Zhongda Commodity Trading Chairman Proposes Company Repurchase Shares for 200 Million to 400 Million Yuan; Company Stock Price Has Declined Approximately 13% Since March

Meiri Reporter | Wen Duo Meiri Editor | Huang Bowen

On the evening of March 25, Wuchan Zhongda (SH600704, stock price 5.09 yuan, market value 26.3 billion yuan) announced that Chairman Chen Xin proposed the company repurchase some shares through centralized bidding, with a repurchase amount of 200 million to 400 million yuan, funded by the company’s own funds. The repurchased shares will be used to maintain company value and protect shareholders’ interests.

This proposal has attracted investor attention regarding a reassessment of the company’s value.

According to the announcement on the evening of March 25, Chairman Chen Xin submitted a letter titled “Proposal for Wuchan Zhongda Group Co., Ltd. to Repurchase Shares.”

The announcement states that Chen Xin proposed that the share repurchase be conducted via bidding.

Regarding the repurchase price, Chen Xin proposed that the upper limit not exceed 150% of the average trading price of the company’s stock over the 30 trading days prior to the approval of the share repurchase plan by the board of directors. The final price will be determined based on the plan approved by the board.

As for the purpose of the share repurchase, Chen Xin clarified that it is “necessary to maintain company value and protect shareholders’ interests.” He also stated that the repurchased shares will be disposed of in accordance with regulatory rules, and any unsold shares within the specified period will be legally canceled.

At the same time, Chen Xin committed to actively promote the company to hold a board meeting as soon as possible to review the share repurchase matter and will vote in favor of the proposal at the board.

Wuchan Zhongda’s announcement also notes that the company will formulate a reasonable and feasible share repurchase plan based on the above proposal as soon as possible. However, the final plan still needs approval from the board of directors, and the final approved plan may differ from this announcement. The specific details will be subject to the final approval by the board.

According to the 2024 annual report, Wuchan Zhongda’s business includes intelligent supply chain integration services, financial services, and high-end manufacturing, with intelligent supply chain integration being the core revenue source.

From the timing of the announcement, Wuchan Zhongda’s recent stock performance has indeed faced pressure.

On March 25, the stock closed at 5.09 yuan per share, down about 13% from 5.85 yuan at the end of February.

Over the past month, the stock price gradually declined from 5.85 yuan on February 27, reaching a low of 4.86 yuan on March 23, before rebounding somewhat. Valuation-wise, the rolling P/E ratio decreased from 7.96 times on February 27 to 6.93 times on March 25, and the price-to-book ratio fell from 0.75 to 0.64 over the same period, both at relatively low levels.

In the first three quarters of 2025, Wuchan Zhongda reported operating revenue of 432.979 billion yuan and net profit attributable to the parent of 3.051 billion yuan; as of the end of Q3 2025, the company’s asset-liability ratio was 73.11%.

Looking at historical share repurchase records, Wuchan Zhongda has carried out multiple restricted stock repurchases and cancellations, demonstrating some experience in market value management.

However, whether the repurchase can truly boost the stock price depends on multiple factors, including the overall market environment, investor confidence, and the company’s future performance.

Cover image source: Meiri Media Library