Royal Group completes share repurchase and cancellation

Royal Group (SZSE:002329) has completed the repurchase and cancellation of 20,640,630 shares from Xu Leilei, related to performance commitments tied to the 2015 acquisition of Beijing Shengshi Jiaoyang. This action reduces the company's total share capital from 869,049,335 shares to 848,408,705 shares. The repurchase was executed at a price of CNY 1.00 per share. The share cancellation addresses unmet performance targets for the 2017 fiscal year and follows a court ruling related to compensation obligations. As of this announcement, 1,764,670 remaining shares subject to repurchase are still encumbered by pledges. CITIC Securities, acting as the financial advisor, has verified the legitimacy and compliance of the repurchase and cancellation process. The shareholding ratio of controlling shareholder Huang Jiadi increased to 25.38% following cancellation.