The controlling shareholder of Kennede Electronics Mfg. (002723.SZ) fulfills commitments actively and promptly repurchases the reduced shares in full.

On the evening of December 19th, Kennede Electronics Mfg. (002723.SZ) issued an announcement, stating that its controlling shareholder, Shenzhen Huaxin Chuali Technology Industrial Development Co., Ltd. (referred to as "Huaxin Chuali"), repurchased 953,000 shares through self-raised funds in a block transaction on December 18th, 2023. The income generated from this repurchase, amounting to 733,930 yuan, has been paid to the listed company. Previously, on December 15th, Kennede Electronics Mfg. announced that Huaxin Chuali's reduction of 953,000 shares on September 4th, 2023, as part of fulfilling its debt repayment obligations, violated the requirements of the China Securities Regulatory Commission's "Further Regulation on Share Reduction Behavior". Huaxin Chuali apologized for the improper reduction and promised to repurchase the aforementioned illegally reduced shares as soon as possible, with all resulting income going to the listed company. Within just 2 trading days following the apology and commitment announcement, Huaxin Chuali fulfilled its promise to repurchase the shares, actively and quickly eliminating the impact of the violation. This demonstrates Kennede Electronics Mfg. and its controlling shareholder's adherence to the "new rules on share reduction" and their determination to safeguard the interests of the company and all shareholders. According to publicly available information, in 2019, Huaxin Chuali's holdings of Kennede Electronics Mfg. shares were frozen due to debt disputes, and in June 2022, the freeze was completely lifted. Previous media reports have stated that the full release of Huaxin Chuali's holdings was the result of multiple rounds of patient communication and negotiation. According to insiders close to Kennede Electronics Mfg., Huaxin Chuali has been actively working to resolve its pledged financing debt issues. Since June 2022, several announcements of the controlling shareholder reducing its shareholdings, as issued by Kennede Electronics Mfg., indicate that each reduction was intended to repay its debts, with the proceeds not being used for other purposes. This demonstrates that each reduction was aimed at avoiding the judicial auction of control rights. A positive signal was also revealed in a company announcement on May 30th of this year: "The funds from Huaxin Chuali's reduction will be fully used to repay its pledged financing debts. After this repayment, its debt scale will be greatly reduced, and the high proportion of pledged financing will be further resolved." This indicates that progress has been made in resolving Huaxin Chuali's debt problem. Market analysts believe that the stability of control will also have a positive impact on the company's financing capabilities and business development, ensuring the company's stable and continuous growth and protecting the interests of numerous investors. Kennede Electronics Mfg. focuses on the research, development, and manufacturing of small household appliances. Since its controlling shareholder, Huaxin Chuali, took over the company in 2018, Kennede Electronics Mfg. has been continuously transforming and reforming its core business while actively seeking change, utilizing the listed platform to integrate high-quality resources and consolidate its business development capabilities. Currently, Kennede Electronics Mfg. has formed a complete industrial chain manufacturing capacity with "full coverage, flexibility, and fast response", providing products and services to over 300 million users worldwide, with business operations covering more than 120 countries and regions. The company is actively expanding its health appliances business and has successively launched a series of health living home appliances such as air purifiers, desktop air conditioners, dehumidifiers, and pet appliances. Among them, the sales volume of air purifiers has been increasing year by year, with a year-on-year growth rate of 66.63% in 2022. At the same time, the company is exploring the health lighting field. During the Double 11 Shopping Festival in 2023, the brand's full-spectrum floor lamp won the "TOP1 4000+ price range new domestic full-spectrum vertical eye-protective lamp" in the Tmall store. In addition, Kennede Electronics Mfg. continues to promote its electronic cigarette business with high standards and high quality throughout the entire industry chain. Currently, the electronic cigarette business is being conducted in North America, Europe, Southeast Asia, and other regions, and the scale advantage in overseas markets is further improving, opening up high-growth space for the company's future performance development.