China Railway Group Limited announced the repurchase and cancellation of certain restricted shares under its 2021 Restricted Share Incentive Scheme following a decision at the fifteenth meeting of the sixth session of its Board on 29 September 2025. According to the announcement, the performance evaluation indicators for the third unlocking period in 2024 were not met. Specifically, the weighted average return on net assets after deducting nonrecurring profit and loss and the compound growth rate of net profit after deductions fell short of the targets, and the economic value added (EVA) target was also not achieved.

A total of 54,786,990 restricted shares belonging to 678 participants are planned for repurchase and cancellation. These include 50,813,003 shares granted under the first grant and 3,973,987 shares from a reserved grant. Following completion scheduled for 24 November 2025, the company’s total number of shares will be reduced from 24,741,008,919 to 24,686,221,929.

The announcement states that this adjustment will not change China Railway Group Limited’s controlling shareholder or actual controller. The shareholding distribution will remain compliant with listing requirements, and the company will proceed with the relevant industrial and commercial registration formalities as required by law. The 2021 Restricted Incentive Scheme will continue to be implemented in accordance with regulatory guidelines.