Changxin Technology proposes 5 billion yuan share buyback program

Changxin Technology chairman Zhu Yiming has proposed increasing the company's share buyback plan to a range of 2.5 billion to 5 billion yuan. If approved, the move will set a new record for the highest single share repurchase amount on the Shanghai Stock Exchange's STAR Market.

The revised plan follows an initial October 30 resolution to repurchase between 1 billion and 2 billion yuan of shares. The company intends to allocate half of the repurchased shares to employee stock ownership and incentive plans, while the remainder will be cancelled to reduce registered capital.

The decision comes as the company’s stock faced significant selling pressure, hitting a record low of 38.80 yuan per share on November 3 and shedding over 1 trillion yuan in market capitalization from its peak. Despite the volatility, Changxin reported a strong financial turnaround for the first three quarters of the year, posting a net profit of 132 billion yuan on revenue of 269 billion yuan.