Zhou Hei Ya International Announces On-Market Share Repurchase and Dividend Payout
Zhou Hei Ya International Holdings Company Limited (Stock Code: 1458) has issued a voluntary announcement indicating its intention to conduct an on-market share repurchase. This move, alongside a substantial dividend payout, is likely to attract attention from investors and could have significant implications for the Company’s share price.
Key Highlights of the Announcement
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Dividend Payout: The Board has recommended a final dividend of HK\$0.09 per ordinary share, equivalent to RMB0.08 per share (based on an exchange rate of HK\$1 = RMB0.88357). The total dividend payout amounts to approximately RMB168,020,000, calculated on the basis of the Company’s issued shares (2,112,896,500). Notably, this payout represents about 107.2% of the Group’s net profit for the year ended December 31, 2025. This level of payout, exceeding net profit, is rare and signals the Company’s commitment to shareholder returns.
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Substantial Share Repurchase Program: The Board has resolved to repurchase up to 211,289,650 shares, representing approximately 10.0% of the issued shares as of the announcement date. The repurchase will occur in the open market between March 27, 2026 and the conclusion of the annual general meeting in 2027. This initiative is conducted under the general and unconditional mandate approved by shareholders at the AGM held on May 16, 2025, and the mandate to be proposed at the forthcoming AGM in 2026, if applicable.
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Regulatory Compliance: The Company affirms that repurchase activities will fully comply with its memorandum and articles of association, the Hong Kong Listing Rules, The Codes on Takeovers and Mergers and Share Buy-backs, the Companies Law of the Cayman Islands, and all other relevant laws and regulations.
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Strategic Rationale: The Company believes that this share repurchase demonstrates confidence in its business outlook and prospects. The Board asserts that current financial resources are sufficient to implement the repurchase while maintaining a solid financial position.
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Discretion and Uncertainty: Implementation of the repurchase is subject to market conditions and will be at the absolute discretion of the Board and/or its authorized persons. There is no assurance regarding the timing, quantity, price, or whether repurchases will occur at all.
Important Considerations for Shareholders
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Price-Sensitive Implications: The combination of a dividend payout exceeding net profit and a large-scale share repurchase is a strong signal of management’s confidence and a clear commitment to enhancing shareholder value. Such actions may positively affect the share price by improving investor sentiment and reducing the number of shares outstanding.
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Risks: Shareholders and potential investors must be aware that the repurchase plan is not guaranteed; its execution depends on market conditions and Board discretion. There is no certainty regarding timing, quantity, or price, and the Company may decide not to proceed with repurchases at all.
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Advisory: Investors are advised to exercise caution when dealing in Zhou Hei Ya shares, given the potential volatility from these corporate actions.
Leadership and Governance
The Board is led by Mr. ZHOU Fuyu (Chairman and CEO), with executive directors Mr. LYU Hanbin and Ms. WANG Yali. Independent non-executive directors include Mr. CHEN Chen, Mr. LAI Chi Shing, and Ms. CHEN Ying.
Conclusion
The announcement of a sizeable share repurchase alongside an aggressive dividend payout is a notable development. It underscores management’s confidence and commitment to shareholder returns. Investors should closely monitor future announcements, as these actions could materially impact Zhou Hei Ya’s share price and market dynamics.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult professional advisors before making any investment decisions. The implementation of the proposed share repurchase is subject to market conditions and Board discretion, and there is no guarantee that any repurchases will occur.
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