Jenny Wang's questions to Hello Group Inc (MOMO) leadership • Q4 2024
Question
Jenny Wang asked about the company's capital return policy, noting that this year's special dividend was not larger than in previous years. She questioned if the extended and upsized share buyback program signals a strategic preference for buybacks over dividends going forward.
Answer
COO Sichuan Zhang responded that the company will not institute a regular dividend policy to maintain flexibility for capital allocation towards growth opportunities. She explained that with the stock trading significantly below its cash value, share buybacks currently offer a better return for shareholders. Therefore, management prefers to keep its options open to choose the most value-accretive method of capital return, whether it be dividends, buybacks, or M&A.