Cover reporter Zhu Ning
On the evening of January 24, Gree Electric disclosed its shareholder return plan for the next three years. From 2022 to 2024, the company’s annual cash dividend will not be less than 50% of the year’s net profit.
Gree generous dividends
On the evening of January 24, Gree Electric (000651, SZ) announced that in order to establish a scientific, sustainable and stable shareholder return mechanism and effectively protect the legitimate rights and interests of shareholders, the company comprehensively considered factors such as corporate profitability, business development planning, and shareholder returns. The “Shareholder Return Plan for the Next Three Years (2022-2024)” was formulated.
According to the plan, Gree Electric Appliances plans to distribute profits twice a year from 2022 to 2024, namely annual profit distribution and mid-term profit distribution; The total accumulated cash dividends in 2024 shall not be less than 50% of the net profit of the year.
The reporter noticed that Gree Electric had previously released two shareholder return plans for the next three years. One for three years from 2012 to 2014, and the other for 2016 to 2018.
From the perspective of specific content, for the distribution method, the two content expressions are exactly the same. Gree Electric said that the company can distribute profits in the form of cash, stocks or a combination of cash and stocks, and can carry out medium-term cash dividends.
As for the minimum dividend distribution ratio of the company’s profit distribution, the previous two planning documents mentioned that on the premise that the company’s cash flow meets the company’s normal operation and long-term development, the company’s cumulative distribution of profits in cash in the last three years should not be less than the last three years. 30% of the realized annual average distributable profit.
The data shows that during the six-year period from 2012 to 2018, except for 2017, which did not implement dividends, the other annual dividends reached 3.008 billion yuan, 4.512 billion yuan, 9.024 billion yuan, 10.828 billion yuan (2016) and 12.633 billion yuan respectively. (2018). The ratio of dividends to net profit is as high as 72% and as low as 40%. In 2020, it will distribute 22.674 billion yuan in dividends, and the dividend payout rate is as high as 102.25%. It ranks first in the dividend ratio of the same industry.
Repeated buybacks are difficult to prevent the stock price from falling
In addition to generous dividends, Gree Electric’s share repurchase is also worthy of attention. In April 2020, Gree Electric launched a repurchase plan for the first time in its history, with a repurchase amount of 3 billion to 6 billion yuan; in October 2020, the second phase of repurchase was launched, and the repurchase amount was also 3 billion to 6 billion yuan. . The third phase of repurchase will be launched in May 2021, with a repurchase scale of 7.5 billion to 15 billion yuan. Judging from the final results, the cumulative repurchase amount in the three phases is as high as 27 billion yuan.
However, the nearly 30 billion buybacks are not enough to offset the decline in share prices. Since the high of 66.79 yuan per share in early December 2020, Gree Electric’s share price has continued to fall. As of the recent lowest point (November 30, 2021), Gree Electric’s share price was reported at 34.56 yuan per share, a 48% correction from the high point, and the market value evaporated by more than 190 billion yuan.
Beginning in early December 2021, Gree Electric’s share price began to fluctuate upward; on January 25, as of press time, Gree Electric reported an increase of 2.47%, with the latest price of 39.81 yuan per share.Return to Sohu, see more
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