Jiranjiogyo Security said on Monday it will push a stronger shareholder return policy with its subsidiary SSR to raise corporate value and maximise shareholder value.

A regulatory filing on Sunday showed Jiranjiogyo Security decided to cancel all 400,000 treasury shares it holds. It also signed a new trust contract for share buybacks and plans to cancel all shares it acquires in the future. It plans to keep buying SSR shares as part of stronger responsible management, judging SSR's share price to be undervalued relative to intrinsic value.

SSR will also cancel all 382,090 treasury shares it holds to raise shareholder value and signed a trust contract for share buybacks. It disclosed that any treasury shares acquired in the future will also be cancelled.

The steps are expected to reduce the combined number of outstanding shares at the two companies by more than about 780,000 shares. The companies expect per-share value and earnings per share (EPS) to improve as the free float shrinks, and see a positive impact on the practical value of existing shareholders' stakes.

A Jiranjiogyo Security official said the decision was aimed at stabilising an undervalued share price and laying the groundwork for mid- to long-term growth. The official said the company would continue to strengthen market trust through tangible business results and an active shareholder return policy.