GigaDevice Plans RMB 1-2 Billion Share Buyback for Cancellation, Chairman Proposes Increase

GigaDevice (603986. SH) held a board meeting on July 31, 2026, and unanimously approved a share buyback proposal. The company plans to repurchase A-shares through centralized bidding using its own or self-raised funds, with a total amount of not less than RMB 1 billion and not more than RMB 2 billion, at a price not exceeding RMB 750 per share. The repurchased shares will be fully cancelled to reduce registered capital, and the buyback period is six months from the date of shareholder meeting approval. The plan still requires approval from the shareholders' meeting.

Earlier, on July 29, Chairman Zhu Yiming proposed the share buyback and plans to increase his holdings in the company from December 13, 2026 to July 29, 2027, with an increase amount of not less than RMB 1 billion. As of March 31, 2026, GigaDevice's total assets were RMB 27.77 billion, net assets attributable to shareholders were RMB 25.27 billion, and total cash was RMB 14.69 billion. Based on these figures, the maximum buyback of RMB 2 billion accounts for approximately 7.2% of total assets, 7.91% of net assets, and 13.61% of total cash. The company stated that this buyback will not have a material impact on its operations, profitability, financial condition, R&D, debt repayment ability, or future development.

In its DRAM business, GigaDevice's DRAM products have seen price increases for several consecutive quarters, with rapid price rises in the second half of 2025 driven by AI investment. In niche DRAM, due to major industry players shifting capacity to mainstream server DRAM, supply shortages emerged, leading to rapid price increases in the second half of 2025 as well. As of the end of the second quarter of 2026, niche DRAM prices remain in an upward trend. The company said that its self-developed LPDDR4 new products are about to enter mass production in the second half of 2026, while development of the next-generation LPDDR5 small-capacity products is progressing, basically maintaining a pace of launching one new series per year. The company plans to gradually enter new application areas such as automotive, in addition to the already expanded TV, industrial, and communications markets.

Separately, Zhongchuang Zhiling announced a plan to repurchase A-shares through centralized bidding, with a total amount of not less than RMB 300 million and not more than RMB 400 million, at a price not exceeding RMB 21 per share. Of the repurchased shares, 50% will be cancelled to reduce registered capital, and 50% will be used for future equity incentives or employee stock ownership plans. The buyback period is 12 months from the date of shareholder meeting approval.