Zhejiang Tailin Biological plans to spend 20 million to 40 million yuan to repurchase shares for an employee stock ownership plan

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On March 25, Zhejiang Tairen Biotechnology Co., Ltd. (hereinafter referred to as “Zhejiang Tairen Biotechnology”) held the 11th meeting of the fourth session of its board of directors, at which the share repurchase plan was approved. The company plans to use its own funds and/or raised funds to repurchase some shares of public shareholders by centralized competitive bidding, for an employee stock ownership plan. The total repurchase fund amount will range from RMB 20 million to RMB 40 million. The repurchase price will not exceed RMB 40.27 per share. The implementation period will be within 12 months from the date on which the board of directors approves the plan.

Key contents of the repurchase plan

According to the announcement, the type of shares to be repurchased in this repurchase is the company’s issued ordinary shares denominated in RMB (A shares). The purpose is clearly that the shares will be used for the employee stock ownership plan in full. If the shares are not utilized within 36 months after the completion of the repurchase, the unused portion will be cancelled in accordance with law.

In terms of repurchase scale, based on the upper limit of total funds of RMB 40 million and the upper limit price of RMB 40.27 per share, the company plans to repurchase approximately 993,300 shares, accounting for 0.82% of the company’s total share capital as of now. Based on the lower limit of total funds of RMB 20 million, the company plans to repurchase approximately 496,600 shares, accounting for 0.41% of the total share capital. The specific number of shares to be repurchased will be determined according to actual usage of funds.

The repurchase will be carried out through the Shenzhen Stock Exchange trading system via centralized competitive bidding. The instructed price may not be the intraday price limit for that day, and the repurchase does not involve instructions for opening call auctions, closing call auctions, or instructions on trading days without price rise/fall limits. The source of funds is the company’s own funds and/or raised funds. At present, the company has opened a dedicated securities account for repurchase at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.

Assessed changes in the equity structure

The announcement includes an assessment of the equity structure after the completion of the repurchase. It assumes that all repurchased shares will be used for the employee stock ownership plan and locked up. The specific changes are as follows:

Assuming the upper limit of repurchase funds of RMB 40 million (repurchasing 993.3 thousand shares)

Assuming the lower limit of repurchase funds of RMB 20 million (repurchasing 496.6 thousand shares)

Note: The above data are results of rounded estimations. The actual number of shares repurchased will be subject to the real repurchase amount at the end of the repurchase period.

Financial strength supporting the repurchase plan

As of December 31, 2025, Zhejiang Tairen Biotechnology’s total assets were RMB 95,897.26 million, shareholders’ equity attributable to shareholders was RMB 80,429.14 million, and current assets were RMB 54,984.98 million. The asset-liability ratio was 16.13%. If the upper limit repurchase funds of RMB 40 million are used, the amount would account for 4.17% of the company’s total assets, 4.97% of shareholders’ equity, and 7.27% of current assets.

The company stated that this repurchase will not have an adverse impact on normal production and operation, profitability, R&D investment, or the ability to fulfill debt obligations. It will also not lead to a change in the company’s control or affect its listing status. The board of directors believes that the repurchase plan reflects recognition of the company’s intrinsic value and confidence in its future development. It will help improve the long-term incentive mechanism, boost employees’ enthusiasm, and enhance shareholder value.

Risk warning

The announcement also highlights multiple risks, including: if the stock price continues to exceed the repurchase price upper limit of RMB 40.27 per share, the plan may fail to be implemented or may be implemented only partially; if the employee stock ownership plan cannot be passed through the deliberation process or if relevant personnel forgo subscribing, the repurchased shares may need to be cancelled; changes in the company’s operations, financial conditions, or the external environment may lead to amendments or termination of the plan; adjustments to regulatory policies or the need to adjust repurchase terms, etc.

The company emphasizes that it will implement the repurchase opportunistically within the repurchase period based on market conditions and promptly fulfill its information disclosure obligations. As of the date of disclosure of the announcement, the company has not received any clear plans for increase/decrease in holdings during the repurchase period and in the following six months from directors, senior management, controlling shareholders, and shareholders holding 5% or more of the shares.

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Editor: Xiao Lang Express