PATEO CONNECT Technology (Shanghai) Corporation Announces Intention to Repurchase H Shares on the Open Market

Key Highlights

• The Board of PATEO CONNECT Technology (Shanghai) Corporation (“the Company”) has announced its intention to exercise a general repurchase mandate, allowing the repurchase of up to 10% of its H shares in issue as approved by shareholders at the extraordinary general meeting (EGM) on March 26, 2026.
• The maximum number of H shares that may be repurchased is 7,099,784.
• The actual repurchase price per H share will not exceed 5% (inclusive) above the average closing price of H shares for the five trading days immediately preceding each repurchase.
• The repurchase will be carried out on-market, from time to time, beginning after the Board meeting convened to approve the Group’s annual results and continuing until the conclusion of the next annual general meeting, or until the repurchase mandate is revoked or varied by shareholders.
• The Board considers the repurchase scheme to be in the best interests of the Company and its shareholders as a whole.

Details and Implications

The Company’s stated objectives for undertaking the share repurchase include promoting sustainable operation and development, safeguarding the long-term interests of investors, and maximizing shareholder value. The decision was reached after a comprehensive review of the Company’s current operations, financial position, and future development prospects.

In line with regulatory requirements, the implementation of the H Share Repurchase Scheme must comply with:

• The Repurchase Mandate approved at the EGM
• The Company’s Articles of Association
• The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
• The Codes on Takeovers and Mergers and Share Buy-backs, and other applicable laws and regulations

Depending on prevailing circumstances at the time of each repurchase (such as market conditions, the intended use of repurchased shares, and capital management needs), the Company may either cancel the repurchased shares or hold them as treasury shares.

Important Information for Shareholders

• The Board has expressly stated that it does not intend to exercise the Repurchase Mandate in a way that would cause the public float to fall below the minimum percentage required by the Hong Kong Stock Exchange.
• The Board also does not intend to trigger any obligation to make a general offer to shareholders under Rules 26 and 32 of the Takeovers Code.
• The execution of the Repurchase Mandate will be at the Board’s absolute discretion, subject to market conditions. There is no assurance regarding the timing, quantity, or price of any repurchases.
• Shareholders and potential investors are cautioned that the announcement itself does not guarantee actual share repurchases, and are advised to exercise caution when dealing in the Company’s shares.

Board Composition

As of the date of the announcement, the Board comprises Mr. Ying Zhenkai (Chairman), Mr. Zhang Fukai, Ms. Xu Zhenhui, and Mr. Lai Weilin as executive Directors; Mr. Zhang Yi as an employee Director; Mr. Wang Bihui, Mr. Ma Xiaoyong, and Mr. Gu Yuekun as non-executive Directors; and Dr. Li Yuanpeng, Mr. Pang Chunlin, Mr. Zhang Xiaoliang, Dr. Liu Gongshen, Ms. Xu Lili, Dr. Gu Jinyu, and Dr. Huang Xiaolin as independent non-executive Directors.

Potential Share Price Impact

The proposed on-market share repurchase is a potentially price-sensitive development. Share repurchases generally signal management’s confidence in the Company’s prospects and may provide support to the share price by reducing market supply. The intention to repurchase up to 10% of the issued H shares is a significant move which could positively influence the market’s perception of the Company’s value and future outlook.

However, as the actual execution of repurchases is subject to market conditions and the Board’s discretion, there is uncertainty regarding the extent and timing of any market impact. Investors should monitor further disclosures from the Company for updates on the progress of the repurchase scheme.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Shareholders and potential investors are urged to exercise caution when dealing in the Company’s shares and to seek professional advice if in doubt. The actual execution, quantity, and price of the share repurchase are subject to market conditions and Board discretion, and there is no guarantee that any repurchases will occur.

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