Sina Technology News On the morning of May 20, Keep (03650. HK) announced that it would launch a share buyback program with a maximum amount of HK $100 million. The announcement said that the company had decided to increase the amount of repurchase funds allocated, up to HK $100 million, and would recommend share repurchases in the public market from time to time. The repurchase amount was allocated from its own financial resources other than the proceeds of the initial public offering.
According to Keep's latest annual report, on December 31, 2023, Keep's total current assets will be 2.29 billion yuan (RMB, the same below), total assets will be 2.45 billion yuan, net assets will be 1.87 billion yuan, and cash and cash equivalents will be 1.6 billion yuan.
In February this year, Keep announced its first share repurchase plan, with an investment of HK $16 million. As of the announcement date, this repurchase plan has been completed by more than 90%.
Full text of announcement attached:
Voluntary announcement
Intentionally increase repurchase funds and continue to repurchase shares in the market
This announcement is made voluntarily by Keep Inc. (the "Company").
This is to refer to the announcement of the Company dated February 14, 2024, which concerns that the Company intends to buy back the shares of the Company ("Shares") in the open market from time to time by using a fund with a maximum value of HK $16 million ("Repurchase Fund") in accordance with the share repurchase authorization approved by the shareholders of the Company ("Shareholders") at the general meeting held on June 12, 2023. As of the date of this announcement, the Company has used more than 90% of the repurchase funds to repurchase shares in the open market. For details, please refer to the Company's disclosure statement the next day.
The Company hereby announces that on May 19, 2024, it has decided to increase the amount allocated to the repurchasing fund, and proposes to increase the share repurchase authorization by up to HK $100 million. The Board of Directors of the Company (the "Board") will continue to recommend share repurchases in the open market from time to time in accordance with the share repurchase authorization approved by the shareholders on June 12, 2023 and/or any subsequent renewed or updated share repurchase authorization approved by the shareholders from time to time (collectively referred to as the "share repurchase authorization"). The Company intends to use its own financial resources other than the proceeds from the initial public offering to allocate shares for repurchase.
The Company shall, in accordance with the Memorandum and Articles of Association of the Company, the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules"), the Code on Takeovers, Mergers and Share Repurchases, the Company Law of the Cayman Islands (as amended) and all applicable laws and regulations, exercise its powers under the existing share repurchase authority to repurchase shares. The Board of Directors will continue to monitor market conditions and will buy back shares in the open market at an appropriate time in accordance with Article 10.06 of the Listing Rules. It is suggested that share repurchases will not result in the number of shares held by the public being lower than the relevant minimum percentage specified in the Listing Rules.
The Company believes that share repurchases will demonstrate its confidence in its own business prospects and prospects, which will ultimately benefit the Company and create value for its shareholders. The Board believes that the Company's current financial resources can enable it to implement share repurchases while maintaining a sound financial position.
Shareholders and potential investors must note that the share repurchases of the Company in the market will depend on the market conditions, and will be decided by the Board of Directors and/or its authorized persons at their sole discretion. There is no guarantee as to the time, quantity or price of any share repurchase. Shareholders and potential investors must act prudently when buying and selling shares.
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