Longzhu Technology plans to spend 16 million to 32 million yuan to repurchase shares to maintain company value and shareholders' rights

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On April 2, 2026, Longzhu Technology Group Co., Ltd. (hereinafter referred to as “Longzhu Technology”) issued a share repurchase report announcement, announcing plans to repurchase A-shares of the company through centralized bidding transactions, with a total repurchase fund range of 16 million to 32 million yuan, to maintain company value and shareholder rights and interests.

Core Content of the Repurchase Plan

According to the announcement, the type of shares to be repurchased is the company’s issued RMB ordinary shares (A-shares), with the purpose clearly defined as “necessary to maintain the value of the listed company and shareholder rights and interests.” Regarding the scale of repurchase, the proposed repurchase quantity is no less than 1 million shares (inclusive) and no more than 2 million shares (inclusive), accounting for 0.68%-1.35% of the company’s current total share capital. Based on a maximum repurchase price of 16.00 yuan per share, the total repurchase funds are estimated to be between 16 million yuan (inclusive) and 32 million yuan (inclusive).

The implementation period for the repurchase is no more than 3 months from the date (March 26, 2026) when the board of directors approves this share repurchase plan. If the number of shares repurchased reaches the upper limit within the period or the board of directors decides to terminate the repurchase, the period will end early. Additionally, the company will not conduct repurchases during major decision-making periods that could significantly impact the stock price and within 2 trading days after disclosure.

Funding Sources: Self-owned Funds Plus Special Loan

The funds for this repurchase come from the company’s own funds and a special stock repurchase loan provided by Industrial and Commercial Bank of China Limited Nanping Branch, with the special loan amount not exceeding 90% of the repurchase funds. The announcement states that the company has received a “Loan Commitment Letter” from ICBC Nanping Branch, with a maximum loan amount of no more than 28.8 million yuan, a loan term of 3 years, and an annual interest rate of 1.8% (subject to regulatory requirements at the time of disbursement). The commitment letter is valid from March 25, 2026, to November 25, 2026.

Financial Impact: Stable Operations, No Worries About Debt Repayment

Longzhu Technology states that as of December 31, 2025 (audited), the company’s total assets are 409 million yuan, owners’ equity attributable to the listed company’s shareholders is 304 million yuan, and current assets amount to 142 million yuan. Based on the maximum repurchase amount of 32 million yuan, this represents approximately 7.83% of total assets, 10.52% of net assets, and 22.60% of current assets. The company claims that its current financial condition is good, with strong debt repayment ability and sufficient operating funds. This repurchase will not significantly affect the company’s financial status, debt fulfillment, or ongoing operations.

Changes in Equity Structure and Follow-up Arrangements

Based on the maximum of 2 million shares and minimum of 1 million shares to be repurchased, the expected changes in the company’s equity structure after the repurchase are as follows:

Note: The data discrepancy is due to rounding.

The announcement clarifies that the repurchased shares will be sold via centralized bidding within 12 months after the disclosure of the repurchase result and share change announcement, and the sale will be completed within three years; if not sold within the period, the unsold shares will be canceled following proper procedures.

Risk Warning

Longzhu Technology also highlights several risks, including: the stock price continuously exceeding the repurchase price limit during the repurchase period, leading to partial or no implementation of the plan; significant changes in the company’s production, operation, or financial status causing the termination of the repurchase; failure to raise the special loan funds in time; regulatory policy adjustments affecting the repurchase terms; and uncertainties related to share sale or cancellation arrangements. The company states it will implement the repurchase based on market conditions and will fulfill disclosure obligations promptly.

Additionally, as of the disclosure date, the company’s directors, senior management, shareholders holding more than 5%, and their concerted parties have no plans to reduce holdings during the repurchase period. The company and its controlling shareholders or actual controllers have not had any relevant administrative or criminal penalties in the past 12 months.

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.

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Editor: Xiao Lang Express