Gongniu Group to cancel shares after employee departures

Shanghai Renying Law Firm has issued a legal opinion confirming that Gongniu Group's repurchase and cancellation of a portion of restricted shares complies with relevant laws and regulations. This action stems from the company's 2023, 2024, and 2025 restricted stock incentive plans, where 98 employees lost their incentive qualifications due to resignation. The total number of restricted shares to be repurchased and cancelled is 614,260.

The repurchased shares include 119,365 shares from the 2023 plan at CNY 20.87 per share, 290,775 shares from the 2024 plan at CNY 23.23 per share, and 204,120 shares from the 2025 plan at CNY 23.84 per share. These repurchases have been approved by the board of directors and supervisors across several meetings. The company disclosed the repurchase and cancellation of restricted shares to creditors on October 31, 2025, and no creditor claims were received within the 45-day public notice period.

Following the cancellation of the 614,260 restricted shares, the company's total share capital will decrease from 1,808,587,688 shares to 1,807,973,428 shares. This adjustment will not alter the company's controlling shareholder or actual controller, nor will it impact its listing status. The cancellation is expected to be completed by December 25, 2025.