Kingfa Sci & Tech to repurchase and cancel restricted shares

Kingfa Sci & Tech is repurchasing and canceling 1,786,669 restricted shares from 142 incentive plan participants. This action stems from 70 participants’ departures and 72 participants' failure to meet individual performance targets under the 2022 Restricted Stock Incentive Plan. The repurchase price has been adjusted to CNY 5.07 per share.

The company's board, supervisory committee, and a temporary shareholders’ meeting approved the repurchase and price adjustment between September 12 and October 31, 2025. Following the cancellation of these shares, Kingfa Sci & Tech's total share capital will decrease by 1,786,669 shares, with the number of restricted shares becoming zero. The company has also initiated creditor notification procedures, with no objections received to date.

The cancellation of these restricted shares is projected to be completed by December 30, 2025. This process aligns with regulatory requirements and the company's incentive plan.