Hytera's controlling shareholder transfers shares, adjusts equity

Hytera Communications' controlling shareholder, Chen Qingzhou, has agreed to transfer 90,967,400 unrestricted shares, representing 5.0020% of the company's total share capital, to Zhuhai Hengshun Asset Management Co., Ltd. for CNY 1,017,015,532. This transaction will reduce Chen Qingzhou's stake from 41.58% to 34.20%, while Zhuhai Hengshun Asset Management Co., Ltd. will become a 5.00% shareholder.

This follows previous equity changes, including a stock repurchase in December 2021 which increased Chen Qingzhou's passive stake, and a subsequent reduction due to large-block and centralized bidding transactions in September 2022. Additionally, stock option exercises from March 2023 to March 2025 diluted the controlling shareholder's stake. The transaction does not trigger a tender offer and will not change the company's controlling shareholder or actual controller.

In a separate announcement, Chen Qingzhou also pledged 5,000,000 shares to Shenzhen Hi-Tech Investment Guarantee Co., Ltd. to support the company's production and operations, while releasing 44,200,000 pledged shares from CITIC Financial Asset Management Co., Ltd. The company's subsidiary, Shenzhen Nuosat Technology Co., Ltd., provided collateral for a CNY 150,000,000 credit line for Hytera, bringing the total external guarantees to CNY 992,156,400.