Gushengtang Holdings Announces Substantial Further Share Repurchase Plans—Up to HK\$900 Million

Key Highlights

• Gushengtang Holdings Limited (“the Company”) has announced an extension of its share repurchase program under the existing shareholder-approved mandate.
• The Board has resolved to repurchase shares in the open market for up to an additional HK\$300 million, building on two prior HK\$300 million authorizations, taking the total potential repurchase amount to HK\$900 million.
• The repurchase is to be funded entirely by the Company’s internal resources, excluding proceeds from its global offering and top-up placing.
• Repurchased shares may either be cancelled or held in treasury, at the Board’s discretion.
• The Company will seek to refresh the repurchase mandate at an upcoming Extraordinary General Meeting (EGM).

Details of the Share Repurchase Initiative

At the annual general meeting held on June 20, 2025, Gushengtang Holdings’ shareholders granted the Board a general mandate to repurchase up to 23,696,549 shares, representing approximately 10% of the Company’s total issued shares as of that date.

The Board first resolved to utilize this mandate for an aggregate price of up to HK\$300 million on August 29, 2025. This was followed by an additional HK\$300 million authorization on November 6, 2025. Most recently, on April 21, 2026, the Board resolved to further expand the program by another HK\$300 million.

In total, the Company now has Board approval to repurchase shares in the open market up to an aggregate amount of HK\$900 million under the existing repurchase mandate.

The period for the latest repurchase will extend until the earliest of:

• The conclusion of the next annual general meeting,
• The expiration of the period within which the next AGM is required to be held by law or the Company’s articles, or
• The revocation or variation of the current mandate by ordinary resolution at a general meeting.

Rationale and Implications for Shareholders

• The Board believes this expanded share repurchase program will enhance shareholder value and improve returns, as well as signal strong confidence in the Company’s long-term business prospects.
• The Company stresses that its financial position remains robust, and it can maintain adequate resources to support ongoing business growth alongside the repurchase program.
• The Proposed Further Share Repurchase is considered to be in the interests of the Company and all shareholders.
• Shareholders should note that the actual execution, timing, quantity, and pricing of any share repurchases remain at the absolute discretion of the Board and are subject to market conditions. There is no assurance that repurchases will be made at any specific time, quantity, or price.

Upcoming Shareholder Meeting and Mandate Refresh

Owing to the expanded use of the repurchase mandate, the Board intends to refresh the existing repurchase authority. The Company will convene an Extraordinary General Meeting (EGM) to seek shareholder approval for this refreshment and any variation of the mandate.

A detailed circular, containing information on the proposed mandate refreshment, disclosures required under the Hong Kong Listing Rules, and a notice convening the EGM, will be sent to shareholders in due course.

Upon approval of the new mandate, the existing one will be revoked to the extent not yet exercised, but without prejudice to any previous valid repurchases.

Potential Market Impact and Price Sensitivity

• The announcement of a further HK\$300 million buyback (up to HK\$900 million in total) is potentially price-sensitive news. Share repurchase programs of this scale often signal management’s confidence in the intrinsic value of the company and can provide support for the share price.
• The plan to refresh the repurchase mandate further underscores the Company’s commitment to returning value to shareholders and maintaining flexibility in capital management.
• Investors should note that the execution remains subject to Board discretion and market conditions, and should exercise caution when dealing in the Company’s shares.

Board Composition

As of April 21, 2026, the Board of Gushengtang Holdings comprises:
• Mr. TU Zhiliang (Chairman and Executive Director)
• Mr. HUANG Jingsheng, Mr. LIU Kanghua, Mr. CAO Yanling (Non-Executive Directors)
• Ms. WANG Lan, Mr. LI Tie, Mr. ZHONG Weihe (Independent Non-Executive Directors)

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should be aware that share repurchase programs are subject to market conditions and the ultimate discretion of the Company’s Board. There is no guarantee that the Company will repurchase shares at any particular time, price, or quantity. Please refer to official Company announcements and filings for the most up-to-date and complete information.

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