XD

This monthly return provides a formal disclosure of the share capital movements for XD Inc., a company listed on the Stock Exchange of Hong Kong, for the period ending August 31, 2026. The primary purpose of the filing is to report changes in the issuer’s issued share capital resulting from corporate actions, specifically the cancellation of repurchased shares, and to confirm ongoing compliance with public float requirements.

During August 2026, the company’s total issued share capital decreased by 5,427,600 ordinary shares. This reduction was attributed to the redemption and cancellation of shares, which were approved during a general meeting held on May 28, 2026. As of the month's end, the total number of issued shares stood at 483,880,364, down from 489,307,964 at the close of the preceding month. The authorized share capital remained unchanged at 1,000,000,000 shares with a par value of USD 0.0001 per share.

The filing confirms that XD Inc. maintains compliance with the minimum public float requirement, which is set at 25% of the total number of issued shares. The report indicates no activity regarding share options, convertibles, or other agreements to issue new shares during the reporting period. All data presented adheres to the regulatory standards set by the Hong Kong Exchanges and Clearing Limited for equity issuers.

The monthly return for XD Inc. provides a formal disclosure of movements in the company’s equity securities for the period ending 31 July 2026. Filed with the Hong Kong Exchanges and Clearing Limited, the report serves to update stakeholders on changes to authorized share capital, issued shares, and share option schemes, ensuring compliance with the regulatory requirements of the Hong Kong Stock Exchange.

During July 2026, the company’s issued share capital increased by 800 ordinary shares, resulting from the exercise of options under the Share Option Plan adopted on 25 June 2021. This activity raised a total of HKD 17,312. As of the month's end, the total number of issued shares stood at 489,307,964, while the authorized share capital remained unchanged at 1,000,000,000 shares with a par value of USD 0.0001. The report also notes that 5,474,400 shares were repurchased for cancellation in May 2026 but remained pending cancellation as of the end of July.

The issuer confirms that it maintains compliance with the required public float threshold of 25%, as mandated by the Main Board Listing Rules. The document concludes with formal declarations from the company’s executive director, affirming that all securities issuances and regulatory filings were conducted in accordance with applicable laws and listing requirements. The scope of this disclosure is limited to the equity movements of XD Inc. for the specified month, providing a transparent record of the company's capital structure and share-based incentive activities.

The submission reports the equity movements of XD Inc. for May 2026, detailing authorised capital, issued shares, treasury holdings, and public float compliance. Authorised share capital remained unchanged at 1 billion ordinary shares with a nominal value of HKD 0.0001, equating to USD 100,000 in authorised capital. Issued shares decreased from 492,433,164 to 489,302,364, a net reduction of 3,130,800 shares, all of which were ordinary shares. Treasury share balances stayed at zero throughout the month.

Share‑option activity under a plan adopted in June 2021 contributed 5,200 new ordinary shares to the issued pool, raising HKD 172,858. Concurrently, share repurchases and cancellations reduced the issued count by 3,136,000 shares; 285,000 of these were repurchased but not yet cancelled as of May 31, and 3,136,000 shares were repurchased and cancelled on May 19. No other convertible or alternative share‑issuance mechanisms were employed.

Public float sufficiency was confirmed, with the company meeting the 25 % minimum threshold based on total issued shares excluding treasury holdings. The issuer affirmed that all board authorisations, regulatory compliances, and financial settlements related to the movements were satisfied. No new listing conditions or legal filings were outstanding beyond routine corporate obligations.

Overall, XD Inc.’s May 2026 equity activity involved a modest net dilution from option exercise offset by significant share repurchases, maintaining compliance with Hong Kong Exchange listing rules and preserving adequate public float.

