Shijiazhuang Tonhe Electronics Technologies Co Ltd

Recently, multiple listed companies have announced they have obtained special loans for share buybacks, aimed at repurchasing shares to boost investor confidence, with many exceeding 100 million yuan. Chenghe Technology received a loan commitment letter from the Guangzhou Baiyun Sub-branch of Bank of China for up to 126 million yuan, with a term of no more than three years. Yonghe Shares obtained a loan facility of up to 270 million yuan from the Quzhou Branch of Industrial and Commercial Bank of China, with a three-year term. Shiyun Circuit received a loan commitment letter from the Jiangmen City Branch of China Construction Bank for 270 million yuan, with an interest rate as low as 1.8 percent and a term of one to three years. The cooperating banks are mainly large state-owned banks, but also include some joint-stock banks. For example, Tonghe Technology obtained credit support of up to 63 million yuan from the Shijiazhuang Branch of Industrial Bank. Banking sources say that special loans for share buybacks help stabilize stock prices. The People's Bank of China provides re-lending support at 100 percent of the loan principal, but attention must be paid to risks such as fund misappropriation, share price fluctuations, and customer credit.

Tonhe Technology announced that the company plans to use 35 million to 70 million yuan to buy back A-shares, with a repurchase price not exceeding 45 yuan per share. The repurchased shares will be used for employee stock ownership plans or equity incentive plans. The company has obtained a loan commitment letter from the Shijiazhuang branch of Industrial Bank for up to 63 million yuan to support this buyback. The repurchase will be conducted through centralized bidding, with funding sources including own or self-raised funds as well as special stock buyback loan funds.