Raytron Technology (SHA:688002) will cancel nearly 5 million shares it repurchased through a share buyback program, according to a Friday bourse filing in Shanghai.
The shares were supposed to be allocated for employee stock ownership plans.
Upon cancellation, Raytron's shareholding will reduce to 460.8 million shares from 465.7 million shares.
Raytron attributed the change in purpose of the repurchased but unused shares to "convey company value and enhance investor confidence."
Shares rose 9% during late afternoon trading on Friday.