Chairman Jiao Chengyao Proposes A-Share Buyback for Capital Reduction, Zhongchuang Zhiling Also Discloses Shareholding Increase Plan

Zhongchuang Zhiling's chairman Jiao Chengyao proposed on July 15, 2026 that the company use its own funds or self-raised funds to buy back A-shares via centralized bidding, with a total amount of no less than RMB 300 million and no more than RMB 400 million. Half of the repurchased shares will be cancelled to reduce registered capital, and the other half will be used for equity incentives or employee stock ownership plans. Jiao simultaneously disclosed a plan to increase his own holdings by RMB 5 million to 7.5 million in company A-shares.

Source: 上交所

The board of directors of Zhongchuang Zhiling (Zhengzhou) Industrial Technology Group Co., Ltd. announced on July 16, 2026 that chairman Jiao Chengyao had sent a letter to the company on July 15, proposing a buyback of A-shares.

The total buyback amount is set at no less than RMB 300 million (inclusive) and no more than RMB 400 million (inclusive), with funding coming from the company’s own capital or self-raised funds, including but not limited to special stock buyback loans. The buyback will be conducted through the Shanghai Stock Exchange trading system via centralized bidding, targeting the company’s RMB ordinary shares (A-shares).

In terms of use, 50% of the repurchased shares will be cancelled to reduce the registered capital, and the remaining 50% will be used for future equity incentives or employee stock ownership plans. If the shares allocated for incentive plans are not fully utilized within 36 months after the completion of the buyback, the unused portion will be cancelled. The upper limit of the buyback price is 150% of the average trading price of the company’s stock over the 30 trading days prior to the board’s resolution approving the buyback plan; the specific plan will be subject to the board’s final review. The entire buyback scheme must be approved by the shareholders’ meeting and executed within 12 months of approval.

Jiao proposed the buyback based on confidence in the company’s sustained stable development and recognition of its long-term investment value, aiming to implement the Shanghai Stock Exchange’s “Quality and Efficiency Improvement, Return Enhancement” 2.0 initiative and the company’s 2026 action plan, thereby safeguarding shareholder interests, boosting investor confidence, and improving the long-term incentive mechanism.

The announcement also noted that within six months before the proposal, Jiao had sold 1 million A-shares through centralized bidding on January 20-21, 2026, with no other transactions. Moreover, Jiao has a shareholding increase plan during the buyback period, intending to purchase A-shares worth RMB 5 million to 7.5 million via centralized bidding, without setting quantity or proportion ranges, using his own and self-raised funds. The increase plan will be implemented from six months after the completion of the previous share reduction to six months from the date the company discloses the increase plan. Details of the increase were disclosed in a separate announcement (No. 2026-038) on the same day.

Jiao Chengyao has pledged to actively push the board to review the buyback proposal and vote in favor. The company cautioned that the buyback is subject to approval procedures and remains uncertain, and investors should be aware of the risks. The board will promptly study and formulate a feasible buyback plan and fulfill information disclosure obligations in a timely manner.