HK Tech Venture (01137.HK) offered to buy back 100 million shares at HKD 2.15 per share. The group issued a shareholder letter yesterday, indicating for the first time that it will not raise the tender offer price.

The company disclosed in the shareholder letter that after completing the repurchase, it still holds nearly HKD 353 million in net cash and has not utilized a bank credit limit of HKD 1.016 billion at the end of last year. It is expected that the company has sufficient operating funds to meet its daily operating needs.

Independent financial advisor Lombarda Capital supports the buyback, indicating that the current weak retail consumption atmosphere has had a negative impact on Hong Kong's retail market and the group's Hong Kong e-commerce business. The growth of the group's Hong Kong e-commerce business in the first four months of this year is limited, and it may not be able to achieve its originally planned total commodity trading volume target by mid-2026.

Lombarda Capital revealed that HK Tech Venture is expected to continue to need further investment in the coming years, which may have a negative impact on its short-term financial performance. Therefore, there may be uncertainties in the group's financial performance in the short term. In addition, the group's development strategy may not be consistent with seeking short-term returns or continuous dividends for shareholders. The tender offer will provide some opportunities for such shareholders to exit.