Zhongtai chemical scraps incentive plan, cuts capital, aids subsidiary

Xinjiang Zhongtai Chemical Co., Ltd. has officially terminated its 2021 restricted stock incentive plan, citing unachieved performance targets for 2023 and 2024, changes in incentive recipients, and an administrative penalty from the China Securities Regulatory Commission in 2024. The company will repurchase and cancel 14.28m restricted shares from 873 incentive recipients for a total of 66.5655m yuan, with prices varying based on individual circumstances and the stock's market value. This action reduces the company's total share capital from 2,590,019,517 shares to 2,575,739,517 shares, prompting an amendment to its Articles of Association.

In a related development, the company will provide financial assistance of up to 800m yuan to its subsidiary, Xinjiang Zhongtai Jinhui Energy Co., Ltd., to support its operations and the 300,000-ton BDO project of its wholly-owned subsidiary, Jinhui Technology. This decision, approved by the board, aims to ensure Jinhui Energy's stable operation and project progress, with collateral provided through equity pledges.

These strategic changes were approved by the board on October 23, 2025, and will be submitted for shareholder approval on November 10, 2025. The company’s third-quarter financial report for 2025 shows a net loss attributable to shareholders of -179,227,449.96 yuan for the year to date.