Shimge Pump plans capital reduction via share repurchase cancellation

Shimge Pump Industry Group (SZSE:002532) announced that its board of directors approved a resolution to change the purpose of repurchased shares to cancellation and reduction of registered capital. The company intends to cancel 23,148,000 shares, which were previously repurchased under a scheme approved on July 6, 2022, originally designated for employee stock ownership or equity incentive plans. This action is aimed at boosting investor confidence and improving long-term investment value, and will decrease the company's total share capital from 4,651,885,415 shares to 4,628,737,415 shares.

The proposed share cancellation is subject to approval by shareholders at an extraordinary general meeting. This decision aligns with recent revisions to the Company Law of the People's Republic of China (2023 Revision) and other related regulations, leading to comprehensive amendments to the company’s articles of association. The amendments also remove the supervisory board, transferring its responsibilities to the board of directors' audit committee.

The company will hold its second extraordinary general meeting of 2025 on November 10, 2025, to seek shareholder approval for these changes, including the articles of association revisions, amendments to various governance documents, and the election of independent directors. These measures are designed to comply with new regulatory requirements and refine the corporate governance framework.