ZTE Corporation Announces Share Repurchase

On the afternoon of December 12, ZTE Corporation announced that the company plans to repurchase its A-shares using its own funds through centralized bidding transactions, with the purpose of implementing the company’s employee stock ownership plan or equity incentive program. The total amount of funds allocated for this repurchase will be no less than 1 billion yuan and no more than 1.2 billion yuan (both figures inclusive).
According to the announcement, based on a maximum repurchase fund of 1.2 billion yuan and a maximum repurchase price of 63.09 yuan per A-share, the company is expected to repurchase approximately 19.0204 million shares, representing about 0.40% of the company’s current total share capital. The actual number of shares repurchased will be determined by the number of shares actually repurchased at the end of the repurchase period. The repurchase period will last for 12 months from the date on which the board of directors approves this repurchase plan.

As of midday today, ZTE’s A-shares have slightly declined by 0.32%, while its Hong Kong-listed shares have risen by 2.11%. Yesterday, ZTE’s A-shares hit the daily limit down, and its Hong Kong shares plunged by more than 13%.
ZTE issued an urgent announcement yesterday afternoon, stating that the company has taken note of recent media reports concerning an ongoing compliance investigation by the U.S. Foreign Corrupt Practices Act. The company is currently in communication with the U.S. Department of Justice regarding these matters and will firmly safeguard its rights and interests through legal and other appropriate means.
ZTE Corporation stated that the company has consistently been committed to comprehensively strengthening its compliance system and strives to build a compliance framework that sets industry standards. The company opposes all forms of corrupt practices and adopts a zero-tolerance policy toward any individuals potentially involved. Currently, the company’s production and operations are proceeding as normal.