Shandong Gold Mining Co., Ltd. (SD Gold) has approved a plan to repurchase and cancel part of its A shares via centralized bidding on the Shanghai Stock Exchange, according to a 16 October 2026 board announcement. The proposal, originally submitted by Chairman Wang Chenglong on 29 September 2026, still requires shareholder approval at the forthcoming general meeting.
Key terms of the buyback: • Funding: RMB300 million–RMB400 million drawn from self-owned and self-raised funds. • Price cap: No more than RMB48.57 per share, equal to 150% of the stock’s 30-day average prior to board approval. • Volume: Approximately 6.18–8.24 million shares, representing 0.13%–0.18% of current share capital. • Purpose: Complete cancellation of the repurchased shares, resulting in a corresponding reduction of registered capital. • Duration: Up to 12 months following shareholder consent, with early termination clauses linked to funding thresholds or board decisions.
Financial impact assessment: As of 30 June 2026, SD Gold reported total assets of RMB177.55 billion and net assets attributable to shareholders of RMB47.14 billion. If the maximum RMB400 million is deployed, repurchase funds would account for 0.23% of total assets, 0.85% of net assets and 0.98% of current assets, a level the board deems immaterial to operations, R&D, debt-servicing capacity or listing status.
Post-repurchase share structure (illustrative): • Current outstanding shares: 4.61 billion. • After minimum buyback: 4.60 billion. • After maximum buyback: 4.60 billion (rounded), with all repurchased shares set for cancellation.
Compliance and governance: The strategy committee endorsed the plan, which passed the board with eight votes in favour and none against or abstaining. Directors, senior management, controlling shareholders and parties acting in concert have neither traded the company’s shares within the preceding six months nor expressed intentions to alter holdings during the buyback window. SD Gold will open a dedicated securities account for the programme and will notify creditors in accordance with statutory capital-reduction procedures.
Risks highlighted include potential disapproval at the general meeting, creditor objections, share-price movements above the buyback cap and regulatory changes that could alter or halt implementation. SD Gold commits to ongoing disclosures should any adjustments or termination of the plan become necessary.
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