Over 10 billion yuan buyback! A-shares and Hong Kong-listed companies announce major buyback plans

On the evening of March 30, A-share and Hong Kong-listed companies issued buyback plan announcements in large numbers.

On the A-share front, on March 30, Midea Group rolled out a buyback plan of up to RMB 13.0 billion, and SF Holding adjusted the total buyback funds to RMB 3.0 billion to RMB 6.0 billion. Data shows that, as of the close of trading on March 30, 198 A-share listed companies had already carried out buybacks during the month.

Specifically:

• Midea Group: Plans to buy back A-share stocks for RMB 6.5 billion to RMB 13.0 billion

In an announcement, Midea Group (000333.SZ) said its board of directors approved a share buyback plan. The company plans to repurchase A-share stocks via centralized competitive bidding, with a buyback amount of no less than RMB 6.5 billion and no more than RMB 13.0 billion, and a buyback price of no more than RMB 100 per share. The buyback funds will come from the company’s own funds and special loans provided by the Bank of China Shunde sub-branch (the loan will not exceed 90% of the buyback amount). The repurchased shares will be used to implement an equity incentive plan and/or an employee share ownership plan, with the term within 12 months from the date the board approves the plan.

On the same day, Midea Group released its 2025 annual report, achieving total operating revenue of RMB 458.5 billion, up 12.1% year over year; net profit attributable to shareholders of listed companies was RMB 43.95 billion, up 14% year over year. During the reporting period, Midea Group’s net cash flow from operating activities was RMB 53.3 billion. The company plans to distribute a cash dividend of RMB 3.8 per 10 shares. Midea Group’s full-year net profit attributable to the parent is used 100% to reward shareholders; cash dividends plus share buybacks total RMB 44.0 billion. Adding this dividend to the RMB 5 per 10 shares interim dividend in 2025, Midea Group will distribute RMB 43 per 10 shares for the full year; the total amount of full-year cash dividends is RMB 32.4 billion. According to statistics, over the past 10 years, Midea Group’s cumulative dividends have exceeded RMB 150.0 billion.

• SF Holding: Adjusts total buyback funds to RMB 3.0 billion to RMB 6.0 billion

SF Holding (002352.SZ) said in an announcement that it will adjust the total buyback funds under its 2025 A-share share repurchase plan. The total will be changed from “not less than RMB 1.5 billion and not more than RMB 3.0 billion” to “not less than RMB 3.0 billion and not more than RMB 6.0 billion,” and the implementation period of the buyback will be extended to end 12 months from the date the board of directors reviews and approves the change to the buyback plan. The purpose for repurchased shares will be changed from “to be used for an employee share ownership plan or an equity incentive” to “to be used to cancel shares and reduce registered capital.”

• Seres: Plans to buy back shares of RMB 1.0 billion–RMB 2.0 billion to reduce the company’s registered capital

Seres (601127.SH) said in an announcement that it plans to buy back shares with a buyback amount of no less than RMB 1.0 billion and no more than RMB 2.0 billion. The buyback price will not exceed RMB 150 per share. The funds will come from its own funds, and the repurchased shares will be used to reduce the company’s registered capital.

In addition, Foxconn Industrial Internet (601138.SH) announced on the evening of March 30 that its current share buyback plan has reached the lower limit of the buyback amount and the buyback has been completed. The total actual funds used for this buyback were RMB 500 million. A total of 14.1035 million shares were repurchased, accounting for 0.07% of the total share capital. The buyback price range was RMB 18.40 per share to RMB 63.40 per share, with a weighted average price of RMB 35.45 per share. According to the plan, all repurchased shares will be used to cancel shares and reduce registered capital. The cancellation date will be March 31, 2026.

On the Hong Kong stock market front, data shows that on March 30, 37 Hong Kong-listed companies conducted share buybacks, totaling 73.3513 million shares repurchased and a buyback amount of HKD 1.495 billion. Xiaomi Group (01810.HK) repurchased 5.0 million shares of its B class on March 30, spending HKD 161.6 million. Haier Smart Home (06690.HK) released an announcement: on March 30, it spent RMB 58.1933 million to repurchase 2.7 million A shares, with a buyback price of RMB 21.46–21.6 per share.

For U.S.-listed China concept stocks, iQiyi (Nasdaq:IQ) announced on March 30 that it will repurchase shares worth up to USD 100 million in the next 18 months (including in the form of American depositary shares).

Regarding the phenomenon of listed companies actively carrying out share buybacks, experts generally hold a positive view. They believe it is beneficial for market stability and also for giving back to investors, which is a direction worth encouraging.

According to Securities Times, Yang Delong, chief economist at Qianhai Open-Source Fund, said that after the introduction of the new “Nine Articles of the Country,” China has continued to roll out various measures to improve the overall quality of listed companies. On the listing side, China tightly controls the entry gate, decisively keeping companies that do not meet listing requirements out of the door, thereby improving the quality of listed companies from the source. For companies that have already been listed, China strengthens regulation and encourages listed companies to give back to investors through ways such as cash dividends or buybacks, so that more investors are willing to become shareholders of companies—this not only increases returns to investors but also reflects the social responsibility of listed companies.

(Source: 21st Century Business Herald)