Securities code: China United Network Communications Limited(600050) securities abbreviation: China United Network Communications Limited(600050) Announcement No.: 2022012 China United Network Communications Limited(600050)
Announcement on the implementation results of share repurchase and share change
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
1、 Review and approval of repurchase and contents of repurchase plan
China United Network Communications Limited(600050) (hereinafter referred to as “the company”) convened the 24th Meeting of the 6th board of directors and the 17th meeting of the 6th board of supervisors on March 11, 2021, deliberated and adopted the proposal on repurchase of shares of the company by centralized bidding transaction. According to the relevant provisions of the articles of association, the share repurchase plan does not need to be submitted to the general meeting of shareholders for deliberation.
According to the report on repurchase of shares of the company by means of centralized bidding transaction (Announcement No.: 2021033) disclosed by the company on March 12, 2021, the main contents of the share repurchase scheme are as follows: the company is allowed to use its own funds of no less than RMB 1.25 billion and no more than RMB 2.5 billion by means of centralized bidding transaction, Buy back the company’s A-Shares at a price not exceeding RMB 6.5/share, which will be used to implement the equity incentive plan later. The specific number and amount of shares to be repurchased shall be subject to the actual number and amount of shares to be repurchased at the expiration of the repurchase period, The implementation period of this repurchase is no more than 12 months (from March 11, 2021 to March 10, 2022) from the date when the repurchase plan is considered and approved by the board of directors of the company.
2、 Implementation of repurchase
(I) on March 16, 2021, the company implemented share repurchase for the first time through centralized bidding transaction, and disclosed the announcement on first repurchase of company shares by centralized bidding transaction (Announcement No.: 2021035) on March 17, 2021.
(II) on March 10, 2022, the company completed the repurchase and has actually repurchased 513314385 shares of the company, accounting for about 1.7% of the total share capital of the company (30988131612 shares). The highest repurchase price is RMB 4.57/share, the lowest repurchase price is RMB 4.17/share, and the total amount paid is RMB 220475528050 (excluding stamp duty, transaction commission and other transaction expenses).
(III) there is no difference between the actual implementation of the company’s share repurchase plan and the share repurchase plan originally disclosed by the company, and the company has completed the repurchase according to the disclosed plan.
(IV) impact of the implementation of the share repurchase plan on the company
This time, the company repurchases the company’s A-share shares with its own funds and will be used to implement the equity incentive plan, which will help improve the corporate governance structure, establish and improve the company’s long-term incentive and restraint mechanism, ensure the realization of the company’s development strategy and business objectives, enhance the company’s core competitiveness and enhance the company’s overall value. This repurchase will not have a significant impact on the company’s operation, finance, R & D, profitability, debt performance ability and future development, will not affect the company’s listing status, will not lead to changes in the company’s control, and will not damage the interests of the company and all shareholders.
3、 Shares bought and sold by relevant entities during the repurchase period
On March 12, 2021, the company disclosed the repurchase of shares for the first time. For details, see the repurchase report on the repurchase of shares of the company by means of centralized bidding transaction (Announcement No.: 2021033).
The employee congress of the company elected Ms. Cheng LAN as the employee representative supervisor of the company in January 2022. Before taking the post of employee representative supervisor, Ms. Cheng LAN reduced her shareholding of 4000 shares of the company through the secondary market. There is no conflict of interest between Ms. Cheng and the repurchase plan, no matters that should be disclosed but not disclosed, and no insider trading and market manipulation. In addition to the above, the company’s directors, supervisors, senior managers, controlling shareholders, actual controllers and share repurchase proponents did not buy or sell the company’s shares during this period.
4、 Statement of changes in shares
Before and after the share repurchase, the changes of the company’s shares are as follows:
Nature of shares before and after this repurchase
Number of shares (shares) proportion (%)
Limited shares 4745882001.52324874000.8
Unlimited shares 3053726508798.53075564421299.2
Including: special securities account for repurchase – 5133143851.7
Total shares note 3101185328710030988131612100
Note: on April 9, 2021, the company implemented the second unlocking period of the first granted shares and the unlocking and listing of the first unlocking period of the reserved granted shares under the restricted stock incentive plan (218379125 shares), On September 16, 2021 and March 10, 2022, the repurchase and cancellation of 20460075 and 3261600 restricted shares of some incentive objects of the first phase of the restricted stock plan that have not yet met the unlocking conditions were completed respectively, reducing the total share capital of the company by 23721675 yuan. 5、 Disposal arrangement of repurchased shares
The total number of shares repurchased by the company this time is 513314385, which are currently placed in the special securities account for repurchase opened by the company and are intended to be used in the company’s restricted stock plan. If the company fails to implement the above purposes within 36 months from the date of disclosure of this announcement, the unused repurchased shares will be cancelled, which will be implemented in accordance with relevant laws, regulations and policies, And perform corresponding decision-making procedures.
It is hereby announced.
China United Network Communications Limited(600050) March 11, 2002
