Zhihu's Share Buyback Plan Successful, Repurchasing Around 5 Million ADS, Representing About 2% of Total Shares

Tech 2024-10-17 10:44:45 Source: Network

Zhihu's Share Buyback Plan Successful, Repurchasing Around 5 Million ADS

Zhihu's Share Buyback Plan Successful, Repurchasing Around 5 Million ADS, Representing About 2% of Total Shares

Zhihu

On the evening of October 16th, Zhihu released an announcement stating that the company's conditional voluntary cash tender offer to repurchase up to 46,921,400 Class A ordinary shares (including shares in the form of American Depositary Shares) at a price of HK$9.11 per Class A ordinary share (equivalent to US$3.50 per ADS) had been successful. The resolution approving the offer, as stated in the notice of the extraordinary general meeting, was formally passed by independent shareholders through voting at the extraordinary general meeting held on Wednesday, October 16, 2024.

Zhihu stated that, as of October 15, 2024, the company had received sufficient valid tenders to fulfill the conditions of the tender offer. Based on preliminary estimates, Zhihu will repurchase approximately 5 million ADS, representing about 2% of the company's total share capital. The final number of shares repurchased and the payment amount will be determined upon completion of the settlement.

Market analysts believe that this buyback plan not only demonstrates the confidence of Zhihu's management team in the company's fundamentals but also helps to boost investor confidence and stabilize stock prices. Additionally, the share repurchase will reduce the number of shares outstanding, boosting earnings per share, and thereby further enhancing the company's financial performance.

According to Zhihu's second-quarter earnings report for 2024, the company's total revenue for the quarter reached 934 million yuan, and its adjusted net loss decreased by 79.9% year-on-year to 44.6 million yuan, achieving the largest single-quarter reduction in losses and the lowest net loss since its listing. This indicates that Zhihu is continuously optimizing its operations and gradually improving its profitability.

The success of this buyback plan reflects not only the confidence of Zhihu's management in the company's future development but also the market's recognition of Zhihu's value. In the future, as Zhihu continues to strengthen its content ecosystem and enhance user experience, it is expected to achieve even more significant results in the field of knowledge sharing.

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