ZCZL Industrial Technology Group Company Limited has approved a proposal to repurchase part of its outstanding A shares through centralized bidding on the Shanghai Stock Exchange.

The board resolution passed on 31 July 2026 sets a repurchase budget between RMB300 million and RMB400 million, to be funded by the company’s internal resources or self-raised funds. The maximum purchase price is capped at RMB21.00 per share, equivalent to no more than 150% of the average trading price over the 30 trading days preceding board approval.

Based on the stated price ceiling, the company expects to buy back approximately 14.29 million to 19.05 million A shares, representing 0.80%–1.07% of total issued share capital. Half of the repurchased shares will be cancelled, reducing registered capital; the remaining half is earmarked for future equity incentive schemes or employee share ownership plans.

The buyback window will run for up to 12 months following approval at the forthcoming shareholders’ general meeting as well as separate A-share and H-share class meetings. Early termination is possible if the maximum allocation is reached, a board resolution is passed after the minimum threshold is met, or if significant changes in operations or regulations arise.

Assuming cancellation of 50% of the repurchased shares, total share count would decline from 1.79 billion to between 1.78 billion and 1.78 billion shares.

Financially, the proposed maximum outlay accounts for 0.79% of total assets (RMB50.43 billion), 1.60% of net assets attributable to shareholders (RMB25.05 billion), and 1.13% of current assets (RMB35.31 billion) as of 31 March 2026. The board states the transaction will not materially affect operations, debt-servicing capability, or listing status, nor will it trigger a change of control.

The controlling shareholder and shareholders holding 5% or more of shares have neither traded in the company’s stock within the past six months nor plan to adjust their positions during the repurchase period.

Key risks disclosed include potential failure to secure shareholder approval, market prices exceeding the buyback ceiling, creditor demands arising from capital reduction, possible delays in deploying shares for incentive plans, and operational or regulatory changes that could halt the program.

Shareholders will receive a circular with full details ahead of the required meetings. The company advises investors to exercise caution when dealing in its securities.