related party transactions with Zhongce Rubber Group Co., Ltd. and its subsidiaries, totaling no more than 400 million yuan. This follows a 2025 estimate of 40 million yuan, with 34,174,000 yuan in actual transactions as of November 30, 2025.

The transactions, primarily product sales, are deemed necessary for normal operations and fair-priced, causing no detriment to the company or its shareholders. These actions demonstrate Red Avenue New Materials' adherence to its incentive plan while maintaining transparency in related party dealings.