Tenglong Shares announced that its board of directors has approved the adjustment of the usage of repurchased shares from "maintaining company value and shareholder equity — sale" to "implementation of an employee stock ownership plan." The company previously launched a repurchase program on February 5, 2024, planning to repurchase shares worth 40 million to 80 million yuan at a price not exceeding 12.8 yuan per share. As of April 30, 2024, it had cumulatively repurchased 5.3 million shares, accounting for 1.08 percent of the company's total share capital, with a total payment of 40.7055 million yuan. This adjustment is intended to support the company's planned second-phase employee stock ownership plan, in order to improve governance structure and establish a long-term incentive mechanism. Apart from the change in usage, other matters of the repurchase program remain unchanged.
Changzhou Tenglong Auto PartsAdjusting repurchased shares to employee stock ownership plan supports long-term incentives, a positive capital allocation move.
