Suzhou Saifen Technology plans to spend 40 million to 80 million yuan to repurchase shares for equity incentives and to maintain company value.

On March 31, 2026, Suzhou Saifen Technology Co., Ltd. (hereinafter referred to as “Suzhou Saifen Technology”) issued an announcement stating that the company’s board of directors has reviewed and approved a plan to repurchase shares via centralized bidding, intending to use its own funds to repurchase the company’s shares. The amount will be no less than RMB 40 million (inclusive) and no more than RMB 80 million (inclusive). The maximum repurchase price is RMB 28 per share. The repurchased shares will be used separately for equity incentive or employee shareholding plans, as well as for maintaining the company’s value.

Core Content of the Repurchase Plan

According to the announcement, the main parameters of this repurchase plan are as follows:

The shares repurchased this time will be divided into two parts according to their purposes: one part will be used for equity incentives or the employee shareholding plan, with an amount of RMB 20 million (inclusive) to RMB 40 million (inclusive); the other part will be used to maintain the company’s value, with the amount also RMB 20 million (inclusive) to RMB 40 million (inclusive). Based on the maximum repurchase price of RMB 28 per share, the corresponding number of shares to be repurchased for the two parts will be 0.7143 million shares to 1.4286 million shares, respectively, representing 0.17% - 0.34% of the company’s total share capital.

Arrangement of Fund Use and Time Limits

The announcement shows that the repurchased shares for maintaining the company’s value will be sold via centralized bidding no later than 12 months after the disclosure of the repurchase results and the shares movement announcement, and the sale must be completed within 3 years after the announcement; for the portion for equity incentives or the employee shareholding plan, the shares will be transferred in accordance with relevant regulations. If the company fails to use the repurchased shares for the above purposes within 3 years, the unused portion will be canceled.

In terms of the implementation period, the repurchase for maintaining the company’s value must be completed within 3 months after the board’s approval of the plan, while the portion for equity incentives or employee shareholding plans may be implemented within 12 months. During the repurchase period, if the company’s stock is consecutively suspended for more than 10 trading days due to major matters, the repurchase period will be extended.

Financial Impact and Shareholding Structure

As of September 30, 2025 (unaudited), Suzhou Saifen Technology’s total assets were RMB 1.427 billion, net assets attributable to shareholders of listed companies were RMB 1.320 billion, and current assets were RMB 859 million. Based on the maximum repurchase amount of RMB 80 million, the proportions to total assets, net assets, and current assets are 5.61%, 6.06%, and 9.32%, respectively. The company states that the repurchase funds will be paid at the appropriate time within the time limit with flexibility, and will not have a significant impact on daily operations, financial condition, or debt repayment ability (the asset-liability ratio for the same period is 6.80%).

After the repurchase is completed, the company’s equity structure will not undergo significant changes. Based on the maximum repurchase of 2.8571 million shares, the shareholding proportion held in the special securities account for repurchase will reach 0.69%, but the total share capital will still be 416 million shares. The share distribution will meet listing conditions, and control remains stable.

Risk Warning and Shareholder Developments

The company also highlights multiple repurchase risks, including: if the share price continues to exceed the maximum repurchase price leading to the plan being unable to be implemented; if major matters or operational changes lead to adjustments to the plan; if repurchased shares are not used on time and need to be canceled; adjustments to regulatory policies, etc. The company will implement the repurchase at an appropriate time based on market conditions and promptly disclose progress.

Regarding share reductions, the announcement indicates that among shareholders holding more than 5% of the company’s shares, Zhou Jinqing, Lu Min, and Director Zhang Min may have a share reduction plan in the next 3 months and 6 months; Jiangsu Shuquan Chengda Equity Investment Center (Limited Partnership) has not yet responded to the inquiries; and other directors and senior executives have no share reduction plans. Previously, the company’s shareholder Tonghua High-Tech had disclosed a plan to reduce its holdings by no more than 3% of total share capital from February 3, 2026 to May 2, 2026.

Suzhou Saifen Technology states that this repurchase is based on confidence in the company’s future development prospects and recognition of its value. It aims to maintain the company’s value and shareholders’ interests, while also improving a long-term incentive mechanism by deeply linking the interests of shareholders, the company, and employees to promote sustainable development. Market participants believe that, given the background of the company’s share price having a cumulative decline of 20% over 20 consecutive trading days (closing price as of March 23 was RMB 16.05 per share), the repurchase plan may help stabilize market expectations.

Disclaimer: There are risks in the market; investment is cautious. This article is automatically released by an AI large model based on third-party databases and does not represent Sina Finance’s views. Any information appearing in this article is only for reference and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

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Responsible editor: Xiao Lang Express