(Yicai) March 31 -- Midea Group’s stock climbed after the Chinese home appliance giant announced its largest-ever share repurchase plan.

Midea [SHE: 000333; HKG: 0300] rose 5.9 percent to CNY76.35 (USD11.05) in Shanghai and 6.8 percent to HKD83.80 (USD10.69) in Hong Kong today.

Midea plans to buy back Shenzhen-listed shares at up to CNY100 (USD14.47) apiece for a total of CNY6.5 billion to CNY13 billion (USD941.1 million to USD1.9 billion) in the 12 months after the plan is approved by the board of directors, the Foshan-based firm announced yesterday. The repurchased shares will be used for equity incentives and employee shareholding plans.

The funds for the buyback scheme will come from the company’s own resources and a special loan, which will be provided by state-owned commercial lender Bank of China. With a maximum term of three years, the loan will not exceed 90 percent of the actual repurchase value.

Special loans for share buybacks are a policy-based financial tool aimed at maintaining the stable operation of the stock market. BOC will provide Midea with a maximum loan of CNY11.7 billion, the largest single loan amount since the tool was created in October 2024.

The repurchase scheme is based on Midea’s confidence in its future development prospects and the high recognition of its value, and is conducive to enhancing investor confidence, increasing shareholder returns, optimizing the company’s corporate governance structure, and establishing a long-term incentive and restraint mechanism for the management team’s shareholding, Midea pointed out.

Midea also disclosed its 2025 earnings report yesterday. The firm’s net profit widened 14 percent to CNY43.9 billion last year from 2024, and its revenue rose 12 percent to CNY458.5 billion (USD66.4 billion). Both figures hit new record-highs.

Midea will distribute dividends of CNY38 per 10 shares, it said yesterday. Combined with the interim dividend of CNY5 (72 US cents) per 10 shares paid earlier, the company will pay a total CNY32.4 billion in dividends for 2025, equal to 74 percent of its annual net profit.

Editors: Dou Shicong, Futura Costaglione