Core Viewpoint - Pan-Asia Environmental (00556) plans to utilize its high cash reserves of approximately RMB 1.3 billion (around HKD 1.4 billion) to enhance shareholder returns and reduce cash levels by implementing various financial strategies by December 31, 2026 [1] Financial Plans - The company intends to distribute approximately HKD 200 million as special dividends and buy back shares worth around HKD 100 million [1] - A total of approximately HKD 84 million will be used to repay amounts owed to its direct and ultimate holding company [1] - Approximately HKD 580 million will be allocated to expand its core business, while HKD 200 million will be used for business diversification [1] - The company plans to retain around HKD 220 million for general working capital [1] Special Dividends - The board has approved a special dividend of HKD 0.12 per share, totaling approximately HKD 119 million, to be paid in cash on March 26, 2026 [2] - Shareholders can choose to receive the special dividend in cash or as shares, with the two largest shareholders opting for cash [2] - A second special dividend of HKD 80 million is planned to be paid in cash by June 2026, amounting to approximately HKD 0.08 per share [2] Share Buyback - The board plans to utilize approximately HKD 50 million for share buybacks before the next annual general meeting in 2026, with an additional HKD 50 million for buybacks before the 2027 annual general meeting, pending shareholder approval [3] Business Expansion - The company aims to invest approximately HKD 330 million in developing its core business related to environmental protection products and services by June 2026 [4] - Plans include establishing a research and sales headquarters and production facilities, with an additional HKD 20 million allocated for acquiring specialized machinery [5] New Business Directions - The company is exploring opportunities in the water treatment and retail sectors, aiming to develop a business model that integrates standardized water treatment equipment and consumer products [6] - An investment of approximately HKD 220 million is anticipated for acquiring or investing in related businesses by December 2026, depending on market conditions [6] AI Integration - The company plans to deepen its core business through AI-driven opportunities, including a strategic partnership with Chengdu Qingshu Technology Co., aiming to establish AI centers in Xinjiang and Sichuan [7] - An investment of around HKD 200 million is expected for acquiring AI assets and building AI centers by December 2026 [7] Operational Considerations - The company recognizes the need for higher working capital due to increasing environmental project numbers and aims to retain at least HKD 220 million for operational purposes [8] - Maintaining sufficient cash levels is crucial for managing procurement costs and ensuring smooth cash flow management [8]
泛亚环保(00556)拟于2026年3月26日派发每股0.12港元的特别股息