BEIJING, July 30, 2021 /PRNewswire/ — According to the announcement made by Joy Spreader (06988.HK) in the morning of 30 July 2021, in accordance with the shareholder resolutions passed by the shareholders of the Company at the annual general meeting held on 30 June 2021, the directors of the Company were granted a general mandate to buy back the shares of 10% at maximum of the total shares of the Company in issue on June 30, 2021. The Board of Directors will exercise the Shares Buy-Back Mandate at appropriate times following the publication of the interim results of the Company for the six months ended June 30, 2021 in accordance with the requirements under the Listing Rules.
The Board believes that the shares of the Company have been trading in the open market at a price which does not fully reflect the underlying value of the Company. The Proposed Share Buy Back and subsequent cancellation of the bought back shares could enhance the value of the shares, thereby improving the return to shareholders of the Company. In addition, the Company is in a stable financial position and is able to maintain sufficient financial resources to meet the needs of its continuous business growth while carrying out the buy back of shares.
Analysts suggest that the Proposed Share Buy Back by Joy Spreader demonstrates the Board’s recognition of and confidence in its long-term value, which will also be in the interest of the Company and its shareholders as a whole.