Wuchan Zhongda Chairman proposes to repurchase shares worth 200 million to 400 million yuan

(Source: Caixin News)

          The repurchased shares are intended to be used to maintain the company’s value and protect the shareholders’ rights and interests. The repurchased shares will be disposed of in accordance with regulatory rules. Any portion that is not sold within the prescribed period will be legally canceled.

On March 25, Wuchan Zhongda (600704.SH) issued an announcement stating that on March 25, 2026, the company received a letter from Chairman Chen Xin titled “Letter on the Proposal to Repurchase Company Shares by Wuchan Zhongda Group Co., Ltd.” According to the proposal, the company plans to repurchase a portion of its shares through centralized competitive bidding. The total amount of funds for the share repurchase will be RMB 200 million to RMB 400 million.

The announcement shows that the type of shares to be repurchased is the company’s publicly issued Renminbi ordinary shares (A-shares). The repurchase method will be to repurchase shares via the Shanghai Stock Exchange’s trading system using centralized competitive bidding. The maximum repurchase price shall not exceed 150% of the average trading price of the company’s shares for the 30 trading days prior to the date on which the board of directors approved the resolution on the share repurchase plan.

With respect to the purpose of the repurchase, the announcement clearly states that, in order to safeguard the interests of all shareholders of the company, enhance investors’ confidence, and stabilize and improve the company’s value, this repurchase is carried out based on confidence in the company’s future development. At the same time, the repurchased shares are intended to be used to maintain the company’s value and protect shareholders’ rights and interests. The repurchased shares will be disposed of in accordance with regulatory rules, and any portion that is not sold within the prescribed period will be legally canceled.

It is noteworthy that the funds for this repurchase will come from the company’s own funds, and the repurchase period will be within 3 months from the date the board of directors approves the share repurchase plan. Chairman Chen Xin has committed to actively promoting the company to hold a board meeting to deliberate the share repurchase matter as soon as possible, and to vote in favor of the company’s share repurchase proposal at the board meeting.

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