DL Holdings Group Limited Announces Cancellation of Repurchased Shares

DL Holdings Group Limited (Stock Code: 1709), a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange, has made a significant announcement regarding the cancellation of shares recently repurchased under its ongoing share buyback program.

Key Points of the Announcement

• Repurchase Mandate and Share Buyback Plan: The Board of Directors had received a general mandate from shareholders at the Annual General Meeting (AGM) held on 12 September 2025, authorizing them to repurchase up to 148,329,238 shares, representing 10% of the company’s then-issued share capital (excluding treasury shares).
• Execution of Share Repurchases: Between 19 March 2026 and 28 April 2026, the company executed a series of open market share repurchases, amassing a total of 28,996,000 shares, which is approximately 1.95% of the total issued shares at the time the mandate was approved. The aggregate consideration for these repurchases was around HK\$35.43 million (excluding transaction costs).
• Share Cancellation: Of the shares repurchased, the company is in the process of cancelling 20,266,000 shares. This cancellation is expected to be completed in May 2026.
• Change in Share Capital: Upon completion of the cancellation, the total number of issued shares (excluding treasury shares) will be reduced from 2,021,666,028 to 2,001,400,028 shares.
• Ongoing Share Buyback: The Board reaffirms its intention to continue reviewing and potentially executing further share repurchases under the existing or any future mandates, subject to compliance with all relevant regulations and corporate governance requirements.

Implications for Shareholders and Share Price Sensitivity

• Potential Enhancement of Shareholder Value: The reduction in the total number of shares outstanding through the cancellation of repurchased shares is expected to enhance the net asset value (NAV) per share and/or earnings per share (EPS). This action is cited as being in the best interests of both the company and its shareholders.
• Potential Price Sensitivity: Share buybacks and subsequent cancellations are often viewed positively by the market, as they signal management’s confidence in the company’s prospects and can lead to improved per-share financial metrics. This may have a supportive or positive effect on the company’s share price.
• Caution for Investors: The company advises shareholders and potential investors to exercise caution in dealing with its securities, given that further share repurchases and cancellations could continue to impact the share structure and valuation.

Board and Management

The current Board comprises a mix of executive, non-executive, and independent non-executive directors, including:

• Chairman, CEO & Executive Director: Mr. Chen Ningdi
• Executive Directors: Mr. Lang Joseph Shie Jay, Mr. Ai Kuiyu, Ms. He Zhiying
• Non-Executive Directors: Mr. Qiao Linjian, Mr. Wang Yiding
• Independent Non-Executive Directors: Mr. Chang Eric Jackson, Mr. Chen Cheng-Lien (also known as Chen Cheng-Lang and Chen Stanley), Mr. Liu Chun

Conclusion and Investment Insight

The planned cancellation of a substantial portion of recently repurchased shares is a noteworthy development for DL Holdings Group Limited shareholders. This move is expected to directly benefit remaining shareholders through an increase in ownership per share and potentially higher per-share financial ratios. The ongoing share buyback strategy demonstrates the Board’s commitment to shareholder returns and prudent capital management. Investors should monitor further announcements from the company regarding additional repurchases or cancellations, as these actions could continue to influence the company’s share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a professional advisor before making any investment decisions. The company’s plans and actions are subject to change, and all investments involve risk.

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