Shandong Boan Biotechnology Launches Up to HK\$200 Million On-Market Share Repurchase Program
Key Points for Investors
- Repurchase Program Announced: Shandong Boan Biotechnology Co., Ltd. (“the Company”, Stock Code: 6955) has announced its intention to repurchase shares from the open market for up to HK\$200 million in value under its existing and future shareholder-approved repurchase mandates.
- Board Confidence: The Board considers the Company’s current trading price undervalues its intrinsic value, business prospects, and recent achievements, indicating strong confidence in the Company’s future outlook.
- Financial Position: The repurchase will be conducted within the Company’s current financial resources, ensuring a solid financial position is maintained even as buybacks are executed.
- Regulatory Compliance: All repurchases will comply with the Listing Rules, Codes on Takeovers and Mergers and Share Buy-backs, and relevant laws and regulations.
- Flexibility in Execution: The timing, quantity, and price of repurchases will be determined at the Board’s absolute discretion, subject to market conditions.
- Post-Repurchase Options: Repurchased shares may be cancelled, held in treasury, sold, or transferred as appropriate.
- Shareholder Caution: There is no guarantee on the timing or amount of repurchases, and shareholders are advised to exercise caution when dealing in the Company’s shares.
Details of the Share Repurchase Program
The Board of Directors of Shandong Boan Biotechnology Co., Ltd. has resolved to initiate an on-market share repurchase program. The Company plans to repurchase up to HK\$200 million worth of its own shares in the open market. This buyback will be conducted under the general mandate approved by shareholders at the annual general meeting held on 5 June 2025, as well as any future repurchase mandates granted at upcoming general meetings.
The Company will strictly adhere to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange, particularly Rule 10.06(2)(e), which prohibits share purchases during periods when the Company possesses inside information not yet made public, especially around key financial result announcements.
Price-Sensitive Information for Shareholders
- Potential Impact on Share Price: The announcement of a significant share buyback program can be price sensitive, as it signals management’s confidence in the Company’s valuation and long-term prospects. Such activity often supports share prices by reducing the amount of stock in the market and can indicate that the Company believes its shares are undervalued.
- Repurchase Discretion: The Company has not committed to a specific timeline, quantity, or price for the repurchases, so actual impact will depend on market conditions and the Board’s discretion.
- Use of Repurchased Shares: Shares repurchased under the program may be cancelled, held in treasury, sold, or transferred, which could influence the Company’s capital structure and future earnings per share.
Board Statement and Rationale
The Board believes that the Company’s current share price does not fully reflect its intrinsic value, business prospects, or recent achievements. The repurchase program is intended to demonstrate management’s confidence in the business outlook and prospects, and to enhance shareholder value. The Board also reassures investors that the Company’s financial position remains robust and that the buybacks will not compromise the Company’s financial stability.
The Board further notes that the repurchase program is part of the Company’s ongoing commitment to maximizing shareholder value and may be adjusted according to market conditions and the availability of the repurchase mandate.
Important Notices for Shareholders and Investors
- No Assurances on Timing or Volume: Shareholders and potential investors are cautioned that there is no guarantee regarding the exact timing, quantity, or price of any share repurchases. Execution remains at the Board’s absolute discretion.
- Exercise Caution: Investors should exercise caution when trading in the Company’s shares, as the market may react to the Company’s repurchase activities and related announcements.
Board Composition
As of the date of the announcement (13 May 2026), the executive Directors are Ms. Jiang Hua (Chairperson, CEO, and Executive Director) and Mr. Wang Shenghan. The non-executive Directors are Mr. Liu Yuanchong, Ms. Li Li, and Mr. Li Shixu. The independent non-executive Directors are Professor Shi Luwen, Mr. Dai Jixiong, and Dr. Yu Jialin.
Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Shareholders and investors should conduct their own research and consult professional advisers before making any investment decisions. The Company has not committed to a specific timeline or quantity for share repurchases, and actual repurchase activity may fluctuate based on market conditions and Board discretion.
