Xiamen Yan Palace Bird’s Nest Industry Co., Ltd. Announces Significant H Share Repurchase Plan
Key Highlights of the Announcement
- Repurchase Mandate: The Board of Xiamen Yan Palace Bird’s Nest Industry Co., Ltd. has announced its intention to repurchase H Shares from the open market. This decision follows the general mandate granted by shareholders at the annual general meeting held on May 11, 2026.
- Repurchase Amount: The share repurchase will be up to HK\$100.0 million, with a maximum of 46,169,320 H Shares (representing 10% of the total H Shares in issue, excluding treasury shares).
- Timeline: The repurchase period runs from the date of the announcement until the expiry of the repurchase mandate.
- Financial Position: The company reports healthy cash flows and a stable financial position, ensuring that the repurchase will be funded by existing cash reserves. No proceeds from the Hong Kong public offering or international offering will be used.
- Compliance: The repurchase will be conducted in strict adherence to the relevant laws and regulations, including the Company’s articles of association, Hong Kong Listing Rules, Codes on Takeovers and Mergers and Share Buy-backs, and the PRC Companies Law.
- Purpose: The Board believes the H Shares are undervalued and aims to demonstrate confidence in the company’s business outlook. The repurchase is intended to enhance shareholder returns and create value for all shareholders.
- Outcome: Repurchased shares may be held as treasury shares or cancelled, depending on the Board’s discretion.
Important Information for Shareholders and Investors
- Potential Price Sensitivity: The announcement reveals the Board’s view that the current market price of H Shares is undervalued. This could be interpreted as a positive signal for investors, potentially leading to increased demand or a positive impact on the share price.
- Share Buyback Impact: A buyback of up to 10% of the H Shares is a substantial move that typically supports share price by reducing supply and demonstrating management confidence.
- Discretion and Uncertainty: The Board has absolute discretion on whether to conduct the repurchase, as well as its timing, quantity, and price. There is no assurance that the repurchase will be carried out or completed.
- Cautionary Note: Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares, given the uncertainty regarding the execution of the repurchase.
Detailed Executive Information
The Board comprises Mr. HUANG Jian (Chairman and Executive Director), Mr. ZHENG Wenbin, Mr. LI Youquan, Ms. HUANG Danyan (Executive Directors), Mr. LIU Zhen and Mr. WANG Yalong (Non-Executive Directors), and Mr. XIAO Wei, Mr. CHEN Aihua, Mr. LAM Yiu Por (Independent Non-Executive Directors).
The announcement was issued in Hong Kong on May 11, 2026, under the order of the Board, with Mr. HUANG Jian as Chairman and Executive Director.
Potential Market Impact
The share repurchase plan is a significant corporate action that could positively influence the share price, especially given the stated belief by management that shares are undervalued. Investors should closely monitor further disclosures regarding the execution of this repurchase mandate.
Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors are urged to conduct their own research and consult with professional advisers before making any investment decisions. The company may or may not execute the share repurchase as described, and future actions remain at the sole discretion of the Board.
