IDREAMSKY's capital operation leads to a sharp decline in stock price; the company responds: equity repurchase is in progress

On the morning of May 16, IDREAMSKY announced that it plans to place no more than 100,252,800 shares at a price of HKD 0.72 per share, raising a total of approximately HKD 72.18 million, with a net fundraising amount of about HKD 70.19 million. The company stated that the funds raised will be used for the development expenses of the self-developed competitive shooting game "Kara Bichu" for its global multi-platform version and for promotional expenses for global distribution. In fact, this placement by IDREAMSKY comes less than ten months after the last completed placement. On July 31, 2024, IDREAMSKY had placed 119,850,400 shares at a placement price of HKD 2.15 per share, raising a total of approximately HKD 258 million. As of the close on May 16, IDREAMSKY's stock price was HKD 0.77 per share, down 8.33%. On the afternoon of May 16, IDREAMSKY responded to reporters, stating that since announcing the share repurchase plan at the beginning of the year, it has repurchased over 20 million shares, with a total amount exceeding HKD 35 million. The company will advance the repurchase plan rhythmically in conjunction with business development and market conditions. Regarding the current poor stock price performance, the company will repay shareholders by improving business and operational quality, expressing confidence in achieving profitability this year