China Securities Journal Golden Bull | A Wave of Positive Signals: SSE Main Board Companies Publish Positive Announcements

From the evening of October 16 to the evening of October 18, companies listed on the Shanghai Stock Exchange (SSE) sent a series of positive signals. More than 30 SSE Main Board companies have made positiveannouncements, including 23 announcements on share buybacks and shareholding increases and eight on earnings and dividends.

Share buyback and shareholding-increase activities among technology companies have continued to gain momentum.Data shows that technology companies have been the main drivers of new buyback plans on the SSE Main Board. Four companies—OmniVision Integrated Circuits, Dawning Information Industry, Shengyi Technology, and Shenzhen Kinwong Electronic—announced their buyback plans, with the aggregate upper limit of the proposed buybacks amounting to RMB 1.4 billion.

Specifically, OmniVision Integrated Circuits disclosed a buyback plan under which it intends to repurchase A-shares through call auction. The proposed buyback amount ranges from RMB 250 million to RMB 500 million, with a maximum buyback price of RMB 120 per share. The buyback period will not exceed three months from the date of approval by the Board of Directors. The repurchased shares are intended for employee stock ownership plans or equity incentives.

Dawning Information Industry, Shengyi Technology, and Shenzhen Kinwong Electronic each announced a share buyback proposal initiated by their respective chairpersons, with an aggregate upper limit of RMB 900 million. Citing confidence in their companies' continued development and recognition of their corporate value, as well as a plan to further establish long-term, sound incentive mechanisms, the chairpersons of the three companies proposed repurchasing A-shares through call auction, with total buyback amounts of RMB 300 million to RMB 500 million, RMB 200 million to RMB 300 million, and RMB 50 million to RMB 100 million, respectively. All shares repurchased are intended for equity incentives or employee stock ownership plans.

Strong earnings momentum in niche technology segments is a substantial source of such confidence.The earnings forecast for the first three quarters of 2026, released by Shengyi Technology on the evening of October 16, projects net profit attributable to shareholders of RMB 6.46 billion to RMB 6.87 billion, up 164% to 181% year on year.The company said that products developed in the early part of the first half of the year were launched and contributed to profits, and expanded capacity was fully released in a timely manner to meet market demand for copper-clad laminates, boosting both revenue and gross profit from such products. Its subsidiary, Shengyi Electronics, benefited from strong demand in the AI computing sector, with the share of high-value-added products in its portfolio continuing to rise and its competitive advantage further strengthened.Hengtong Optic-Electric, another beneficiary of favorable industry conditions, forecast net profit attributable to shareholders of RMB 5.97 billion to RMB 6.37 billion for the first three quarters of 2026, a year-on-year increase of 151.27% to 168.10%, driven by rising demand and prices in the optical communications market.

Regarding shareholding increases and buybacks, during the same period, one SSE Main Board company announced a shareholding-increase plan, while 18 companies disclosed updates on the progress of their buyback and shareholding-increase plans. These actions demonstrate these companies' confidence in their long-term investment value through tangible financial commitments.For example, Hunan Meihu Intelligent Manufacturing announced a shareholding-increase plan under which Xu Zhongqiu, the company's controlling shareholder, actual controller, and Chairman, intends to increase his shareholding in the company through call auction over the six months beginning on October 19. The proposed investment ranges from RMB 10 million to RMB 20 million.

Meanwhile, positive developments have been seen on the product front. Ruihua (Zhongshan) Pharmaceutical, a wholly owned subsidiary of Zhejiang Jiuzhou Pharmaceutical, has obtained its first EU GMP certificate. The inspection covered its granule production line with an annual capacity of 80 million sachets. The certification indicates that its quality management system meets EU standards and is expected to support its expansion into regulated markets worldwide. A wholly owned subsidiary of Zhejiang Tenchen Controls has received a supplier nomination notice for a passenger vehicle seat assembly project from a well-known automotive joint venture. Mass production is expected to begin in March 2027. Spanning a five-year lifecycle, the project will supply approximately 55,000 passenger vehicles, underscoring customers' recognition in the company's ability to support overseas automotive programs.