Graffiti Smart-W (02391) issued an announcement. The group plans to carry out potential treasury bond acquisitions during the authorization period. Therefore, the public...
Zhitong Finance App News, Graffiti Smart-W (02391) announced that the Group plans to carry out potential treasury bond acquisitions during the authorization period. Therefore, the company plans to seek approval from shareholders in advance to authorize the acquisition, so that the board of directors can be authorized and empowered to carry out potential treasury bond acquisitions in the open market during the authorization period. The acquisition authorization shall authorize the board of directors to acquire treasury bonds within the maximum purchase amount of US$400 million (and to be redeemed at maturity in connection with the authorization of the acquisition).
The announcement stated that in order to maintain a stable return on principal and maximize the use of cash generated from business operations and fund-raising activities, the Group purchases short-term deposits and treasury bonds (including previous treasury bonds) from time to time as part of treasury management.
After considering the regulatory environment applicable to dual listed issuers in the US and Hong Kong, the expected return rate and low risk level of treasury bonds, the company expects that the Group can obtain more stable and satisfactory returns from treasury bonds compared with returns on short-term or long-term time deposits provided by licensed banks or financial institutions.