China Merchants China Direct Investments (CMCDI, 133 HK) has just published its annual general meeting (AGM) notice and circular.

The resolutions are routine and uncontroversial, including approving a general mandate that allows CMCDI to buy back up to 10% of its outstanding shares.

Don’t get too excited though. CMCDI does not actually plan to use the general mandate. The circular says:

Whilst the Directors do not presently intend to buy back any Shares they believe that the flexibility afforded by the mandate granted to them, if the [buyback mandate resolution] is passed, would be beneficial to the Company.

This is extremely disappointing and completely contradicts what CMCDI said in its 27 September 2024 announcement:

In the longer term, the Board noted the importance to conduct discount mitigation measures to enhance shareholders’ value.

Hence, the Board plans to achieve such objective by undertaking
the following actions. Firstly, a share buy-back general offer may be conducted in 2025, contingent on the availability of proceeds from divestments and compliance with all applicable laws, rules and regulations.

Secondly, beyond 2025, the Company may consider return of realisation profits to its shareholders through either special dividends or on-market share buy-backs. The choice between dividend distributions or on-market share buy-backs will depend on market conditions at the prevailing time, with particular focus on narrowing the share price discount to the Company’s NAV per share.

By the way, for this AGM, CMCDI has booked the big ballroom at Island Shangri-La hotel, which can accomodate 500 people. In the past, CMCDI’s AGMs used to take place at 50-people conference rooms. We look forward to meeting these 500 shareholders.

Contact us:

💬 WeChat: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com


招商局中国基金 (招商局基金, 133 HK) 刚刚发布了其年度股东大会通知和通函。

各项决议均为常规且无争议事项,包括批准一项一般授权(general mandate),允许招商局基金回购最多 10% 的已发行股份。

不过不要太兴奋。招商局基金实际上并不打算利用这一一般授权:

董事會目前無意回購任何股份,惟彼等相信倘若[回购授权]決議案獲通過,則彼等獲賦予之授權所帶來之靈活性將對本公司有利。

这令人非常失望,并且完全与 招商局基金在 2024 年 9 月 27 日公告中的表态相矛盾:

從較長期來看,董事會注意到須採取折讓緩解措施以提高股東價值。因此,董事會計劃採取下列行動來實現該目標。

首先,本公司或於 2025 年進行股份回購公開要約,惟取決於將投資變現可獲得的款項以及須遵守所有適用的法律、規則及法規。

其次,於 2025 年後,本公司可能會考慮通過特別股息或場內股份回購的方式向其股東返還變現溢利。選擇股息分派或場內股份回購將視乎當時的市場情況,尤其會集中於收窄本公司股價較其每股資產淨值的折讓。

顺便一提,为了此次股东大会,招商局基金在港岛香格里拉酒店预订了一个可容纳 500 人的大宴会厅。过去,招商局基金的股东大会通常在可容纳 50 人的会议室举行。我们期待与这500位股东见面。

联系我们:

💬 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

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