On August 20, YSB (09885) announced a new buyback initiative, allocating up to HKD 100 million for open-market share repurchases. The company stated that the actual execution will depend on prevailing market conditions, with the repurchased shares scheduled for cancellation. This move is designed to further optimise its capital structure and bolster shareholder returns.

This latest programme continues a consistent pattern of capital returns. In May 2025, YSB initiated a similar HKD 100 million buyback, completing the repurchase of 5.63 million shares within two months at a total cost exceeding HKD 44.36 million. Those shares were also earmarked for cancellation, underscoring the company's commitment to delivering ongoing shareholder value.

Between March 23 and July 21 of the same year, YSB allocated HKD 159 million through its corporate trust to buy back over 35 million shares, representing approximately 5.1% of its total share capital as of June 30. In addition to corporate buybacks, the company's directors and management have been active in increasing their personal stakes.

Since March 2026, YSB Chairman and CEO Zhang Buzhen has made five consecutive open-market purchases of the company's shares. According to the latest filings, he acquired 500,000 ordinary shares through his affiliated entity MIYT Holdings Limited on May 29, 2026, at an average price of HKD 3.49 per share. Following this transaction, Zhang's total shareholding rose to 22.92%.

The repeated buybacks and insider purchases signal management's strong conviction in the company's long-term value. With robust cash flows and stable operations, YSB is leveraging its financial strength to repurchase and cancel shares at what it perceives as undervalued levels. This strategy not only enhances earnings per share but also transmits a clear value signal to the market.

The confidence underpinning these buybacks is grounded in solid fundamentals. In the first half of this year, YSB generated revenue of RMB 10.283 billion, marking a 4.5% year-on-year increase, while net profit surged 47.1% to RMB 109 million. The platform maintained an average of 460,000 monthly active buyers, with a stable payment rate of 94%. Self-operated order delivery timeliness reached 97.4%, and the cash conversion cycle stood at approximately negative 39.1 days. The expansion of high-margin business segments and the deepening of its digital supply chain have driven continuous improvements in the company's profit structure.

Looking ahead, the out-of-hospital pharmaceutical market is expanding steadily, with accelerating demand from primary healthcare providers. As China's largest digital integrated service platform for the out-of-hospital pharmaceutical industry, YSB is well-positioned to capitalise on the synergies between its platform and self-operated businesses. With a compelling combination of improving fundamentals and an undervalued stock price, the company's medium-to-long-term value potential warrants close attention.