Xuanwuyun (02392) announced that the board of directors intends to exercise power to repurchase the company's shares in accordance with the general authorization granted to the board of directors by the shareholders' resolution passed by the shareholders at the company's annual general meeting of shareholders held on June 26, 2023 and the new repurchase authorization to be approved at the company's annual shareholders' meeting to be held on June 26, 2024 (2024 repurchase authorization). According to the repurchase authorization, the company was authorized to repurchase up to 56.032,100 shares, or 10% of the total number of shares issued on the day the resolution was passed at the Annual General Meeting of Shareholders.
The board of directors decided that the company will exercise the repurchase authorization and (if approved) the 2024 repurchase authorization to repurchase shares on the open market (share repurchase plan) in accordance with market conditions. The company plans to use capital of up to HK$100 million to repurchase shares under the share repurchase plan.
The board of directors is confident in the Group's business prospects and long-term development, and believes that the company's current stock price is lower than its intrinsic real value. The board of directors believes that the company's current financial resources are sufficient to support the share repurchase plan, and that repurchasing shares under the share repurchase plan will not adversely affect the Group's business operations or cash flow situation.