Riyue Heavy Industry to cancel shares after employee departures

Riyue Heavy Industry Co., Ltd. announced its decision to repurchase and cancel 75,000 restricted shares granted under its 2023 Restricted Stock Incentive Plan. This action follows the departure of three core technical and management personnel who no longer meet the incentive conditions. The company's board of directors approved the repurchase and cancellation on October 29, 2025.

The 75,000 shares, representing unvested portions of these employees' grants, will be repurchased and subsequently cancelled. Following this action, remaining unvested restricted shares from the initial grant will total 2,305,000 shares. The company anticipates completing the share cancellation by December 25, 2025, after which it will proceed with necessary industrial and commercial registration changes.

This repurchase and cancellation will lead to a reduction in the company’s registered capital. Riyue Heavy Industry confirmed this process complies with relevant laws and regulations and will not negatively impact the company's operations or shareholder interests.