Li Auto has initiated a stock buyback program, sources say: it is not "to be completed all at once on the first day."

A reporter learned on March 26 that Li Auto has carried out share repurchases on March 24 and 25. Previously, on March 24, Li Auto announced that its board of directors had approved a share repurchase program. Under the program, the company is authorized to repurchase up to $1 billion worth of Class A ordinary shares and/or American depositary shares during the period from the date of approval through March 31, 2027. Regarding the ongoing share repurchase, the reporter learned from an insider that the repurchase authorization amount disclosed earlier by Li Auto was the authorized size/upper limit. Repurchases are typically executed in batches, in an orderly manner, within the authorization period based on market conditions and trading windows, rather than being required to be concentrated and completed on the first day. The insider also said that since Li Auto has listings in two locations, it must arrange execution in accordance with the trading rules, liquidity, price ranges, and compliance requirements of the two markets. Especially in the Hong Kong stock market, repurchases are subject to clear constraints on factors such as price, trading volume, and time of day (for example, the price may not be higher than a certain percentage above the recent average price, and the repurchase volume is affected by market trading activity). As a result, there is naturally an upper limit on the amount that can be executed in a single day, and the company needs to strictly comply with regulations to execute. “In general, the pace of repurchase execution also takes into account market impact and transaction costs, with the goal of better safeguarding shareholders’ interests. A more objective way to observe is to look at subsequent ongoing disclosures and track the cumulative progress of repurchases over a period of time, rather than focusing only on the amount for a single day.” The insider added. (The Economic Daily News)