Jianzhi Education Technology Group Announces Dual-Class Share Structure, Share Repurchase Agreement with RongDe Holdings

Jianzhi Education Technology Group has announced the outcomes of its Extraordinary General Meeting, where shareholders approved a dual-class share structure, increased authorized share capital, and a share exchange agreement with RongDe Holdings. The dual-class share structure concentrates voting power, and the share exchange agreement enhances RongDe's control without altering its economic interest. These changes align with strategic growth and governance objectives.

Jianzhi Education Technology Group (NASDAQ: JZ), a leading Chinese provider of digital educational content, has announced significant changes to its corporate structure following its Extraordinary General Meeting held on July 17, 2025. Shareholders approved a dual-class share structure, an increase in authorized share capital, and a strategic share exchange agreement with RongDe Holdings.

The dual-class share structure introduces Class A and Class B ordinary shares, with Class B shares carrying 50 votes per share, significantly amplifying voting power compared to the single vote of Class A shares. This move aims to concentrate voting power within the company, particularly favoring major stakeholders like RongDe Holdings [1].

Additionally, the authorized share capital was increased from US$50,000 to US$1,000,000, providing Jianzhi with flexibility for future growth opportunities without immediate shareholder approval. The company is authorized to issue up to 9.5 billion more Class A shares [1].

A key resolution was the share repurchase agreement with RongDe Holdings Limited, involving the exchange of 54,790,000 Class A shares for an equivalent number of Class B shares. This transaction multiplies RongDe's voting power by 50 times without altering its economic stake, potentially giving RongDe overwhelming control over corporate decisions [2].

These changes align with strategic growth and governance objectives, allowing foundational investors to retain control even with a reduced economic ownership percentage. However, the implications for Class A shareholders are significant, as their influence concerning company direction and decision-making is likely to diminish [1, 2].

References:
[1] https://www.gurufocus.com/news/2987345/jianzhi-announces-results-of-extraordinary-general-meeting-jz-stock-news
[2] https://www.stocktitan.net/news/JZ/jianzhi-announces-results-of-extraordinary-general-wysqyvybsguv.html