Longsheng Technology plans to cancel 1.4746 million repurchased shares, with a registered capital reduction of 14.7455 million yuan.

[Finance News] On March 19, Wuxi Longsheng Technology Co., Ltd. (Stock Code: 300680, Stock Name: Longsheng Technology) announced that the company plans to cancel 1,474,600 shares repurchased, resulting in the company’s registered capital decreasing from 227.7161 million yuan to 226.2415 million yuan, a reduction of about 0.65%. The proposal has been approved by the 13th meeting of the company’s fifth board of directors and is now subject to shareholder approval.

The announcement states that this cancellation is due to the company’s 2023 share repurchase plan. In April 2023, Longsheng Technology launched a share repurchase program, planning to use 50 million to 100 million yuan of its own funds to buy back company shares for employee stock ownership plans or equity incentives. As of June 5, 2023, the company had repurchased a total of 2,760,500 shares, accounting for 1.19% of the total share capital at that time, with a total transaction amount of 51.9918 million yuan, and an average repurchase price of about 18.83 yuan per share.

Details of the share repurchase in 2023:

According to the announcement, after completing the vesting of the 2023 restricted stock incentive plan, the remaining 1,474,600 repurchased shares, which are about to reach three years and currently have no usage plan, will be canceled in accordance with regulations. After the cancellation, the company’s total share capital will decrease from 227,716,078 shares to 226,241,453 shares, and registered capital will decrease by 1.4746 million yuan.

To accommodate the change in registered capital, the company plans to amend relevant clauses in the Articles of Association:

The announcement emphasizes that aside from the above clauses, other content of the Articles of Association remains unchanged. The revision is subject to approval by the shareholders’ meeting and will be followed by the company’s management handling registration and other related procedures.

Longsheng Technology states that the cancellation of repurchased shares complies with the “Company Law,” “Rules for Share Repurchase of Listed Companies,” and other relevant regulations. It will not have a significant impact on the company’s daily operations nor alter the company’s main business structure. After the cancellation, the company’s equity structure will be adjusted accordingly, which is beneficial for improving earnings per share.

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