Following a more than 35% drop from its peak, Goertek Inc. has increased its share repurchase amount, raising it from 5-10 billion yuan to 10-15 billion yuan. It was noted that the company's closing price yesterday had fallen below its average buyback price of 27.32 yuan, while its controlling shareholder had previously made large-scale purchases around 20 yuan. On the day after announcing the new buyback plan, the company disclosed its buyback progress, showing the repurchase amount had already reached 11.08 billion yuan, indicating a 158 million yuan repurchase on February 2nd.
On the evening of February 1, 2026, Goertek Inc. announced it would increase the total funds for its share repurchase plan from the originally planned 5-10 billion yuan to 10-15 billion yuan, a 100% increase in the lower limit. This adjustment only pertains to the repurchase scale and does not involve changes to the upper price limit, repurchase period, or intended use of the shares.
As of January 31, 2026, Goertek Inc. had cumulatively repurchased 34.497 million shares, representing 0.97% of the total share capital, with a total payment of approximately 9.5 billion yuan. This amount was already close to the upper limit of the original plan and the lower limit of the new plan, with an average repurchase price of about 27.5 yuan per share. The company stated that the increase in the repurchase amount is based on confidence in its future development and recognition of its value, considering the company's actual situation and the need for future employee incentives.
The aforementioned buyback plan was initially announced by Goertek Inc. on April 10, 2025, with an implementation period not exceeding 12 months from that date. The repurchased shares are intended for the company's employee stock ownership plan or equity incentive plan.
When this buyback plan was first announced on April 10, 2025, it was during a period of impact from trade frictions, a time when Goertek's stock had experienced three consecutive daily limit-down declines. While the current situation for Goertek does not involve the rapid decline seen in April 2025, the company's stock price has recently shown persistent weakness. Prior to the announcement of the increased buyback amount, the stock had recorded five consecutive negative closes on the daily chart, having fallen more than 35% from its October 2025 high of 40.53 yuan (adjusted for rights issues).
It is noteworthy that after the initial announcement of the buyback plan, Goertek's stock price showed strong performance over the medium term. From 20.41 yuan before the plan's announcement, the price rose to the October 2025 high of 40.53 yuan in about half a year, representing a maximum increase of 98.58%.
However, by the end of January this year, the company's repurchase amount was already close to the lower limit of the new plan. If the company implements the plan according to the new lower limit of 10 billion yuan, it would mean that only a relatively small number of additional shares need to be repurchased to complete the revised plan. Could the company potentially complete the buyback plan by only repurchasing up to the 10 billion yuan lower limit? When contacted by an investor posing as a reporter, the person answering the phone stated, "This cannot be disclosed for now, but we guarantee [the repurchase amount] will fall within the range."
Nevertheless, after the market closed on February 2nd, the company released an updated buyback progress report. As of February 2, 2026, the company had cumulatively repurchased 40.5481 million shares, accounting for 1.14% of the total share capital. The highest transaction price was 34.09 yuan per share, the lowest was 20.35 yuan per share, and the total amount paid was 11.08 billion yuan (excluding transaction fees), resulting in an average repurchase price of 27.32 yuan per share.
In fact, besides the buyback, the company had previously announced a share purchase plan by its controlling shareholder around the current price level.
On February 27, 2025, the company announced a plan for its controlling shareholder to increase its shareholding using special loans and its own funds, along with a commitment letter for obtaining a special stock purchase loan, with a planned purchase amount of 5-10 billion yuan. On the day before this announcement, the company's stock closed at 29.23 yuan. This price is relatively close to the company's closing price of 26.06 yuan on February 2nd.
According to Goertek's announcements, its controlling shareholder, Goer Group, increased its holdings through centralized bidding on the Shenzhen Stock Exchange during the period from March 4 to March 6, 2025, and again on April 10, 2025, purchasing 3.5684 million shares and 43.8712 million shares, respectively. Goer Group cumulatively increased its holdings by 1 billion yuan, with an average purchase price of 21.08 yuan per share. March 4, 2025, was the initial day of the controlling shareholder's purchases, and on that day, the company's stock closed at 27.81 yuan, which is even closer to the February 2nd closing price of 26.06 yuan.
However, after the controlling shareholder's purchases in March 2025, the company's stock price continued to decline, at one point falling to 16.81 yuan (adjusted) on April 9, 2025. The large-scale purchase by Goer Group occurred on April 10, 2025, when it purchased 43.8712 million shares and completed the purchase plan. On that day, Goertek's stock price fluctuated between 19.6 yuan and 20.47 yuan (adjusted). On the same day, the company announced its buyback plan.
Stimulated by the positive news of the controlling shareholder's purchase and the buyback plan, Goertek's stock price hit the daily limit-up upon opening on April 10, 2025, closing at 20.47 yuan (adjusted). This price of 20.47 yuan is 21.68% lower than the February 2nd closing price of 26.06 yuan. Subsequently, the company's stock price reversed its previous downtrend, nearly doubling in approximately six months.
Public information shows that Goertek Inc.'s main businesses include precision components, intelligent acoustic products, and smart hardware. The company's products are widely used in smartphones, tablet computers, smart wireless headphones, VR virtual reality, MR mixed reality, AR augmented reality, AI smart glasses, smart wearables, smart home devices, automotive electronics, and other end products.
In the first three quarters of 2025, the company achieved revenue of 681.07 billion yuan, a year-on-year decrease of 2.21%; its net profit attributable to shareholders was 25.87 billion yuan, a year-on-year increase of 10.33%. As of February 2nd, Goertek's stock closed at 26.06 yuan per share, with a trailing price-to-earnings ratio (TTM) of 31.78 times.
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