Bluebird Fire Protection makes a major share buyback, and the company's product sales prices are expected to rebound?

The Daily Economic News reporter: Zhang Guangri The Daily Economic News editor: Wu Yongjiu

Recently, Qingniao Fire Protection has announced a share repurchase plan, proposing to buy back no less than 2.5% of the company’s total share capital. However, from 2024 to the third quarter of 2025, the company’s performance has not been satisfactory. Nonetheless, in its 2025 semi-annual report, the company stated that the overall product sales prices are expected to rebound. So, more than half a year has passed, have the company’s product sales prices already rebounded? In response, a reporter from The Daily Economic News (hereinafter referred to as “the Daily Economic News reporter”) conducted an investigation.

Repurchase share quantity not less than 2.5% of the company’s total share capital

On the evening of March 19, 2026, Qingniao Fire Protection issued an announcement regarding its first share repurchase. The announcement shows that on March 19, 2026, the company first repurchased shares through a dedicated securities account using centralized bidding transactions. The number of shares repurchased was 1.0517 million, accounting for approximately 0.12% of the company’s current total share capital. The total payment was about RMB 11.8124 million (excluding transaction fees).

It is noteworthy that Qingniao Fire Protection plans to repurchase a relatively large scale of shares. The company’s repurchase report indicates that it intends to use its own funds and raised funds (including special loan funds for stock repurchase, etc.) to buy back shares via centralized bidding. The number of shares to be repurchased will be no less than 2.5% and no more than 5% of the total share capital. The company will, at an appropriate time in the future, use the repurchased shares for employee stock ownership plans or equity incentives. This repurchase report was issued on March 18, 2026—meaning that on the first trading day after the report’s release, Qingniao Fire Protection already carried out its initial repurchase.

Regarding the maximum price for the repurchase, Qingniao Fire Protection’s current stock price still has considerable room for growth. As of March 20, 2026, the stock closed at RMB 11.49 per share, with a total market value of approximately RMB 10.11 billion. According to the company’s announced repurchase plan, the upper limit for the repurchase price is set at RMB 16 per share. Based on the latest closing price, to reach this upper limit, the stock would need to increase by about 40%.

In 2025, Qingniao Fire Protection also repurchased and canceled more than 12 million restricted shares. An announcement in May 2025 regarding the completion of the repurchase and cancellation of some restricted shares showed that the total restricted shares repurchased and canceled amounted to 12.2592 million, representing 1.66% of the company’s total share capital before the repurchase.

Overall product sales prices are expected to rebound

Qingniao Fire Protection focuses on the research, development, production, and sales of fire safety and IoT products. It has developed a comprehensive, professional, one-stop, multi-scenario technology and product system centered on the entire fire safety management process of “detect—escape—extinguish.” Its products are widely used in civil and commercial sectors, industrial/sector-specific fields, and overseas markets. It is one of the largest, most complete, and most technically advanced fire electronic safety product suppliers domestically.

Due to factors such as increased costs from equity incentives, higher financial expenses caused by foreign exchange gains and losses, and increased goodwill impairment losses, Qingniao Fire Protection’s performance declined significantly in 2024. According to Hexun, in 2024, the company achieved operating revenue of RMB 4.923 billion, a decrease of 0.98% year-over-year; net profit was RMB 353 million, down 46.42% year-over-year.

Influenced by domestic market price competition, in the first three quarters of 2025, Qingniao Fire Protection’s performance growth remained under pressure. It achieved operating revenue of RMB 3.359 billion, down 4.60% year-over-year; net profit was RMB 238 million, down 29.01% year-over-year.

In its 2025 semi-annual report, Qingniao Fire Protection stated: “Overall, the company’s business remains basically stable, and its business structure is shifting toward high-growth, high-margin industrial and overseas markets. Additionally, as the new national standard products are gradually phased in during the second half of the year, the company’s overall product sales prices are expected to rebound, further strengthening its long-term sustainable development capabilities.”

So, between the fourth quarter of 2025 and the first quarter of 2026, have the company’s overall product sales prices already rebounded? When the securities department of Qingniao Fire Protection was interviewed via email by the Daily Economic News, they responded: “We believe prices will fluctuate with the market. Let’s observe over a longer period. For specific information, please refer to the company’s annual report and first-quarter report.”

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The Daily Economic News