In January 2026, based on buyback proposals announced by A-share companies, both the number of intended buybacks and the scale of buybacks declined, although large-scale repurchases still constituted the mainstream trend. Market dynamics showed frequent activity from numerous enterprises: industry leaders such as Hengyi Petrochemical and Shiji Huatong introduced substantial buyback proposals, while several other companies recently announced adjustments to the intended use of previously repurchased shares. Midea Group once again topped the list for the highest single-month buyback amount in January. Furthermore, seven companies have adjusted their existing buyback plans since the start of January, with World Lithium & Energy, the global leader in lithium battery electrolyte additives, proposing to raise its maximum buyback price by nearly 3.7 times.
According to statistics from Tonghuashun iFinD, a total of 26 A-share companies disclosed new buyback proposals in January 2026, a decrease compared to the 35 companies in December 2025. Based on announcement data, the combined upper limit of the intended buyback amount for these 26 companies was approximately 5.682 billion yuan, a 46.13% decrease from the 10.548 billion yuan in December. This indicates a clear trend of decline in both the number and scale of new proposals. However, structurally, large-scale buybacks remained dominant, with 18 companies having an intended buyback upper limit exceeding 100 million yuan (inclusive), accounting for 69.23% of the total, reflecting companies' firm confidence in their own value.
Ranked by the upper limit of the intended buyback amount, companies such as Hengyi Petrochemical, Jinkai New Energy, Shiji Huatong, Jiaze New Energy, Jintian Copper, and Xingfa Group were at the forefront. Their respective intended buyback upper limits were: 1 billion yuan, 600 million yuan, 600 million yuan, 440 million yuan, 400 million yuan, and 400 million yuan.
As a global leader in the integrated "refining-chemicals-chemical fibers" industrial chain, Hengyi Petrochemical's buyback actions have drawn significant market attention. The company disclosed its sixth-phase buyback plan on January 23, proposing to repurchase shares with 500 million to 1 billion yuan for an employee stock ownership plan or equity incentive. However, Hengyi Petrochemical's stock price has been rising steadily recently. Shortly after the new buyback plan was announced, the stock price reached a near three-year high of 12.7 yuan on February 6. What considerations led the company to propose a buyback plan at a relatively high stock price level? A representative from Hengyi Petrochemical stated that it was primarily due to strong, long-term confidence in the company.
It was also noted that Hengyi Petrochemical has obtained a "Loan Commitment Letter" with an upper limit of 900 million yuan to provide funding for this buyback, the highest amount among the 26 companies disclosing buyback proposals in January. The aforementioned representative also indicated that funding for the buyback was not a major issue.
On the same day it announced the new buyback plan, Hengyi Petrochemical also announced an adjustment to the use of shares repurchased in its third-phase buyback. It changed the purpose of shares repurchased in October 2023 from "for convertible bond conversion" to "for employee stock ownership plan or equity incentive." Regarding the reason for the change, the company stated it was partly because the third-phase repurchased shares were nearing their expiration date, making conversion uncertain, and also based on confidence in the company's future development.
According to the "Rules on Share Repurchases by Listed Companies," shares repurchased for purposes such as convertible bond conversion, employee stock ownership plans, equity incentives, or maintaining company value and shareholder rights must be transferred according to the disclosed purpose within three years. If not transferred according to the disclosed purpose, they must be canceled before the end of the three-year period. Based on company announcements, the three-year validity period for Hengyi Petrochemical's third-phase repurchased shares is set to expire in October 2026. Why did the company not choose to cancel the shares directly? The representative stated, "This is a company decision; each company's situation is different. Our actions are reasonable and compliant."
Furthermore, the seventh-phase employee stock ownership plan (draft) simultaneously launched by Hengyi Petrochemical on January 23 supports the utilization of these existing shares – the company plans to raise funds not exceeding 1.112 billion yuan for the employee stock ownership plan, with the source of shares being the aforementioned 151 million shares repurchased in the third phase.
Hengyi Petrochemical is not an isolated case. Among companies announcing buyback proposals in January, several recently changed the intended use of previously repurchased shares. Among them, both Jinkai New Energy and Hengtong Shares announced on the same day they publicized their new buyback plans that they would change the use of shares repurchased in 2024 from "for employee stock ownership plan or equity incentive" to cancellation for capital reduction. The existing repurchased shares of these two companies still had more than a year remaining before their three-year validity period, meaning the adjustment was made earlier than the statutory deadline.
