Gao Proposes Eoptolink Share Buyback of Up to 1,000 Million Yuan

Key Facts

Gao Guangrong, Eoptolink’s chairman, controlling shareholder and actual controller, has proposed that the company buy back some of its A-shares, according to a disclosure published on October 15, 2026. The proposed funding ranges from 800 million to 1,000 million Chinese yuan. If approved and implemented, the purchases would be made through centralized competitive trading on the Shenzhen Stock Exchange. The disclosure places the proposal at an early stage, as the board has yet to approve a final, executable plan. The board said it would consider the proposal promptly, prepare a reasonable plan, and then complete the required approval and disclosure procedures.

The proposed funding range sets a floor of 800 million yuan and a ceiling of 1,000 million yuan, while the final amount to be implemented will be determined in the plan presented by the board. The disclosure does not specify a fixed share price; the proposed ceiling is 150% of the average trading price over the 30 trading days preceding the board’s decision on the buyback plan. The board will set the applicable price in the final plan. This means the cost of the buyback and the number of shares that can be acquired remain dependent on the approved price and the amount ultimately deployed. Reaching the funding ceiling is also not assured before the review and approvals are completed.

According to the disclosure, the plan may be funded with the company’s own funds and/or funds it raises. Under the proposal, the repurchased shares would be allocated to employee ownership or equity incentive programs. Gao said the initiative was based on his confidence in the company’s continued stable development and his assessment of its value. The disclosure linked the shares’ intended use to developing medium- and long-term incentive and restriction mechanisms, and motivating employees. The proposal therefore focuses on employee programs and related incentive mechanisms, while allocation details remain subject to the plan the board will prepare.

Implementation remains uncertain until the proposal completes the prescribed approval procedures and a final plan is issued. The board said the proposal cannot be implemented until those procedures are fulfilled, and that its feasibility and details have yet to be determined. Gao said he would push for a board meeting to review the buyback promptly and would vote in favor of the proposal. His support puts the proposal before the board for review, but does not replace a board decision or the other required procedures. The program’s value and terms will therefore become clear after the board reviews the plan and completes the approval and disclosure process.

The disclosure said Gao and parties acting in concert with him do not currently intend to increase or reduce their holdings in the company during the buyback period. It added that any subsequent plan involving those holdings would be disclosed in accordance with requirements. This provides context for the proposal during a period in which the company may buy A-shares, without changing the proposed plan’s terms or determining its outcome. Gao submitted the proposal as chairman, controlling shareholder and actual controller, while the company is responsible for preparing and reviewing the plan through its board. Regulatory approvals and actual implementation remain the decisive steps before the initiative becomes a series of purchases.

The initiative follows strong financial performance in the first half of 2026, according to the disclosure’s context, with the company recording growth in revenue and profits. The available disclosure here did not provide figures for that growth, so its scale cannot be determined from this information. The performance backdrop shows why the proposal coincides with Gao’s stated focus on the company’s continued stable development and his assessment of its value, the rationales he gave in the disclosure. The announcement offers no indication of the market’s response or the share price’s movement after the proposal was published. Investors’ next near-term focus is the board’s review of the proposal, alongside the scheduled quarterly results date.

Eoptolink is scheduled to release its third-quarter 2026 results on October 30, 2026, according to the company’s calendar. The date falls about two weeks after the disclosure of the proposal, making it a near-term opportunity to review the company’s latest quarterly results. The disclosure does not link the results release to the buyback decision, as the proposal follows a separate process that begins with board review and completion of approval procedures. The program’s size, purchase price and final use of the shares will remain pending until the company announces its executable plan. The scheduled date for the quarterly results is October 30.