On the evening of July 27, a wave of intensive buyback and shareholding increase announcements swept through A-shares. Fifteen listed companies disclosed buyback plans, two companies released shareholder increase plans, and the total upper limit of the buyback scale exceeded 4.5 billion yuan. Among them, Foxconn Industrial Internet Co., Ltd. led the charge with a buyback amount of 1 billion to 2 billion yuan, compressing the execution window to just 3 months. Star Shares Co., Ltd. made it clear that all repurchased shares would be used for capital reduction. These two details constitute the most noteworthy structural signals in this round of buyback announcements for investors.
Alongside the buybacks, WUS Printed Circuit (Kunshan) Co., Ltd. and Honggong Technology Co., Ltd. disclosed arrangements for bank share buyback special loan fund sources in their plans. China Construction Bank has issued a loan commitment letter of 270 million yuan to WUS Printed Circuit. This marks the substantive implementation of bank system funds participating in listed company buybacks after the regulatory authorities launched the buyback and shareholding increase re-lending tool, indicating that the source of buyback funds is expanding from a single source of own funds to a dual-channel of "own funds plus credit."
From an industry distribution perspective, the companies announcing buybacks this time cover sectors such as electronic manufacturing, automotive parts, AI applications, semiconductors, and new energy, rather than concentrating on a single track. This reduces, to some extent, the possibility that the buyback wave is driven by fluctuations in individual industry prosperity.
Foxconn Industrial Internet's 3-month, 2-billion-yuan Buyback: The "Compressed Version" of a Trillion-yuan Giant
The plan from Foxconn Industrial Internet Co., Ltd. is the largest of this round. The company plans to repurchase 1 billion to 2 billion yuan using a centralized bidding method, with a buyback price ceiling of 103 yuan per share. It is expected to repurchase 9.71 million to 19.42 million shares, accounting for 0.05% to 0.10% of the total share capital. The repurchased shares will be used to maintain the company's value and shareholder equity, and will be sold as per regulations. Any portion not sold after the deadline will be cancelled according to the law.
The noteworthy aspect is the buyback period: 3 months from the date of board approval. This cycle is significantly shorter than the conventional 12-month execution window, meaning the company needs to complete fund allocation and transaction execution in a shorter time, reflecting a clear sense of urgency. The high-priced stock, Puya Semiconductor (Shanghai) Co., Ltd., also chose a 3-month short cycle. Its buyback scale is 30 million to 50 million yuan, but the buyback price ceiling is as high as 909.88 yuan per share. Setting such a high price ceiling means the company has reserved ample operating space and does not want to be constrained by price.
Star Shares' "Capital Reduction and Cancellation": The Hard Option in Buyback Uses
In terms of buyback use, most companies designated the target for equity incentives or employee stock ownership plans. This includes companies such as TGOOD Electric Co., Ltd. (300 million to 600 million yuan), Sanhua Intelligent Controls Co., Ltd. (200 million to 400 million yuan), iFLYTEK Co., Ltd. (100 million to 200 million yuan), Huawu Brake Co., Ltd. (80 million to 150 million yuan), Yunsheng (Ningbo) Co., Ltd. (50 million to 100 million yuan), Guangdong Mingzhu Group Co., Ltd. (100 million to 150 million yuan), Tongxing Technology Co., Ltd. (60 million to 120 million yuan), Yuchen Intelligent Technology Co., Ltd. (15 million to 30 million yuan), Yongzhen Technology Co., Ltd. (40 million to 80 million yuan), and Honggong Technology Co., Ltd. (60 million to 90 million yuan).
Star Shares Co., Ltd. chose a different path: 100 million to 200 million yuan of repurchased shares will be entirely used for reducing registered capital, with a buyback price ceiling of 148.51 yuan per share. Direct cancellation after buyback means a permanent reduction in total share capital, which has a more direct effect on increasing earnings per share than incentive-based buybacks.
The buybacks of Farsoon Technologies Co., Ltd. and Gem-Year Industrial Co., Ltd. are positioned as "maintaining company value and shareholder equity," falling between incentive cancellation and direct cancellation. The buyback of Farsoon Technologies was actively proposed by the actual controller and chairman, Yan Hua, with a scale of 30 million to 60 million yuan. Gem-Year Industrial also set a range of 30 million to 60 million yuan, with a buyback price ceiling of 14 yuan per share.
Loan for Buyback Implemented: WUS Printed Circuit Receives 270 Million Yuan Loan Commitment from CCB
In its announcement, WUS Printed Circuit (Kunshan) Co., Ltd. disclosed that it has obtained a stock buyback loan commitment letter from the Jiangmen Branch of China Construction Bank, with a loan amount not exceeding 270 million yuan. The total buyback amount for WUS Printed Circuit is 200 million to 300 million yuan, and the loan can cover 90% of the upper limit.
Honggong Technology Co., Ltd. simultaneously stated in its plan that the buyback fund source is "own funds and bank share buyback special loans." The company plans to invest 60 million to 90 million yuan, with a buyback price ceiling of 100 yuan per share, for employee stock ownership plans or equity incentives.
Both cases together point to a change: previously, listed company buybacks almost entirely relied on own funds or self-raised funds. The involvement of bank credit funds provides a leverage channel for buybacks, reducing the company's immediate cash pressure.
Shareholding Increases Moving Forward: ST Zhongzhu and Zhongsheng Gaoke Release Shareholder Signals
There are also moves on the shareholding increase front. ST Zhongzhu Co., Ltd. announced that the actual controller of the second-largest shareholder, Meihua Investment, Wu Shichun, plans to increase holdings by 20 million to 40 million shares through his controlled entity, Ningbo Meiling Wofei Enterprise Management Consulting Partnership. Currently, Meihua Investment holds 10.38% of ST Zhongzhu's shares, while Meiling Wofei does not yet hold any shares.
The controlling shareholder of Zhongsheng Gaoke Environmental Protection Co., Ltd., Fuzhou Qianjing, plans to increase its holdings by no less than 30 million yuan within the next 6 months, with the number of shares added not exceeding 5% of the total share capital, and without a price limit. The arrangement of no price ceiling means the shareholder is willing to buy at any market price, conveying a clear recognition of the current valuation.
Some company buybacks are directly initiated by core executives. For example, the buyback of TGOOD Electric was personally proposed by the actual controller and chairman, Yu Dexiang, while the buyback of Farsoon Technologies was proposed by Chairman Yan Hua. Executives initiating buyback motions proactively above the board level carry more personal weight and a stronger signal effect compared to simple company announcements.
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