Core Viewpoint - The announcement reveals that three key shareholders of Kangwei Century (688426.SH) plan to reduce their holdings, which will not significantly impact the company's governance or ongoing operations [1][2]. Shareholder Reduction Plans - Shareholder Zhuang Zhihua intends to reduce up to 21,958 shares, representing 0.0195% of the total share capital - Shareholder Qi Yubai plans to reduce up to 11,311 shares, accounting for 0.0101% of the total share capital - Shareholder Yin Jianfeng aims to reduce up to 9,981 shares, which is 0.0089% of the total share capital - The total reduction by these three shareholders will not exceed 43,250 shares, or 0.0385% of the total share capital, with the reduction period set from February 5, 2026, to May 5, 2026 [1][2]. Shareholding Structure - As of the announcement date, Zhuang Zhihua holds 208,930 shares (0.1857% of total share capital), with 121,098 shares held indirectly through a management consulting partnership and 87,832 shares from a 2021 stock incentive plan - Qi Yubai holds 163,872 shares (0.1457% of total share capital), with 118,625 shares held indirectly and 45,247 shares from the 2021 stock incentive plan - Yin Jianfeng holds 116,818 shares (0.1038% of total share capital), with 76,894 shares held indirectly and 39,924 shares from the 2021 stock incentive plan [2]. Company Listing and Financials - Kangwei Century was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on October 25, 2022, with an issue price of 48.98 yuan per share and a total of 23,290,278 shares issued, of which 25% were publicly offered - The total funds raised amounted to 1,140.7578 million yuan, with a net amount of 1,054.3036 million yuan after deducting issuance costs, exceeding the original fundraising plan by 68.6277 million yuan - The funds are intended for projects related to medical devices, marketing network construction, molecular detection product R&D, and working capital [3][4].

Group 1 - The company has decided to terminate the 2024 Restricted Stock Incentive Plan due to significant changes in the macroeconomic environment and market conditions since its introduction, which rendered the performance assessment indicators ineffective [7][61] - The board of directors approved the termination on January 9, 2026, and the decision will be submitted for shareholder approval [5][10] - The plan's termination includes the cancellation of 1,590,600 shares that were granted but not vested, along with the associated documents [5][7][61] Group 2 - The company will continue to optimize its compensation system and internal performance evaluation mechanisms to ensure effective employee motivation and support long-term development [8][61] - The termination of the incentive plan is in compliance with relevant laws and regulations, ensuring no harm to the interests of the company and its shareholders [9][13] - The company will handle the related share payment expenses according to accounting standards, with the final impact on net profit to be determined by an audit report [9][10] Group 3 - The company has also approved the continued use of temporarily idle raised funds for cash management, with a maximum amount of up to RMB 150 million [16][18] - The funds will be used for purchasing safe, liquid, and principal-protected financial products, ensuring that the investment does not affect the normal operation of the fundraising projects [20][21] - The decision to manage idle funds was made to enhance the efficiency of fund usage and increase returns for shareholders [28][30]

Group 1 - The company will hold its first extraordinary general meeting of 2026 on January 28, 2026, at 14:40 [2][61] - The meeting will take place at the company's headquarters in Jiangsu Province [2][61] - Shareholders can vote through the Shanghai Stock Exchange's online voting system on the day of the meeting [3][5] Group 2 - The company plans to continue using up to RMB 150 million of temporarily idle raised funds for cash management, focusing on safe and liquid financial products [23][29] - The decision to use idle funds was approved by the board on January 9, 2026, and is valid for 12 months [24][35] - The company aims to enhance the efficiency of fund usage and increase returns for shareholders [28][34] Group 3 - The company has decided to terminate the 2024 restricted stock incentive plan due to changes in the macroeconomic environment and market conditions [41][59] - The termination of the plan includes the cancellation of 1,590,600 shares that were granted but not vested [45][59] - The board believes that this decision will not adversely affect the company's daily operations or shareholder interests [48][51]

Core Points - The company is holding its first extraordinary general meeting of shareholders in 2025 to discuss key proposals [1][4] - The meeting will address the completion of certain fundraising investment projects and the allocation of surplus funds to enhance liquidity [4][5] - The company plans to cancel its supervisory board and amend its articles of association, transferring supervisory responsibilities to the audit committee [6][7] Group 1: Meeting Procedures - Shareholders and their representatives must sign in 30 minutes before the meeting and present necessary identification documents [2] - Only authorized personnel, including shareholders, directors, and invited guests, are allowed to attend the meeting [3] - The meeting will be conducted with strict order, and any disruptive behavior will be addressed by staff [3][4] Group 2: Proposals - Proposal 1: The company intends to allocate surplus funds of 104.7854 million yuan from the "Medical Equipment and Biological Testing Reagent Industrialization Project" to enhance liquidity, having already invested 390.2415 million yuan out of the planned 486.6919 million yuan [5] - Proposal 2: The company proposes to abolish the supervisory board and allow the audit committee to assume its responsibilities, with necessary amendments to the articles of association [6][7] - Proposal 3: The company aims to revise and establish certain internal governance systems to align with the latest regulations and improve operational standards [7]

Summary of Key Points Core Viewpoint - The company has completed certain fundraising investment projects and plans to permanently supplement its working capital with the surplus funds from these projects [1][4]. Fundraising Basic Situation - The company issued 23,290,278 shares at a price of RMB 48.98 per share, raising a total of RMB 1,140.7578 million, with a net amount of RMB 1,054.3036 million after deducting issuance costs [2][3]. Investment Project Situation - The total planned investment for the fundraising projects was RMB 999.984 million, with RMB 985.6759 million allocated from the raised funds [2][3]. Surplus Funds Usage and Reasons - The surplus funds from the "Medical Devices and Biological Testing Reagent Industrialization Project" will be permanently used to supplement working capital, with the remaining funds to cover outstanding payments such as salaries and bonuses [3][4]. - The surplus was achieved through strict adherence to fundraising regulations, cost control, and efficient resource allocation during project implementation [3][4]. Approval Process - The decision to conclude the fundraising project and allocate surplus funds was approved by the company's board and will be submitted for shareholder meeting approval [4][6]. Supervisory Opinions - The supervisory board confirmed that the decision aligns with relevant regulations and is in the best interest of the company and its shareholders, ensuring no adverse impact on operations [4][6]. Sponsor's Verification Opinion - The sponsor, CITIC Securities, has no objections to the company's decision regarding the conclusion of the fundraising project and the allocation of surplus funds, confirming compliance with regulatory requirements [5][6].