Financial Associated Press, October 18 (Reporter Teng Fei) Recently, the China Securities Regulatory Commission has solicited opinions on the new repurchase regulations, and the repurchase rules of listed companies have been further optimized. Or for equity incentives, or employee stock ownership plans.
According to statistics from Star Mine, a total of 37 listed companies have disclosed repurchase announcements in the past month. Among them, after the new regulations were released on the 14th, 14 companies put forward plans or proposals for repurchase. It is worth mentioning that many of the listed companies that plan to implement the repurchase this time will directly use it for share cancellation. From the perspective of industry attributes, listed companies in the fields of biomedicine and computer communications that have been active in the secondary market recently. More enthusiastic about repurchases.
Repurchase and cancellation
“The new regulations reduce the triggering conditions and implementation conditions for listed companies’ repurchase, and optimize the market-based pricing mechanism.” An asset manager of Shandong Local Development Group said in an interview with a reporter from the Financial Associated Press. The effect of improving market value is obvious, especially in the form of share repurchase and cancellation, which is the most direct way to return shareholders.”
For example, Joincare (600380) announced on the 17th that the company plans to repurchase its own shares at a price of not more than 16 yuan per share. The repurchase fund range is 300-600 million yuan, which will be directly used to reduce the company’s registered capital, accounting for the company’s total The share capital ratio is 0.97-1.95%. At the same time, the company’s directors, supervisors and executives and the actual controller also promised not to reduce their holdings in the next 6 months.
Coincidentally, Mercury Home Textiles (603365) also throws out a write-off repurchase plan. The company plans to use its own funds of 30-60 million yuan to repurchase at a price not exceeding 19.38 yuan per share, and the repurchased shares will be fully repurchased according to law. Write off and reduce the registered capital of the company.
According to the upper limit of the repurchase amount of 60 million yuan (inclusive) and the upper limit of the repurchase price of 19.38 yuan per share, the number of repurchases is 3.1 million shares, accounting for 1.16% of the current company’s total share capital.
Kaipu Bio (300639) also began to implement the repurchase and cancellation plan in the middle of this month. The total repurchase fund is not less than 50 million yuan and not more than 100 million yuan, and the repurchase price does not exceed 25.00 yuan per share (inclusive). It accounts for 0.46% to 0.92% of the company’s current total issued share capital.
In addition, according to the reporter’s review, since the beginning of this year, many leading listed companies such as Sinopec, Midea Group, Livzon Group, Kangyuan Pharmaceutical, Hikvision, Huatai Co., Ltd. have also made it clear that the purpose of repurchasing shares is to cancel and reduce registration. Capital, Gree Electric has also changed the purpose of repurchasing shares, canceling a total of 101 million shares, and the corresponding repurchase amount is about 6 billion yuan, accounting for 1.7% of the total share capital.
Compared with the use of repurchase for equity incentives, employee stock ownership plans, etc., “repurchase + cancellation” does not have the trouble of balancing the interests of shareholders and employees. Real money will compress the share capital, and the cancellation of shares will directly give back to all shareholders, and also Make the “repurchase” more sincere.
Some analysts said that the listed company will cancel the repurchased shares, and the company’s total share capital will decrease. Under the circumstance that the current profit is fixed, the earnings per share will increase accordingly, and the gold content of the listed company will also be increased virtually, and the company will have more investment value. .
Repurchase ratio rises
According to a reporter from the Financial Associated Press, the purpose of the recently repurchased companies is still to focus on equity incentives or employee stock ownership plans, but the proportion of repurchased shares in the total share capital has risen compared with the past, and some companies have shortened the repurchase period. Intent to complete the share repurchase quickly.
The most eye-catching recently is China Textile City (600790), the company has put out a repurchase plan of 410 million yuan to 806 million yuan, and the repurchase price is not more than 5.50 yuan/share (inclusive), not less than 2.80 yuan/ According to the repurchase limit, the repurchased shares account for 10% of the company’s total share capital.
