DAFENG INDUSTRY(SH:603081) Zheng Quan Zhi Xing·2025-06-13 10:41Core Viewpoint - The company is implementing a buyback and cancellation of restricted stock due to the departure of certain incentive plan participants and unmet performance criteria for stock unlocks [1][2][3]. Group 1: Buyback and Cancellation Details - The company plans to repurchase and cancel a total of 3,132,600 shares of restricted stock, which includes 2,808,000 shares from the initial grant and 324,600 shares from reserved grants [3][4]. - The buyback is based on the provisions of the 2021 Restricted Stock Incentive Plan, which states that shares granted to departing employees cannot be unlocked and must be repurchased at the grant price [2][3]. - The decision for the buyback was approved in meetings held on November 28, 2024, by the company's board and relevant committees [1][4]. Group 2: Performance Criteria and Results - The company did not meet the performance criteria for the unlock of restricted stocks, with 2023 audited revenue at 1.938 billion and 2020 revenue at 2.509 billion, indicating a failure to meet the unlock conditions [3]. - The net profit for 2023 was 85 million, compared to 290 million in 2020, further confirming that the performance metrics were not achieved [3]. Group 3: Share Structure Changes - Following the buyback and cancellation, the company's share structure will change, with the number of restricted shares decreasing from 3,132,600 to 0, while the total shares will reduce from 436,525,468 to 433,392,868 [4]. - The company has established a dedicated securities account for the buyback process and plans to complete the cancellation by June 18, 2025 [4]. Group 4: Legal Compliance and Commitments - The company has confirmed that all procedures related to the buyback and cancellation comply with relevant laws and regulations, ensuring no harm to the rights of incentive plan participants or creditors [5]. - A legal opinion from Zhejiang Tian Ce Law Firm supports the company's compliance with the Company Law and Securities Law regarding the buyback process [5].