Century Huatong board approves share cancellation for capital reduction

Zhejiang Century Huatong Group announced its board of directors unanimously approved a proposal to change the use of repurchased shares to cancellation, thereby reducing the company's registered capital. The decision was made during the sixteenth meeting of the sixth session on December 5, 2025.

The board agreed to cancel 1,280,000 shares, which were initially repurchased under a scheme approved on March 1, 2022. These shares were repurchased for purposes including equity incentive plans, employee stock ownership plans, or capital reduction. This move will now exclusively be for cancellation and capital reduction.

The decision, passed with 9 votes in favor, 0 against, and 0 abstentions, aims to protect shareholder interests and enhance long-term investment value. This change aligns with the "Company Law of the People's Republic of China" and other relevant regulations regarding share repurchases. The board also authorized management to handle all necessary procedures for the share cancellation, reduction of registered capital, and amendments to the company's articles of association.

This matter requires further approval by a special resolution at the company's Sixth Extraordinary General Meeting of Shareholders for 2025. The board has proposed to convene this meeting on December 22, 2025, at 14:30, to seek shareholder endorsement for the capital reduction and share cancellation.