Economic Observer Network reporter Li HuaqingOn the evening of January 24, Gree Electric (000651.SZ) announced its shareholder return plan for the next three years (2022-2024).
Gree Electric said that from 2022 to 2024, the company plans to distribute profits twice a year, namely annual profit distribution and mid-term profit distribution; on the premise that the cash flow meets normal operations and long-term development, the company plans to distribute profits annually from 2022 to 2024. The total accumulated cash dividends shall not be less than 50% of the net profit of the year.
In the next three years, no less than half of the net profit will be distributed in cash, which can be regarded as a large dividend. In the past three years, Gree Electric’s annual net profit has exceeded 22 billion yuan. In the stock bar of Gree Electric, most of the shareholders are happy to see the success of the shareholder return plan. Some people commented that Gree Electric “is a company of conscience and can look forward to it for a long time”. Others believe that this move could boost Gree Electric’s share price.
On January 25, as of press time, the share price of Gree Electric was 39.62 yuan per share, a slight increase of 2%, and the market value was 234.3 billion yuan.
Although Gree Electric said that the company formulated this shareholder return plan to establish a scientific, sustainable and stable shareholder return mechanism, protect the legitimate rights and interests of shareholders, and promote the rational development of the capital market, in the eyes of many people, Gree Electric announced shareholder returns at this time. Planning is related to market value management.
Since the outbreak of the new crown epidemic, the share price of Gree Electric has been weak, and has fallen from the highest price of 70.56 yuan per share in late January 2020 to the current less than 40 yuan per share. Since the second half of 2021, the share price has been falling all the way. Although the share price of Midea Group has also fluctuated after the outbreak, from the highest price of 108 yuan per share in late February 2021 to the current 76.83 yuan per share, the market value of Midea Group has remained at nearly 540 billion yuan. Appliances more than double the market value.
In the eyes of industry insiders, Gree Electric has thrown out a considerable dividend plan at this time, which is also related to the election of members of the Gree Electric Board of Directors.
“This year is the election year for the board of directors of Gree Electric. In January 2022, the tenure of the 11th board of directors of Gree Electric will expire. This move (referring to the shareholder return plan launched by Gree Electric for the next three years) can be regarded as Dong Mingzhu’s bid for re-election. The foreshadowing made.” said Liu Buchen, an analyst in the home appliance industry. On the evening of January 24, Gree Electric also announced that it will hold the first extraordinary general meeting of shareholders in 2022 on February 28. In addition to reviewing the shareholder return plan for the next three years, the general meeting will elect the twelfth shareholder meeting. Member of the board. In Liu Buchen’s view, Dong Mingzhu is very likely to be elected as the chairman of the new board of directors of Gree Electric.
It is worth pointing out that the shareholder return plan proposed by Gree Electric for the next three years may not necessarily come true. Gree Electric said that if it is necessary to adjust the return plan based on the actual situation, the company can propose an adjustment plan without violating the profit distribution policy determined by the company’s articles of association. The company’s board of directors is responsible for the interpretation of this plan, and it needs to be reviewed and approved by the company’s general meeting to take effect.
A lawyer from Shanghai Xingu Law Firm told the Economic Observer.com reporter that the shareholder return plan announced by the listed company is legally effective. Judging from the content of Gree Electric’s announcement, it is an announcement that takes effect with conditions, and the conditions attached are that shareholders Approved by the General Assembly. It is not contradictory for the announcement to have conditions to take effect and the content of the announcement has legal effect. If the document takes effect, it must be implemented in accordance with the rules set by the announcement. Dividend distribution, especially in future years, should be combined with the operating conditions of the current year. The dividend distribution plan usually needs to clarify the three issues of calculation base, distribution time and distribution ratio.
Under the call of the China Securities Regulatory Commission to encourage listed companies to implement cash dividends, it is not uncommon for listed companies to propose dividend plans, and investors can supervise the dividend commitments made by listed companies.Return to Sohu, see more
Editor:
Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.