Demonstrating Confidence and Creating Value
HONG KONG, Oct. 19, 2023 /PRNewswire/ -- Hangzhou SF Intra-city Industrial Co., Ltd. (Stock Code: 9699.HK), China's largest third-party on-demand delivery service provider, is pleased to announce that the board of directors intends to exercise the Share Repurchase Mandate under the general mandate to repurchase the H shares of the Company not exceeding 10% of the total number of the H Shares in issue as at the date of passing the special resolution at the AGM and the Class Meetings at a maximum of HK$200 million.
On 6 June 2023, the Board of the Group decided to utilise the Share Repurchase Mandate and, it plans to repurchase H shares in the open market from time to time by using up to HK$200 million. The repurchased shares shall be cancelled in due course. The Group intends to finance the share repurchase by its existing financial resources other than proceeds from the listing of the H Shares on the Main Board of The Stock Exchange of Hong Kong Limited in December 2021. The Group believes that the current financial resources of the Company are able to implement the share repurchase while maintaining a solid financial position.
The Group believes that a share repurchase in the present market conditions will demonstrate the Company's confidence in its own business outlook and prospects and would, ultimately, benefit the Group and create value to the shareholders.
SF Intra-city stated that the share repurchase can not only increase the liquidity of the Company in the stock market, but also demonstrates the Group's confidence in its business development and prospects, conveying a positive signal to the market and investors. The share repurchase will enhance investors' understanding of the Company's transparency and corporate governance, and also has the potential to increase earnings per share. Additionally, the share repurchase can adjust the Company's capital structure to make it more reasonable and efficient, contributing to the improvement of the Group's financial indicators and shareholder value.
SF Intra-city has capitalized on the positive momentum of an economic recovery in the second half of the year. The Group has been actively enhancing its delivery network through various measures in its business operations. Taking advantage of the favorable trend of the transformation and upgrade in the national healthcare digitization, the Group has recently launched a comprehensive logistics solution for integrated pharmaceutical distribution to optimize efficiency in various aspects through a multi-platform, full-chain coverage approach. Furthermore, as it is expected that the domestic delivery demand during the autumn and winter seasons and the express deliveries terminal scenarios of "Double 11" will significantly increase, SF Intra-city has actively responded to them by deploying measures to enhance its service capabilities so as to deepen its advantages in third-party refined services and cultivate a more robust on-demand logistics capabilities. The Group has also strengthened its efforts to explore new scenarios with various strategic partners such as Douyin, Meituan, and DiDi and continue to build an ecosystem with major local lifestyle service platforms. For instance, SF Intra-city has recently provided front warehouse distribution services for Tianhong Supermarket, and has established an order delivery network for Luckin Coffee with comprehensive coverage. The Group is dedicated to meeting the demand for rapid and timely delivery, thereby providing consumers with a more efficient and convenient purchasing experience. The Group will continue to seize the opportunities in multi-channel traffic, local retail development, and third-party on-demand delivery service, and the opportunities from the recent national policy of "Quarter-hour Convenient Living Circle" and the initiative to boosting consumption and livelihood, thereby aligning with its corporate mission to "bring enjoyable lifestyle to your fingertips". SF Intra-city will continue focusing on high-quality growth, improved profitability, and steady development, aiming to deliver greater value returns to its shareholders and investors of the Group.
