Acting for two consecutive days! China Literature's continuous share repurchase bolsters market confidence.
Recently, Hong Kong-listed company China Literature (00772.HK) has been continuously advancing its share repurchase operations, implementing buyback measures for two consecutive trading days, taking practical actions to stabilize market expectations in the secondary market and demonstrating the company's firm confidence in its long-term development value.
According to disclosures in HKEX announcements, on June 4, China Literature cumulatively repurchased 400,000 shares at a price range of HK$22.62 to HK$23.22 per share, with a single transaction cost of approximately HK$9.1787 million. Following closely, on June 5, the company further increased its buyback, repurchasing another 400,000 shares within a price range of HK$22.88 to HK$23.18, costing about HK$9.216 million. The total repurchase expenditure over the two days exceeded HK$18 million. According to the company's disclosure, the repurchased shares will be used for cancellation, which will effectively reduce the company's total share capital.
This regular repurchase operation is based on the share repurchase authorization framework previously approved for China Literature. As early as the Annual General Meeting on May 30, 2025, the company obtained shareholder authorization to repurchase up to 10% of the issued shares on that day. Subsequently, on December 4, 2025, the board of directors officially announced approval of the relevant repurchase plan, authorizing the use of up to HK$1.2 billion for repurchases, with an implementation period not exceeding 12 months, providing ample room for the company's medium to long-term share repurchase operations.
From a capital market perspective, share repurchase and cancellation is an important means for listed companies to reward shareholders and optimize their capital structure. By reducing the total share capital, it can effectively increase earnings per share and enhance shareholder equity, while also signaling to the market the company's robust cash flow and solid operational fundamentals, alleviating market sentiment pressure caused by short-term stock price fluctuations.
Industry analysis indicates that China Literature's continuous implementation of repurchases, on one hand, reflects the company's ample cash flow and sufficient operational resilience, possessing the strength to reward the market; on the other hand, it aligns with the company's long-term strategy of focusing on its core business and deepening its IP industry chain. Currently, China Literature is steadily advancing its core "IP+AI" strategy, leveraging its high-quality online literature IP resources to develop diversified businesses such as content incubation, film and television adaptation, and cultural and creative derivatives. Stable capital operations will lay a solid foundation for the implementation of the company's strategy, helping to release its long-term value. In the future, the company may continue to orderly advance its repurchase plan according to market conditions and operational pace.
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