The announcement details XD Inc.’s launch of a HK$400 million Automatic Share Buy‑Back Program, effective June 12 2026 and scheduled to conclude by November 11 2026 or earlier if the cap is reached. The program is governed by a Share Buy‑Back Agreement with an independent broker, who will execute purchases independently of the company and its connected persons. The broker’s actions are constrained by pre‑determined parameters, ensuring non‑discretionary buy‑backs that comply with Listing Rules and the Securities and Futures Ordinance. A waiver from Rule 10.06(2)(e) was granted by the Stock Exchange, allowing buy‑backs during restricted periods surrounding interim results announcements; this waiver is justified by guidance letter GL117‑23 and aims to reduce operational burdens while mitigating insider‑trading risks. The program’s scope covers the Hong Kong Stock Exchange, with a five‑month duration and a target of HK$400 million in share repurchases. The company confirms that all bought‑back shares will be cancelled, and the program is not expected to trigger mandatory offer obligations under the Takeovers Code. Methodologically, the broker will disclose each purchase via next‑day disclosure returns, maintaining information barriers to prevent insider information flow. The Board views the program as beneficial for shareholders and emphasizes that buy‑backs will be subject to market conditions and broker discretion within the set parameters.

XD Inc. achieved substantial financial growth throughout the 2025 fiscal year, characterized by a 15% increase in total revenue to RMB 5.76 billion and a significant surge in profit attributable to equity holders, which reached RMB 1.54 billion. This performance was underpinned by a 10.5% rise in gaming revenue, bolstered by the success of titles such as Heartopia and Torchlight: Infinite, alongside a 24.7% revenue increase within the TapTap platform. The company’s financial health was further strengthened by an improved gross margin of 73.8% and a robust cash position of RMB 3.77 billion, supported by a strategic reduction in the cost of revenues and a lower gearing ratio of 22.5%.

The company’s strategic focus remains centered on cross-platform expansion and the integration of AI-driven development tools to secure long-term competitiveness. While financial metrics showed marked improvement, the company observed a decline in online game user metrics, specifically monthly active users and monthly paying users. To address these shifts, management has prioritized capital optimization through active share repurchases and the maintenance of employee incentive programs. Notably, the board opted against a final dividend for 2025, citing a commitment to capital reinvestment and a need to address corporate governance concerns regarding the consolidation of the chairman and CEO roles.

These results reflect a period of operational consolidation and international market penetration for the China-based firm. The financial figures, which have been reviewed by the Audit Committee and aligned with the group’s consolidated statements, demonstrate a transition toward higher profitability and operational efficiency. By leveraging the acquisition of the Torchlight intellectual property and refining advertising algorithms on the TapTap platform, the company aims to sustain its growth trajectory despite the challenges posed by fluctuating user engagement metrics in the broader gaming sector.

The filing reports a series of share repurchase activities by XD Inc., a Hong Kong-listed company (stock code 02400). On 12 February 2026, the issuer repurchased 24,000 ordinary shares on the Exchange at a price of HKD 81.65 per share, with an aggregate outlay of HKD 1,923,420. The repurchase was conducted under a mandate approved on 29 May 2025, authorising up to 49,167,523 shares for repurchase and allowing a moratorium on new issues or treasury‑share sales until 14 March 2026. The repurchased shares are earmarked for cancellation, leaving no treasury‑share balance.

The disclosure also lists 21 separate repurchase events between 13 and 28 January 2026, each involving a small number of shares (ranging from 600 to 25,000) repurchased for cancellation at prices between HKD 77.8 and HKD 87.39 per share. These transactions cumulatively reduced the issued‑share count by 0.004–0.005 % of the existing share base, with total repurchased shares amounting to 600 + 20,000 + 23,200 + … + 24,000 = approximately 400,000 shares. The aggregate repurchase price per share varied across events but remained within a narrow band.

The report confirms compliance with Hong Kong Main Board Rules and GEM Rules, noting that no material changes have occurred since the explanatory statement filed on 30 April 2025. No treasury‑share sales were reported, and the repurchase activities are fully disclosed under the applicable regulatory framework.