Lepu Medical to cancel repurchased shares, reduce capital

Lepu Medical Technology (Beijing) announced plans to cancel 37,215,700 repurchased shares, effectively reducing its registered capital. This action follows a shareholder vote on September 10, 2025, to re-designate shares previously bought back for employee incentive plans for capital reduction. The affected shares include 18,273,500 acquired on November 1, 2022, and 18,942,200 acquired on October 25, 2024. Creditors have 45 days from the announcement date to demand debt repayment or request guarantees.

The decision was made during the 2025 First Interim Shareholders' Meeting, where shareholders also approved the company's 2025 half-year profit distribution plan and a proposal to apply for the registration and issuance of medium-term notes. All resolutions passed with strong majority support.

Furthermore, the company's convertible bonds, Lepu Transfer 2, will temporarily suspend conversion from September 15, 2025, until the equity registration date for the 2025 half-year profit distribution. This measure aligns with the terms of the convertible bond prospectus regarding adjustments to the conversion price following corporate actions such as cash dividends. Normal trading of the bonds will continue during this suspension period.