Chicony Board Approves Up to NT$900 Million to Repurchase 6,000,000 Shares to Protect Shareholder Value

Chicony Electronics Co., Ltd. (TWSE: 2385), a global leader in electronic components, held a board of directors meeting today (June 30). To protect the company's shareholders value, the board resolved to initiate a share repurchase program on the open market, running from July 1, 2026, through August 31, 2026. The company plans to acquire 6,000,000 shares, all of which will subsequently be canceled to reduce capital in accordance with relevant laws. This pragmatic financial strategy underscores Chicony's absolute confidence in its long-term fundamentals and value expansion.

Chicony stated that due to recent global macroeconomic conditions and short-term broader market volatility, the current stock price fails to fully reflect the company's intrinsic value. Characterized by long-term robust operations and outstanding profitability, Chicony closed the first quarter of 2026 with current assets reaching NT$79.9 billion, indicating abundant working capital. The allocated maximum budget of NT$900 million to buy back 0.78% of outstanding shares represents a mere 1.13% of its Q1 current assets. This capital allocation will have absolutely no impact on the company's existing global capacity deployment, new product R&D pipelines, or future capital expenditure momentum.

The Board of Directors emphasized that prior share repurchases primarily focused on attracting and motivating internal talent. The rollout of this "equity preservation" buyback followed by capital reduction will further optimize the company's capital structure, enhance Return on Equity (ROE), and drive growth in Earnings Per Share (EPS). Through this sincere and equitable financial management initiative, Chicony aims to deliver tangible returns to the broader investing public who have long supported the company.