On March 21, Ge Longhui Pharmaceutical (01530.HK) issued an announcement. The board of directors of the company intends to exercise its power to repurchase shares on the open market at an appropriate time in accordance with the 2023 repurchase authorization and/or the general authorization granted by shareholders to repurchase shares at the company's annual general meeting of shareholders to be held on June 25, 2024. According to the 2023 repurchase mandate, the company was approved to repurchase up to 244 million shares on the Stock Exchange of Hong Kong Limited, accounting for 10% of the total number of shares issued on the date of the company's annual shareholders' meeting held on June 20, 2023. The directors intend to seek repurchase authorization for 2024 from shareholders at the 2024 Annual General Meeting of Shareholders.
The company's financial position is sound. The board of directors believes that the current transaction price of the shares does not reflect their intrinsic value and actual business prospects, and is a good opportunity for the company to buy back the shares. The Board believes that the proposed share repurchase and subsequent cancellation of the repurchased shares can increase the value of the shares and thereby enhance shareholders' returns. Furthermore, the proposed share repurchase reflects the company's affirmation of its own value and confidence in the long-term prospects of the industry. The Board believes that the proposed share repurchase is in the overall interest of the company and its shareholders.