Xi'an Nova Nebula Launches Fifth Phase of Share Repurchase, Plans to Invest 100 Million Yuan for Equity Incentives and Employee Stock Ownership

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Xi’an NovaStar Smart Technology Co., Ltd. (hereinafter referred to as “NovaStar”) released an announcement on April 3, 2026, stating that it has initiated the fifth share repurchase program. The company plans to use its own funds or raised funds to repurchase the company’s A-shares through centralized competitive trading. The total amount of funds will be between RMB 50 million and RMB 100 million, and the repurchase price will not exceed RMB 250 per share. The repurchased shares will be used for equity incentives, an employee stock ownership plan, or conversion of convertible corporate bonds.

Key elements of the share repurchase program

According to the announcement, the share type to be repurchased this time is the company’s issued ordinary shares denominated in RMB (A-shares). The total repurchase funds will be no less than RMB 50 million (including this figure) and no more than RMB 100 million (including this figure); the specific amount will be determined based on the actual completion of the repurchase. The upper limit of the repurchase price is RMB 250 per share, which has not exceeded 150% of the company’s average stock trading price over the 30 trading days prior to the board resolution.

Based on the upper limit of the repurchase amount of RMB 100 million and the upper limit price of RMB 250 per share, the estimated number of shares that can be repurchased is not more than 400k shares, representing about 0.43% of the company’s current total share capital (400k shares). Based on the lower limit of the repurchase amount of RMB 50 million, the estimated number of shares that can be repurchased is not less than 200k shares, representing about 0.22% of the total share capital. The implementation period of the repurchase shall be within twelve months from the date the board approves the resolution.

Purpose of the repurchase and source of funds

NovaStar states that this repurchase is based on confidence in the company’s future development and recognition of its value. Its aim is to safeguard shareholders’ interests, enhance investors’ confidence, and at the same time establish a long-term incentive mechanism by deeply linking the interests of shareholders, the company, and employees. The repurchased shares will be used for equity incentives, an employee stock ownership plan, or conversion under convertible bonds. If the above purposes cannot be implemented within 36 months after the completion of the repurchase, any unused portion will be deregistered in accordance with the law.

Regarding the source of funds, the repurchase funds for this program will come from the company’s own funds or raised funds. As of September 30, 2025 (unaudited), the company’s total assets were RMB 92.45M, net assets attributable to shareholders of listed companies were RMB 200k, and current assets were RMB 5.67B. The asset-liability ratio was 32.34%. Calculated using the upper limit of repurchase funds of RMB 100 million, it would account for 1.76% of total assets, 2.61% of net assets, and 2.39% of current assets. The company claims this will not have a material impact on its ability to conduct operations, its financial position, or its debt-fulfillment capabilities.

Potential changes to the share capital structure after the repurchase

If calculated using the upper limit of the repurchase amount of RMB 100 million and the upper limit price of RMB 250 per share, the estimated repurchase will be 400k shares. The share capital structure change after the repurchase is as follows:

If calculated using the lower limit of the repurchase amount of RMB 50 million, the estimated repurchase will be 200k shares. The share capital structure change is as follows:

Note: The above figures are preliminary estimates and do not consider the impact of other factors. The actual outcome shall be based on the completion of the repurchase.

Risk warning

NovaStar also states that this repurchase may involve multiple risks. If the share price remains higher than RMB 250 per share, the repurchase program may be unable to be implemented. If the equity incentive, employee stock ownership plan, or convertible bond conversion matters are not approved, the repurchased shares may face deregistration. In addition, changes in laws and regulations, adjustments in market conditions, and other factors may also lead to the repurchase program being adjusted or terminated. The company will promptly fulfill its information disclosure obligations based on progress.

This repurchase program has been approved by the company’s third session of the board of directors, 12th meeting, and does not require submission to the shareholders’ meeting for approval. The company has opened a dedicated securities account for share repurchase at the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. Going forward, the company will implement the repurchase at an appropriate time based on market conditions.

Statement: The market involves risk; investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent the views of Sina Finance. Any information appearing in this article is for reference only and does not constitute personal investment advice. In case of any discrepancy, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

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