FAST NEWS: Livzon Pharma cancels repurchased H shares

The Latest: Livzon Pharmaceutical Group Inc. (1513.HK) announced on Friday that as of Jun. 27, 2024, it has repurchased a cumulative total of 2.78 million H shares, and all of which have been cancelled.

Looking Up: The company’s cancellation of the repurchased shares will result in a reduction of the overall share capital and improve earnings per share.

Take Note: The company spent a total of HK$68.16 million ($8.74 million) on share repurchases, which indirectly reduced funds for business operations and future investments, and the cancellation of the repurchased shares reduced the liquidity of the company’s shares.

Digging Deeper: Founded in 1985 and listed in Hong Kong in 2014, Livzon is an integrated pharmaceutical company engaged in development and production of pharmaceutical products, including active pharmaceutical ingredients and intermediates, as well as diagnostic reagents and equipment. The company has seen steady increases in revenue and earnings over the past few years, and late last year proposed to spin off its Livzon Diagnostics unit, a diagnostic reagent and equipment manufacturer in which it holds a 39.43% stake, for a separate listing on the National Equities Exchange and Quotations (NEEQ) market in Beijing.

Market Reaction: Livzon’s shares rose in Tuesday trade, closing up 0.8% at HK$25.9 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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