Announcement on Repurchased Shares Cancellation

Ming Yang Smart Energy Group Ltd

24 September 2026

 

MING YANG SMART ENERGY GROUP LIMITED

(GDR under the symbol: "MYSE")

(a joint stock company established under the laws of the People's Republic of China with limited liability)

Announcement on Changing the Purpose of and Canceling the Repurchased Shares

On September 24, 2026, the Company held the 37th meeting of its third Board, at which the Proposal on Changing the Purpose of and Canceling the Repurchased Shares was deliberated and approved, agreeing to change the purpose of the 70,023,484 A-shares that have not yet been used in the first repurchase plan, which was deliberated and approved at the 39th meeting of the second Board, for cancellation and reduction of registered capital. This change in the purpose of and canceling the repurchased shares is still subject to deliberation by the Company's Shareholders' Meeting. The relevant matters are hereby announced as follows:

I. Basic information on the share repurchase

On May 4, 2023, the Company convened the 39th meeting of its second Board, at which the Proposal on the Plan for Share Repurchase through Centralized Bidding was deliberated and approved. The Company agreed to use its own funds, not exceeding RMB 1,000 million (inclusive) and not less than RMB 500 million (inclusive), to repurchase the Company's shares through centralized bidding for the purpose of implementing equity incentives. The repurchase period was set for no more than 12 months starting from May 4, 2023.

On June 16, 2023, the Company implemented the first share repurchase and disclosed the details of the first share repurchase on June 17, 2023.

On February 2, 2024, the Company completed the repurchase, having cumulatively repurchased 89,813,484 shares of the Company through centralized bidding, representing 3.95% of the Company's total share capital at that time (i.e., 2,271,759,206 shares). The highest repurchase price was RMB 17.99 per share, the lowest price was RMB 8.52 per share, and the total funds used were RMB 999,999,606.71 (excluding transaction fees).

On September 25, 2025, the Company held the 24th meeting of its third Board, at which the Proposal on Changing the Purpose of and Partially Canceling the Repurchased Shares was deliberated and approved. It was agreed that the Company would change the purpose of 89,813,484 shares in the first repurchase plan as follows: 10,000,000 shares designated for cancellation and a corresponding reduction in registered capital, and the remaining 79,813,484 shares for employee stock ownership plans or equity incentives. On December 9, 2025, the Company completed the cancellation procedures for the aforementioned 10,000,000 shares.

On December 26, 2025, the Company transferred 9,790,000 shares from the dedicated securities account for repurchase to the dedicated securities account for the "Ming Yang Smart Energy Group Limited - 2025 Employee Stock Ownership Plan" through a non-trade transfer.

II. Main changes in the purpose of the repurchased shares

Based on the Company's actual operating conditions and development strategy, and in order to enhance shareholder value, boost investor confidence, and protect the interests of the majority of investors, the Company proposes to change the purpose of the 70,023,484 unused A-shares in its dedicated securities account for repurchase from "for employee stock ownership plans or equity incentives" to "for cancellation and reduction of registered capital".

This change in the purpose of and canceling the repurchased shares is still subject to deliberation by the Company's Shareholders' Meeting. After approval by the Shareholders' Meeting, the Company will, in strict accordance with relevant regulations, apply to the Shanghai Stock Exchange and China Securities Depository and Clearing Corporation Limited to handle the procedures for canceling the repurchased shares and complete related matters such as notifying creditors.

III. Estimated changes in the Company's shareholding structure before and after changing the purpose of and canceling the repurchased shares

Upon completion of the cancellation of part of the repurchased shares, the total share capital of the Company will be changed from 2,261,496,706 shares to 2,191,473,222 shares. The changes in share capital are as follows:

Unit: share

Category	Before change	This change	After change
Restricted shares	0	0	0
Non-restricted shares	2,261,496,706	-70,023,484	2,191,473,222
Total	2,261,496,706	-70,023,484	2,191,473,222

Note: the above changes in the share capital structure shall be subject to the share capital structure table issued by the China Securities Depository and Clearing Corporation Limited Shanghai Branch after the completion of the cancellation.

IV. Analysis of the rationality, necessity, and feasibility of changing the purpose of and canceling the repurchased shares

This change in the purpose of repurchased shares by the Company complies with the relevant provisions of the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Rules on Share Repurchase by Listed Companies, the Shanghai Stock Exchange Self-Regulatory Guideline for Listed Companies No. 7 - Share Repurchase, and other relevant laws and regulations, as well as the Articles of Association. Changing the purpose of repurchased shares for cancellation and a corresponding reduction in registered capital is a decision made by the Company after careful consideration based on its operating conditions, aiming to safeguard the interests of the majority of investors and enhance investor confidence. After the cancellation is completed, the return on investment for shareholders will be further enhanced.

V. Impact of changing the purpose of and canceling the repurchased shares on the Company

The cancellation of part of the repurchased shares will not have a material impact on the Company's debt-servicing ability, going-concern ability, and shareholders' equity. It will not harm the interests of the Company and investors, especially small and medium-sized investors. It will not have a major adverse impact on the Company's future development, will not lead to a change in the Company's control, will not alter the Company's listing status, and the Company's equity distribution will still meet the listing requirements.

VI. Decision-making process for changing the purpose of and canceling the repurchased shares

On September 24, 2026, the Company held the 37th meeting of its third Board, at which the Proposal on Changing the Purpose of and Canceling the Repurchased Shares was deliberated and approved, and the said proposal is still to be submitted to the Company's Shareholders' Meeting for deliberation. The Board of the Company requests the Shareholders' Meeting to authorize the Company's management to handle the relevant procedures for share cancellation in accordance with relevant regulations, to amend the clauses in the Articles of Association concerning the amount of registered capital, total share capital, etc., based on the cancellation results, and to handle the industrial and commercial registration and filing.

Ming Yang Smart Energy Group Limited

September 24, 2026

 

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