Bama Tea Co., Ltd. Announces Intention to Repurchase Up to 10% of H Shares On-Market

Key Highlights of the Announcement

• Significant Share Buyback Mandate: Bama Tea Co., Ltd. (“the Company”) has announced its intention to repurchase up to 5,298,687 H shares, representing a substantial 10% of the total H Shares in issue (excluding treasury shares) as of the date of its most recent Annual General Meeting (AGM) held on April 21, 2026.
• Maximum Outlay: The aggregate purchase amount for the proposed repurchase will be up to RMB250 million (or the equivalent in Hong Kong dollars), to be executed in the open market and subject to prevailing market conditions.
• Mandate Approval: The share repurchase mandate was granted by a special resolution of shareholders at the AGM, with further details circulated to shareholders on March 30, 2026.
• Financial Strength and Rationale: The Company has highlighted its healthy cash flow and sound financial position, emphasizing that these resources are more than sufficient to support ongoing business development and the repurchase initiative.
• Potential Impact on Share Value: The Board believes the Company’s H Shares are undervalued in the market. The buyback is expected to signal strong confidence in the Company’s outlook, enhance shareholder returns, and support share value.
• Compliance and Funding: The repurchase will be fully compliant with all relevant rules and regulations, including the Company’s articles of association, the Hong Kong Listing Rules, the Codes on Takeovers and Mergers and Share Buy-backs, and the laws of the People’s Republic of China. Notably, the repurchase will be funded entirely by internal resources and will not utilize IPO proceeds.

Details for Shareholders and Investors

• Cancellation or Treasury: Repurchased shares may either be cancelled or held in treasury, as deemed appropriate by the Board.
• Public Float Requirement: The repurchase will not reduce the number of H Shares held by the public below the minimum percentage required by the Listing Rules.
• Market Sensitive Discretion: The Board retains absolute discretion over the timing, quantity, and price of any repurchase, and reserves the right to proceed or not, depending on market conditions.
• Price-Sensitive Implications: The announcement confirms the Company’s view that its shares are undervalued and that the buyback may enhance returns to shareholders—potentially supporting or increasing the share price. However, the actual execution, scale, and timing are not guaranteed.
• Caution Advised: Shareholders and potential investors are advised that there is no assurance regarding the extent or timing of the share repurchase and should exercise caution when trading H Shares.

Board Composition

As of the announcement date, the Board comprises the following members:

• Executive Directors: Mr. Wang Wenli (Chairman), Mr. Wu Qingbiao, Mr. Wang Kunheng, Mr. Wang Wenchao, and Mr. Wang Wenlong
• Non-executive Director: Mr. Wang Wenbin
• Independent Non-executive Directors: Ms. Chiu Mun Wai, Ms. Tong Naqiong, and Mr. Wang Yuefei

Conclusion

The announced intention by Bama Tea Co., Ltd. to conduct an on-market H Share repurchase of up to 10% of its issued H Shares, totaling as much as RMB250 million, is a significant development. This move demonstrates management’s confidence in the Company’s business outlook and may act as a catalyst for share price appreciation, especially given the Board’s belief that the shares are undervalued. However, investors should remain aware that the repurchase is contingent on market conditions and the Board’s discretion, with no assured timetable or quantum.

Disclaimer: This article is based on official company disclosures and is intended for informational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Investors should conduct their own due diligence and consult their financial advisors before making investment decisions. The company’s intention to repurchase shares is subject to market conditions and Board discretion, and may not necessarily materialize as described.

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