Aurora Mobile Announces Share Repurchase Program

Rhea-AI Summary

Aurora Mobile (NASDAQ: JG) announced a share repurchase program approved by its board of directors on December 30, 2024. The program authorizes the company to repurchase up to US$5 million worth of its ordinary shares, including American depositary shares, over a 12-month period beginning January 1, 2025. The repurchases may be executed through open market transactions, private negotiations, block trades, or other legal means, subject to market conditions and regulations. The program will be funded from existing cash reserves and may be adjusted following periodic board reviews.

Positive

• Authorization of US$5 million share buyback program indicates confidence in company's value
• Program funded from existing cash balance demonstrates financial stability
• Flexible repurchase methods (open market, private negotiations, block trades) allow for optimal execution

Negative

• US$5 million buyback size might be relatively small depending on market capitalization
• Use of cash reserves for buyback could reduce funds available for business operations or growth initiatives

Insights

Financial Analyst

The $5 million share repurchase program represents approximately 12.5% of Aurora Mobile's current market capitalization of $40 million, indicating a significant commitment to enhancing shareholder value. The flexibility in execution methods (open market, private negotiations, block trades) provides the company with strategic options to optimize the buyback's impact. This program signals management's confidence in the company's financial health and their belief that the stock is undervalued. The 12-month timeframe allows for methodical implementation without creating excessive pressure on the stock price. Using existing cash reserves for the buyback suggests strong liquidity position, though investors should monitor the balance between capital return and operational investment needs.

In simpler terms: The company plans to buy back its own shares using $5 million of its cash, which typically helps boost the stock price and shows management thinks their shares are worth more than what they're currently trading for.

Market Research Analyst

The timing of this share repurchase announcement is strategically significant in China's customer engagement and marketing technology sector. With current market conditions showing volatility in Chinese tech stocks, this buyback demonstrates a counter-cyclical investment approach. The program's size relative to daily trading volume suggests it could provide meaningful price support while maintaining sufficient market liquidity.

Consider this like a company voting with its wallet - they're saying they believe their own stock is a good investment right now, which often helps restore market confidence and stabilize the stock price. The fact they're using cash on hand rather than borrowing money for this makes it an even stronger signal about their financial health.

SHENZHEN, China, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Aurora Mobile Limited (NASDAQ: JG) (“Aurora Mobile” or the “Company”), a leading provider of customer engagement and marketing technology services in China, today announced the approval of a share repurchase program.

On December 30, 2024, the board of directors of the Company approved a share repurchase program whereby the Company is authorized to repurchase up to US$5 million worth of its ordinary shares (including in the form of American depositary shares) during a 12-month period starting from January 1, 2025.

The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile (NASDAQ: JG) is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises' digital transformation.

For more information, please visit https://ir.jiguang.cn/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Aurora Mobile Limited

E-mail: ir@jiguang.cn

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

FAQ

How much is Aurora Mobile's (JG) share repurchase program worth?

Aurora Mobile's share repurchase program is worth up to US$5 million.

When does Aurora Mobile's (JG) 2025 share buyback program start?

The share buyback program starts on January 1, 2025 and runs for 12 months.

How will Aurora Mobile (JG) fund its share repurchase program?

Aurora Mobile will fund the share repurchases from its existing cash balance.

What methods will Aurora Mobile (JG) use for share repurchases?

Aurora Mobile may repurchase shares through open market transactions, privately negotiated transactions, block trades, and other legally permissible means.

Can Aurora Mobile (JG) modify its share repurchase program?

Yes, the board of directors will review the program periodically and may adjust its terms and size.