Liangxin Electrical ends employee stock plan early, citing high capital costs

Shanghai Liangxin Electrical Co., Ltd. confirmed its 2023 Business Decision Team No. 1 Employee Stock Ownership Plan completed the full reduction of its holdings in company shares. The plan, approved in January 2023, involved 5,710,000 shares transferred from the company's dedicated buyback account to the Employee Stock Plan's dedicated securities account on February 24, 2023. These shares represented 0.51% of the company's total share capital, with a transfer price of CNY 3.50 per share.

The Employee Stock Plan, initially set with a 36-month lock-up period, was prematurely terminated due to significant changes in the company's internal and external operating environment, as well as high capital occupation costs for participants. The decision to terminate early was made in a holder meeting on October 14, 2025, and subsequently approved by the compensation and assessment committee and the board of directors.

The shares held by the Employee Stock Plan were fully divested through centralized bidding on November 7, 2025, amounting to 5,710,000 shares, or 0.51% of the company's total share capital. All assets of the current Employee Stock Plan are now in monetary form, and the company will proceed with asset liquidation and distribution according to the plan's regulations.