MORIMATSU INTL (02155) has announced that, under the share repurchase mandate, it is authorized to buy back up to 127 million shares on the Hong Kong Stock Exchange, representing 10% of the total issued shares (excluding treasury shares) as of the date of the annual general meeting.

The company's board declared on August 10, 2026, that it has resolved to utilize the repurchase mandate to buy back shares on the open market from time to time for a total amount not exceeding HK$50 million (the proposed share buyback). The company will fund the proposed share buyback with its internal cash resources.

The board believes that the current trading price of the shares does not reflect their intrinsic value or the company's actual business prospects, and the proposed buyback reflects the company's confidence in its own business development outlook. The board also considers that the company's current financial resources will enable it to implement the proposed buyback while maintaining a sound financial position.