Jinkai New Energy stated that this adjustment was a decision made based on the company's actual operating conditions and overall strategic planning, aimed at enhancing the company's long-term investment value, improving earnings per share, and further strengthening investor confidence.
Additionally, Teruis, a National Level "Little Giant" specialized and sophisticated SME listed on the Beijing Stock Exchange, announced in late October last year that it would change the use of shares repurchased in two phases in 2023 (totaling 1.8452 million shares) to cancellation for capital reduction.
Notably, the intended use of the new buyback plans announced by these three companies in January was cancellation for capital reduction. This means these companies are not only properly disposing of existing repurchased shares within the statutory period by canceling them but are also continuing to implement cancellation-style buybacks with new plans, using real capital to increase earnings per share, boost investor confidence, and protect the interests of minority shareholders.
Meanwhile, Shiji Huatong, a leader in the gaming industry, has attracted market attention due to its intensive and efficient buyback operations. In early December 2025, the company completed a 1 billion yuan buyback plan at the maximum amount in just two days, for cancellation and capital reduction. Immediately following that, within the same month, it specified the use of 1.28 million shares repurchased at the end of 2022 as cancellation for capital reduction. Entering January 2026, the company again executed a "buyback blitz." It disclosed a buyback proposal of 300 million to 600 million yuan on January 5, initiated the buyback on January 9, and completed it on the same day, with an actual repurchase amount of 301 million yuan, declaring the plan complete once the lower limit of the intended amount was reached. Within just over a month, the company's cumulative buyback amount exceeded 1.3 billion yuan, placing its repurchase efficiency among the highest in the market.
Regarding the differentiated operations of the two-phase buyback plans, an explanation was provided by a relevant staff member from Shiji Huatong's investor hotline: the nature of the two buyback plans is different. The December 2025 buyback of 1 billion yuan at the upper limit was for share cancellation, which is essentially a form of dividend distribution. The company's current situation is that the parent company's standalone financial statements show a loss, allowing it to refrain from cash dividends. However, the profitability of the listed company is improving year by year, and it cannot be guaranteed that the parent's standalone statements will continue to show losses in the coming years. At that point last year, it was also impossible to forecast this year's earnings accurately. According to relevant exchange regulations, if the parent's standalone statements turn positive, and the cumulative dividend amount over the past three years is less than 30% of the average annual net profit for those three years, the listed company could face an ST (Special Treatment) designation for other risk warnings. Therefore, the buyback amount was maximized to avoid potential "non-compliance" and another ST designation later. Thus, the previous buyback, occurring within 2025, was primarily executed for this reason.
The January buyback of 300-600 million yuan, however, is intended for an employee stock ownership plan or equity incentive. This requires consideration not only of the listed company's available funds but also of the employees' financial capacity. Apart from the large cancellation in December, the company also performed a small cancellation. These 1.28 million repurchased shares were originally intended for employee stock ownership or equity incentives. However, since the shares were not granted within three years, the unused portion must be mandatorily canceled. Importantly, canceling such repurchased shares does not count as a dividend, which is effectively a loss for the listed company and difficult to accept. Furthermore, buyback plans for equity incentives do not require a shareholders' meeting approval process, offering high operational flexibility. It can be observed that most companies conducting buybacks for employee stock ownership or equity incentive reasons tend to operate near the lower limit of the proposed amount.
According to Tonghuashun data, among companies currently implementing buybacks, approximately 325 had disclosed their latest buyback progress as of the end of January 2026. Among these, about 108 companies had reached the cumulative lower limit of the buyback amount, with the buyback process still proceeding normally. Another 45 companies announced the completion of their buybacks in January.
Looking at the January buyback amount ranking, leaders from various sectors stood out. Midea Group, Kweichow Moutai, SF Holding, Shiji Huatong, and Yanjin Shop ranked at the top, with single-month buybacks of 488 million yuan, 451 million yuan, 357 million yuan, 301 million yuan, and 218 million yuan, respectively.
Among these, the cumulative buyback amounts for both Midea Group and SF Holding had already exceeded the lower limit of their intended buyback amounts, but their repurchase rhythms differed significantly. Midea Group disclosed its current buyback plan on April 8, 2025, initiated the first repurchase on April 9, and reached the lower limit of the intended buyback amount by the end of June. The buyback then stalled for half a year. In January 2026, the company resumed buybacks, repurchasing 488 million yuan in the single month, again leading the monthly buyback ranking. The cumulative repurchase now stands at 1.998 billion yuan, still 100.2 million yuan short of the 3 billion yuan upper limit. Whether the company will continue repurchases up to the upper limit subsequently is unclear; a relevant Midea Group staff member stated the company would make a comprehensive decision.
