(Yicai Global) Oct. 14 -- Shares of Gree Electric Appliances jumped to a more than two-month high after the Chinese air con equipment giant said that it will buy back up to CNY6 billion (USD890.1 million) worth of its equity to buoy the stock that has slumped nearly 20 percent in value this year.

Gree Electric's share price SHE:000651] rose as much as 3.7 percent to CNY57.98 (USD8.60) in the morning session, the highest since late July. In late March, the equity price dropped to as low as CNY47.45.

The company will use its funds to purchase from CNY3 billion to CNY6 billion of its equity over the next 12 months, paying no more than CNY70 (USD10.40) apiece to offer incentives and employee stock options, the Zhuhai-based firm said in a statement yesterday. The maximum sum correlates to about 85.7 million shares, accounting for about 1.4 percent of the total.

The Covid-19 pandemic has hit Gree Electric along with other equipment manufacturers. In the first half, the company made about CNY69.5 billion (USD10.3 billion) in revenue, down 29 percent from a year ago. Its net profit slumped by 54 percent to about CNY6.4 billion.

Editor: Emmi Laine