Can the company's shares held by the company distribute profits?

Legal analysis: According to the relevant regulations issued by the company, the shares held by the company are not allowed to distribute profits. Under special circumstances, a company can hold its own shares, but even if it holds shares, it cannot distribute profits.

Legal basis: Article 142 of the Company Law of People's Republic of China (PRC), a company may not purchase its shares. However, except for one of the following circumstances:

(1) Reduce the registered capital of the company.

(2) Merging with other companies holding shares of the Company;

(3) Using shares for employee stock ownership plan or equity incentive;

(4) Shareholders request the company to purchase their shares because they disagree with the resolution of merger or division made by the shareholders' meeting;

(5) Using shares for the conversion of corporate bonds convertible into shares by listed companies.

(6) The need for listed companies to safeguard their own values and shareholders' rights and interests.