In contrast to Midea Group's "phased approach," SF Holding maintained a steady repurchase pace. The company disclosed its buyback proposal on April 29, 2025, formally initiated the buyback in September, and has conducted buybacks every month since. As of February 3, 2026, the company had cumulatively repurchased 2 billion yuan, accounting for approximately 1.01% of the total share capital, indicating stable progress.
Shiji Huatong and Yanjin Shop completed their plans swiftly and efficiently in January. Yanjin Shop released its buyback proposal on December 18 last year, intending to repurchase 2.6 million to 3 million shares, with an estimated amount of 284 million to 328 million yuan. The company initiated the first buyback on January 5, 2026, and completed the repurchase by January 15. Within 9 trading days, it cumulatively repurchased 2.999 million shares, nearing the upper limit of the intended quantity. However, due to the actual repurchase price range (69.87 yuan/share to 75.38 yuan/share) being significantly lower than the intended maximum price (109.32 yuan/share), the cumulative buyback amount of 218 million yuan did not reach the aforementioned lower limit of the intended amount. Regarding this, a staff member from Yanjin Shop's securities center clearly stated that this buyback had met its target. Because the company had set an upper limit on the number of shares to be repurchased, and the actual number repurchased was almost at the maximum, the buyback plan was concluded.
Additionally, it was observed that since January, at least seven companies have announced adjustments to their buyback plans. Apart from Goertek increasing the total buyback funds, the other six companies raised the upper limit of their intended buyback price. The primary reason in most cases was that rising stock prices rendered the original price ceiling insufficient for executing repurchases.
World Lithium & Energy, the global leader in lithium battery electrolyte additives, implemented the largest increase in its buyback price ceiling. The company disclosed its current buyback plan in March 2025, intending to repurchase 50 million to 100 million yuan worth of shares with a maximum price of 32 yuan/share. However, since the end of June, the company's stock price has mostly exceeded this ceiling. After November, the price rose significantly, reaching a listing high of 155 yuan/share on November 17. This prevented the company from continuing buybacks due to the price constraint after cumulatively repurchasing 42.2095 million yuan by the end of June, leaving a gap of several million yuan to the lower limit. As this buyback is scheduled to expire on March 24, 2026, World Lithium & Energy announced on January 28 that it would raise the maximum buyback price from 32 yuan/share to 150 yuan/share, an increase of 368.75%. When asked about the timing of the adjustment and subsequent buyback plans, a relevant staff member from World Lithium & Energy stated that the decision to raise the price was made by the company's leadership after comprehensive consideration of stock price fluctuations. Specific progress on the buyback will be based on announcements, and the company will complete the repurchase within the stipulated time frame.
Two innovative drug companies, Rongchang Biologics and Aurisco Pharmaceutical, successfully completed their buyback plans in January by adjusting their price ceilings. Rongchang Biologics disclosed its proposal on December 16, 2025, with an intended maximum buyback price of 95 yuan/share. However, the company's stock price rose after the start of 2026 and soon breached this price ceiling, preventing the buyback from starting. The company reacted swiftly, raising the price ceiling to 116 yuan/share on January 16. It then rapidly repurchased 20.004 million yuan on January 20, precisely hitting the lower limit of the intended amount and declaring the buyback plan complete.
Aurisco Pharmaceutical adjusted its buyback price under pressure from its stock price shortly before the buyback period expired. The company disclosed its buyback plan on January 22, 2025, with an intended maximum price of 25 yuan/share, later adjusted to 24.71 yuan/share due to profit distribution. Throughout 2025, the company's stock price generally moved sideways, mostly staying below the intended maximum price. However, the company's overall buyback pace was slow. By the end of December, it had cumulatively repurchased 55.1244 million yuan, still about 4.9 million yuan short of the 60 million yuan lower limit. However, the stock price continuously exceeded the buyback price ceiling from the end of December. With the buyback set to expire on January 20, the company raised the price ceiling to 35 yuan/share on January 13 to successfully complete the plan. It ultimately reached a cumulative repurchase of 60.0285 million yuan on the expiry date, just meeting the intended lower limit.
Disclaimer: This content and data are for reference only and do not constitute trading advice. Please verify before use. Operate at your own risk.
Comments