Caixin News on October 27th (Editor Fang): Share buyback and shareholding loans continue to be implemented. According to Caixin's incomplete statistics, as of the time of publication, this week (October 21st to October 27th), including Sunvim Group, Shangtai Technology, China Merchants Expressway, China Merchants Property Operation & Service, Sinotrans Limited, Zhejiang Rongsheng Environmental Protection Paper, Hengyi Petrochemical, Beijing Lirr High Temperature Materials, Clenergy Technology, Jiangxi Hungpai New Material, Lerr Technology, Milkyway Chemical Supply Chain Service, Liqun Commercial Group, Suzhou Jinhong Gas Co., Ltd., Western Mining, China Merchants Nan Oil, Liaoning Port, Weifu High-Technology Group, Zhejiang Hailiang, Shanghai Waigaoqiao and Anhui Anfu Battery Technology, a total of 21 listed companies have announced information on share buyback, shareholding, and refinancing. Specific details are as shown in the following figures:

State-owned enterprises under the 'China Merchants' group, including China Merchants Expressway, Sinotrans Limited, Liaoning Port, China Merchants Nan Oil, China Merchants Property Operation & Service, and other listed companies, successively disclosed receiving financial support this week after announcing share buyback or shareholding plans last week.

Among them, China Merchants Expressway, a comprehensive road investment and operation service provider with the most complete industry chain, announced on October 24th that the Beijing branch of China Merchants Bank intends to provide a loan amount of no more than 0.433 billion yuan for the company's share buyback project. Previously, on October 16th, China Merchants Expressway announced its plan to repurchase company shares ranging from 0.31 billion yuan to -0.618 billion yuan. The repurchased shares will all be cancelled and the company's registered capital will be reduced accordingly.

China Merchants Expressway, specializing in professional logistics, agency, related businesses, and e-commerce, announced on October 24th that the Beijing branch of China Merchants Bank will provide a loan amount of no more than 0.3794 billion yuan for the company's A-share buyback project. Previously, on October 16th, China Merchants Expressway announced its plan to repurchase shares ranging from 0.271 billion yuan to -0.542 billion yuan, all to be cancelled and the company's registered capital to be reduced. In addition, on October 20th, China Merchants Expressway announced that the company's controlling shareholder, Sinotrans & C CSC, has signed a cooperation agreement with the Beijing branch of CM Bank. CM Bank intends to provide financing support for Sinotrans & C CSC to increase its holdings in listed companies, with a loan amount not exceeding 0.3 billion yuan. The total amount of this shareholding plan is no less than 0.25 billion yuan (inclusive), but not more than 0.5 billion yuan (inclusive).

Analyst Zheng Shuming of Sinolink Securities pointed out in a research report on October 26th that Sinotrans Limited continues to expand its domestic and international market clientele, with increased revenue from strategic and core clients. Domestically, it has won multiple bids for new business from strategic clients. Overseas, it is pushing to build an end-to-end resilient supply chain network covering 48 countries in Europe and service coverage in over 20 countries in Latin America.

Sunvim Group, which owns various types of production equipment including cotton spinning, dyeing, weaving, printing at a world-class level, announced on October 24th that it has signed a 'Listed Company Share Buyback Loan Agreement' with the Industrial Bank. The Industrial Bank will provide 0.138 billion yuan in special loan funds for the company's share buyback. The amount for this repurchase is not less than 0.1 billion yuan and not more than 0.2 billion yuan. In addition, on October 21st, Sunvim Group announced a net profit of 0.337 billion yuan in the first three quarters, a year-on-year increase of 36.94%. In the secondary market, Sunvim Group closed at the daily limit, and looking back over a longer period, the stock price has accumulated a maximum increase of 70% since the low point in February.

Shangtai Technology, one of the top five lithium battery anode material market share in China, announced on October 24 that the company received a "Substantial Loan Commitment Letter" from Bank of China Limited Shijiazhuang Branch, committing to provide 60 million yuan of loan funds specifically for share buyback. Previously, on October 14, Shangtai Technology announced that the total amount for repurchase is not less than 50 million yuan and not more than 0.1 billion yuan to be used for implementing employee stock ownership plan and/or stock-based incentive. In addition, Shangtai Technology announced on October 25 that the net income for the first three quarters of the company was 0.578 billion yuan, a year-on-year increase of 1.72%.

Analyzing the third quarter of 2024, Soochow Securities analysts led by Ceng Duohong predicted that Shangtai Technology's shipment in Q3 2024 would be around 0.064 million tons, a 26% increase over the previous period. The total shipment in Q1-Q3 2024 is estimated at 0.148 million tons, with a projected full-year shipment of 0.21 million tons in 2024, marking a 40%+ increase. In the secondary market, Shangtai Technology closed at the maximum limit last Friday. Looking back in time, the stock price has cumulatively risen by 168% since the low point in February.

Western Mining, a large mining company engaged in the extraction and production of lead, zinc, copper, aluminum, gold, silver, and other alloy products, announced on October 25 that the controlling shareholder West Mining Group and its concerted action parties plan to increase their total equity by 1%-1.729% within 6 months starting from October 28, 2024. The source of the additional funds for shareholding is a combination of own funds and special loans. West Mining Group and its concerted action parties signed a "Loan Commitment Letter Agreement" with Agricultural Bank of China Limited Qinghai Branch, with a loan amount of 0.7 billion yuan.

Anfu Technology, the controlling shareholder of domestic alkaline battery leader Sunwoda Battery, announced on October 22 that the concerted action party Frontsea Glory plans to adjust the shareholding plan, increasing the amount from 10.55 million yuan to not less than 50 million yuan. The revised source of additional funds for shareholding is through a specific loan for shareholding and other self-raised funds. ICBC Nanping Branch committed to provide a loan amount of 30 million yuan to 50 million yuan to Frontsea Glory, to be used for Frontsea Glory to increase its stake in the company through centralized competitive bidding. In the secondary market, Anfu Technology's announcement on the following day (October 23) led to an increase of 8.55%, and over time, the stock price has cumulatively increased by 46% since the low point in June.