6,000-Lot Treasury Share Plan Canceled in One Day
Memory module maker ADATA (3260) has changed its treasury share plan. The company announced on November 9 that it planned to buy back 6 million common shares from the centralized trading market from November 10 to January 8 next year, accounting for 1.68% of total issued shares, at a price range of 213.5 to 532.2 per share. Based on the upper price limit, the maximum buyback amount would be approximately 3.193 billion, and the repurchased shares would be transferred to employees. Unexpectedly, on the morning of November 10, it issued a material announcement stating that due to restrictions under Article 4-12 of the Securities Dealers Association Underwriting Self-Discipline Rules, it had decided to cancel the original buyback plan, which will be submitted to the next board meeting for ratification. The company did not further explain the specific reason for the restriction.
Stock Surges to 323 Then Pulls Back Near Flat
ADATA surged to 323 in early trading on November 10, up 18 from the previous close of 305, a gain of 5.9%. As news of the canceled treasury share buyback spread and broader market gains narrowed, the intraday rally pulled back sharply. As of morning 11:28, the stock had fallen back to 307.5, up only 2.5 and almost flat, down 17 from the intraday high, or about 5.26%.
Mixed Past Execution Rates as Revenue Still Hits High
Looking back at ADATA past treasury share execution, from April to June last year it originally planned to buy back 8,000 lots and actually bought back 7,763 lots, an execution rate of about 97%; from May to July this year it planned to buy back 4,000 lots and ultimately bought back 2,197 lots, an execution rate of about 55%. Prior to this filing, the company cumulatively held 9,960 lots of treasury shares. The sudden cancellation has focused market attention on the company's follow-up share price support measures and the impact of related regulatory restrictions on capital operations.
In terms of operations, ADATA benefited from tight memory supply and rising prices, with consolidated revenue of 17.06 billion in October, up 8.5% month-on-month and 282.3% year-on-year, the third-highest single month in history; cumulative revenue for the first 10 months reached 134.37 billion, up 222.7% year-on-year. Chairman Chen Libai previously noted that as AI infrastructure continues to expand, demand for DRAM and NAND Flash is heating up together, but upstream original manufacturers still need time for new capacity construction and process conversion, and memory supply is expected to remain tight in 2027, with DRAM shortages potentially even more severe than this year.