Great Wall Motor (601633) is the most “frank” listed company in the recent repurchase. The company has put forward a plan with a repurchase capital cap of 1.8 billion yuan. Based on the repurchase cap, the planned repurchase amount is 40 million shares, accounting for 40 million shares of the company. The total share capital ratio is 0.44%. Salt Lake shares (000792), SF Holding (002352), and Hikvision (002415) also have a repurchase limit of more than 1 billion yuan in the past month.
It is worth mentioning that among the companies that proposed repurchase plans in the past month, companies such as Xingyuan Materials, Weir Shares, and Chengtou Holdings have compressed the repurchase period to 3 months, compared to the common 6 months in the market. , 12-month repurchase period, the repurchase time is greatly shortened.
Repurchase is also a double-edged sword. In recent years, many listed companies have received regulatory attention due to repurchase, which is directed at the transfer of interests and the reduction of shareholders’ holdings. If I miss you (002582) once deviated from its own value, it threw out a huge repurchase plan of 1.469 billion to 2.938 billion yuan, which was very controversial, and cooperated with its reduction. Public punishment was imposed.
Supor (002032) also repurchased at a maximum of 67 yuan, cooperated with 1 yuan of equity incentives, and set a very low performance appraisal threshold to cause controversy. At that time, the Shenzhen Stock Exchange also urgently sent a letter to ask whether the company had benefit transmission.
A person close to the regulator told reporters: “Repurchase is used for equity incentives, employee stock ownership, etc., and the grant price is generally lower than the market transaction price. On the surface, it is paid by the listed company, but in fact, all shareholders pay, which is a balance. The issue of the interests of shareholders and employees, to avoid the phenomenon of generous shareholders benefiting employees, and investors should also guard against the company’s fraudulent repurchase.”
The repurchase amount in the two cities exceeds 100 billion this year
On October 14, the China Securities Regulatory Commission issued a notice on its official website. In order to support and encourage listed companies to implement share repurchase in accordance with the law, directors, supervisors and senior executives to increase their shares in accordance with the law, actively safeguard the company’s investment value and the rights and interests of small and medium shareholders, and better adapt to the actual market and company needs, the CSRC. The meeting intends to revise the Rules for Share Repurchase of Listed Companies and the Rules for the Management of the Shares of the Company Held by Directors, Supervisors and Senior Management of Listed Companies and Their Changes, and solicit opinions from the public.
This revision mainly optimizes four aspects: repurchase conditions, repurchase restrictions, repurchase increase window period, and share issuance behavior. Company Self-Regulation Supervision Guidelines No. 7 – Share Repurchase and “Shanghai Stock Exchange Self-Regulation Supervision Guidelines for Listed Companies No. 8 – Share Change Management”, and public opinions are solicited. The Shenzhen Stock Exchange revised the “Guidelines for the Self-discipline and Supervision of Listed Companies No. 9 – Repurchase of Shares” and “Guidelines for the Self-discipline and Supervision of Listed Companies No. 10 – Management of Changes in Shares”, and solicited opinions from the public.
According to data from the Shanghai Stock Exchange, since 2019, more than 500 listed companies in the Shanghai Stock Exchange have implemented share repurchase, with the actual repurchase amount exceeding 170 billion yuan. 234 listed companies in the city have implemented share repurchase, with the actual repurchase amount reaching 58.7 billion yuan. Among them, 14 listed companies actually repurchased more than 1 billion yuan.
According to data from the Shenzhen Stock Exchange, since 2019, about 700 companies in Shenzhen have repurchased a total of nearly 190 billion yuan, and about 1,200 companies have increased their holdings by directors, supervisors, and senior management to a total of about 22 billion yuan. Among them, 275 companies have repurchased a total of 45 billion yuan this year, and 216 companies have increased their holdings by a total of 3.2 billion yuan. The number has continued to increase recently.
(Editor: Cao Jingchen)