Demonstrating Confidence in the Company’s Profitability and Business Prospects
HONG KONG, Dec. 22, 2014 /PRNewswire/ — Cogobuy Group ("Cogobuy" or the "Company", stock code:400.HK), a leading e-commerce company with the largest transaction-based e-commerce platform for IC and other electronic components in China, is pleased to announce that on December 21, 2014, the board of directors of the Company (the "Board") formally resolved to repurchase up to 26.5 million shares in the open market from time to time (the "Repurchase"). Moreover, the Board has approved to allocate an amount of HK$100 million to the trustee of the restricted share units scheme (the "RSU Scheme") as the current market price of the Company’s shares represents an excellent opportunity for the trustee to acquire shares to satisfy future awards, which granted to employees of the Company who have made or are expected to make significant contributions to the success of the Company.
The Repurchase would decrease the current public float, after deduction of restricted shares held by founders, cornerstone investors and beneficiaries of the current RSU scheme (Adjusted Public Float), by up to 10.91%. The additional shares purchased for the RSU Scheme represent approximately 11.57% of the Adjusted Public Float, with the assumption of the shares purchased at HK$3.56, the closing price on December 19, 2014.
Mr. Jeffrey KANG, Executive Director, Chairman and Chief Executive Officer of Cogobuy Group, said, "The Company’s shares are currently trading undervalued. The Board and management are confident about the Company’s business outlook and prospects, mainly supported by stronger-than-expected market demand in this fourth quarter, which is also the largest quarter of the year due to seasonality. The current market price of the Company’s shares is attractive, and our current financial resources enable us to implement the share repurchase while maintaining a solid financial position. We expect the share repurchase can benefit the Company and create value to our shareholders."
About Cogobuy Group
Cogobuy Group ("Cogobuy" or the "Company", stock code: 400.HK) is a leading e-commerce company with the largest transaction-based e-commerce platform for IC and other electronic components in China, as measured by GMV in 2013. Cogobuy is dedicated to serving the electronics manufacturing industry in China covering blue-chip customers and SMEs, which is a potentially lucrative and fast-growing segment of the market with a significant demand for the Company’s services. In 2013, the Company fulfilled orders with a GMV of approximately RMB3.9 billion. From 2011 through 2013, the Company sold products primarily through its direct sales platform, which accounted for substantially all of its revenues since its inception. It also generates revenues by charging commission fees to third-party merchants who sell products and services through its marketplace platform. The Company is also devoted to promoting idea and knowledge exchanges among electronics designers and engineers in China through new media marketing events, such as product launches and technology discussion forums in social media platforms such as Weibo and TechWeb. The Company also launched an interactive and engaging online community using its online platform INGDAN.com and ‘Hardeggs’ WeChat community.
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