Guangdong Deguan Film New Materials Co., Ltd. Share Buyback Plan Passes Halfway Mark with Cumulative Spend of RMB 20.0564 Million

Guangdong Deguan Film New Materials Co., Ltd. (hereinafter referred to as "Deguan Film") recently disclosed an announcement on the progress of its share buyback. According to the announcement, as of December 31, 2025, the company had cumulatively repurchased 880,900 shares, accounting for 0.66% of its total share capital, with a total transaction amount of RMB 20.0564 million (excluding transaction fees), completing 100.28% of the lower limit of the buyback plan's funds.

The buyback plan is advancing steadily, with fund utilization approaching the lower limit

On April 28, 2025, Deguan Film convened its board of directors and board of supervisors, which reviewed and approved the share buyback plan, under which the company would use its own funds and a special buyback loan to repurchase its A-shares through centralized bidding trading, for the purpose of an employee stock ownership plan or equity incentive. The total buyback funds range from no less than RMB 20 million (inclusive) to no more than RMB 40 million (inclusive), and the upper limit of the buyback price was initially set at RMB 32.44 per share.

Subsequently, due to the company's implementation of equity distribution, the upper limit of the buyback price was adjusted twice: on June 13, 2025, it was adjusted to RMB 31.99 per share due to the 2024 annual equity distribution, and on December 19, 2025, it was further adjusted to RMB 31.79 per share due to the equity distribution for the first three quarters of 2025 (rounded to two decimal places).

Cumulative buyback of 880,900 shares by year-end, with an average transaction price of approximately RMB 22.77 per share

According to the announcement, as of December 31, 2025, the company had cumulatively repurchased 880,900 shares through its dedicated securities account for share buybacks by way of centralized bidding. The specific buyback data are as follows:

In terms of transaction prices, the actual transaction price range of this buyback was RMB 22.12 per share to RMB 23.38 per share, far below the adjusted upper limit of the buyback price of RMB 31.79 per share, indicating that the company completed part of the buyback at a relatively low market price level, with relatively high efficiency in fund utilization. Based on the total transaction amount, the company has invested approximately RMB 20.0564 million, accounting for 100.28% of the original planned lower fund limit of RMB 20 million, approaching completion of the "minimum" target of the buyback plan.

Compliance and follow-up arrangements

The announcement emphasized that this buyback strictly complied with the provisions of the Rules for Share Buybacks by Listed Companies, the Self-Regulatory Supervision Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 9 — Share Buybacks, and other regulations, and that the timing of the first buyback, trading sessions, and entrusted prices all met regulatory requirements and the company's buyback plan. The company did not conduct buybacks during sensitive periods of major events, the opening/closing call auction sessions, or other prohibited intervals, ensuring the compliance of its operations.

Regarding follow-up plans, Deguan Film stated that it will continue to implement the buyback based on market conditions within the remaining buyback period (within 12 months from April 28, 2025) and will timely disclose progress as required. Market analysts believe that the company may further increase its shareholdings within the fund ceiling of RMB 40 million depending on stock price fluctuations, so as to advance the implementation of the employee stock ownership plan or equity incentive.