Wuxi Xinjie Electric plans to spend 30 million to 50 million yuan to repurchase shares for employee stock ownership plans or equity incentives

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On March 26, 2026, Wuxi Xinjie Electric Co., Ltd. (hereinafter referred to as “Xinjie Electric”) issued a buyback report, announcing its plan to repurchase company shares using its own funds through centralized bidding transactions, with a total buyback amount of 30 million to 50 million yuan, for future employee stock ownership plans or equity incentives. If the repurchased shares are not fully used for the above purposes within 36 months after completion, the unused portion will be canceled following proper procedures.

Core Elements of the Buyback Plan

According to the announcement, the main contents of this buyback plan are as follows:

• Buyback Price: No more than 80.00 yuan per share (inclusive), which does not exceed 150% of the average stock trading price over the 30 trading days prior to the board resolution approving the buyback.
• Buyback Quantity: Based on the price ceiling, estimated to be between 375k and 625k shares, accounting for approximately 0.24% to 0.40% of the company’s current total share capital.
• Buyback Period: Within 12 months from the date the board approves the plan (March 23, 2026), i.e., until March 22, 2027.
• Buyback Method: Conducted through Shanghai Stock Exchange via centralized bidding.
• Funding Source: The company’s own funds.

Funding Source and Financial Impact Analysis

Xinjie Electric states that the buyback funds come from the company’s own capital. As of September 30, 2025, the company’s total assets were 375k yuan, net assets attributable to shareholders of the listed company were 625k yuan, and current assets were 3.63B yuan. Using the maximum buyback amount of 50 million yuan, the buyback funds account for approximately 1.38% of total assets, 1.90% of net assets, and 1.76% of current assets. The announcement states that this buyback will not have a significant impact on the company’s daily operations, financial condition, debt repayment ability, or future development.

Changes in Equity Structure and Incentive Intent

The announcement shows that after the buyback is completed, the company’s equity structure will undergo slight changes. Based on the lower limit of 375k shares, the shares in the dedicated buyback account will increase from the current 12,443 shares (0.01% of total share capital) to 387,443 shares (0.25%); based on the upper limit of 625k shares, the account will hold 637,443 shares (0.41%). The company’s total share capital remains at 157.1383 million shares, and the distribution of shares remains compliant with listing requirements, with no change in control rights.

Xinjie Electric points out that the shares repurchased for employee stock ownership plans or equity incentives aim to improve the company’s long-term incentive mechanism, motivate management and core backbone personnel, enhance team cohesion and competitiveness, and promote the company’s sustainable long-term development.

Risk Warning and Shareholder Commitment

Xinjie Electric highlights several potential risks in the announcement, including: if the stock price remains above the 80 yuan per share cap during the buyback period, the plan may not be implemented; failure to raise the buyback funds may result in partial or full failure of the plan; if the repurchased shares are not used for incentives within 36 months, the unused portion will be canceled. The company states it will implement the buyback based on market conditions and fulfill disclosure obligations promptly.

Additionally, the company clarifies that directors, senior management, controlling shareholders, actual controllers, and shareholders holding more than 5% have no clear plans to reduce holdings within the next 3 or 6 months. If any reduction occurs during the buyback period, it will strictly comply with regulatory requirements and disclose relevant information.

Follow-up Arrangements

The company has opened a dedicated securities account for the buyback (Account name: Wuxi Xinjie Electric Co., Ltd. Buyback Dedicated Securities Account, Number: B886371589), which is solely used for this buyback. Xinjie Electric states it will advance the buyback according to market conditions within the designated period and disclose progress in a timely manner.

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Editor: Xiao Lang Express