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.