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Midea Group’s stock experienced an increase following the announcement of its largest-ever share repurchase plan. Shares in the company rose 5.9% to CNY76.35 ($11.05) in Shanghai and 6.8% to HKD83.80 ($10.69) in Hong Kong.
The company intends to repurchase shares listed in Shenzhen at up to CNY100 ($14.47) each, with a total buyback range between CNY6.5 billion and CNY13 billion ($941.1 million to $1.9 billion). The repurchase is scheduled to occur within 12 months after approval by the board of directors and will be allocated for employee shareholding schemes and equity incentives.
Funding for the buyback will come from the company’s internal resources as well as a special loan arranged by the state-owned Bank of China. The loan will have a maximum term of three years and will not exceed 90% of the total repurchase value, with a cap of CNY11.7 billion — the largest loan given under this policy since its inception in October 2024.
This share repurchase reflects Midea’s confidence in its future growth and aims to boost investor confidence, improve shareholder returns, enhance corporate governance, and establish a long-term incentive mechanism for management’s equity holdings.
Additionally, the company released its 2025 earnings report showing a 14% increase in net profit to CNY43.9 billion from the previous year, with revenue climbing 12% to CNY458.5 billion ($66.4 billion), both reaching record highs.
Midea announced that it will pay dividends of CNY38 per 10 shares, supplementing the earlier interim dividend of CNY5 (about 72 US cents) per 10 shares. Altogether, the company plans to distribute CNY32.4 billion in dividends for 2025, representing 74% of its net profit for the year.
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