On the evening of February 10, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) announced that the proposal of share repurchase plan was adopted by the general meeting of shareholders. According to the plan, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) plans to buy back 1 billion yuan in the next 12 months, with a repurchase price of no more than 400 yuan / share, “based on the confidence in the company’s future development prospects and recognition of its internal value”.
Since the beginning of 2022, the company’s share price has fallen endlessly, with a cumulative decline of 19% in 23 trading days. Previously, there were market rumors that the company’s performance was not up to standard and a large number of salespeople left, but it was soon denied by the company. Subsequently, the company offered an employee stock ownership plan and set a compound growth assessment target of no less than 20% for the net profit in the next three years.
Last August, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) also implemented a repurchase with an amount of 1 billion. At that time, its share price plunged 45% in just two months.
“Medical equipment Mao” tried to buy back, but the new and old lifting shareholders continued to reduce their holdings. Everunion, the second largest circulating shareholder of the company, reduced its holdings and cashed out about 2 billion yuan from May to September last year, and plans to continue cashing out more than 1 billion yuan. The fifth and sixth largest shareholders who had just been lifted in October last year, as well as the seventh and eighth largest shareholders who had previously lifted the ban, also reduced their holdings one after another. The four shareholders reduced their holdings and cashed out more than 4.5 billion yuan in recent three months.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) fell 19% at the beginning of the year
it is proposed to repurchase 1 billion at no more than 400 yuan per share
On January 13, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) said that based on the recognition of the company’s future development prospects and internal value, in order to safeguard the interests of investors and enhance investor confidence, combined with the company’s operation, main business development prospects, financial status and future profitability and other factors, the company plans to use its own funds to repurchase some shares of the company in the form of centralized bidding transaction, The repurchased shares will be cancelled and the registered capital will be reduced according to law.
On the evening of February 10, the company announced that the above repurchase plan was approved by the general meeting of shareholders.
Specifically, the repurchase amount is 1 billion yuan, the repurchase price is no more than 400 yuan / share, and the repurchase implementation period is no more than 12 months from the date when the shareholders’ meeting deliberates and approves the share repurchase plan, that is, the repurchase can begin on February 11.
Since 2022, it has been difficult for “medical equipment Mao” Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) to survive against the background of the collective decline of big white horses in the whole pharmaceutical sector. On the first trading day of the year on January 4, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) plummeted by 10%, and continued to decline by 7% in the following week. After a short rebound, it began to close six consecutive negative at the end of January, with a cumulative decline of 19% in the beginning of the year.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) the sharp decline in the beginning of the year has something to do with a market rumor. Previously, it was reported that the company’s performance did not meet expectations, the performance completion of many branches was less than 50%, and the company’s salespeople left in large quantities.
In response to the media, the staff of the Securities Department said that the company had not disclosed the annual report of 2021, so it was unable to disclose information related to performance. However, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) has not released any news affecting the performance trend, nor has there been any event that the performance failed to meet expectations and the salesperson resigned. The staff member also said that the resignation of salespeople is a normal phenomenon in the operation of the company, while the abnormal events that a large number of salespeople leave their jobs and have a great impact on the company have not occurred.
Subsequently, on the evening of January 19, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) released an employee stock ownership plan. The employee purchase price was as low as 50 yuan / share, and gave an assessment index of 20% performance growth in the next three years, that is, the growth rate of net profit attributable to parent company from 2022 to 2024 was not less than 20%, 44% and 73% compared with that in 2021.
the company’s rapid repurchase which has plummeted by 45%
the second largest circulating shareholder cashed out 2 billion
This is not the first repurchase of Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) . At the end of August more than five months ago, the company quickly established its position in less than a week and completed a repurchase of 1 billion yuan.
Last July, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) exposed the “storm of centralized procurement”. Although the company responded that the current centralized procurement promoted by the national medical insurance administration is mainly aimed at the field of drugs and high-value consumables, and the products of the company’s three business areas do not involve drugs and high-value consumables, so it has little impact on the company’s business. However, since its share price reached a high of 502 yuan in early July, it has still fallen rapidly. On August 20, the decline reached 17%. It once plunged 45% in just over a month, and the decline in the whole third quarter reached 40%.
On August 24, 2021, the company immediately held a meeting of the board of directors, deliberated and adopted the proposal on share repurchase scheme of the company, “based on the confidence in the future development prospect and recognition of the internal value of the company”, and agreed that the company would use its own funds to repurchase part of the public shares of the company in the form of centralized bidding transaction for the implementation of equity incentive plan or employee stock ownership plan.
Less than a week later, the company announced that as of September 1, 2021, the company had repurchased 3.0487 million shares of the company through the special securities account for share repurchase by means of centralized bidding transaction, accounting for 0.2508% of the total share capital of the company, and the maximum transaction price was 335. Yuan / share, the lowest transaction price is 316.18 yuan / share, and the total amount paid is 1 billion yuan.
However, while the company strives to increase its holdings and maintain its share price, the shareholders of the company are reducing their holdings at a large scale. After the announcement of share repurchase by the largest shareholder of the company at the beginning of last year, the total share capital of the company had been reduced by 4.49 million shares, excluding the announcement of share repurchase by the company’s largest shareholder at the beginning of March, which accounted for 3.7% of the total share capital of the company. The reduction price range of ever union is 448 yuan to 490 yuan, that is to say, at least 2 billion yuan has been cashed out.
Everunion also plans to continue to reduce its holdings. It plans to reduce its holdings of no more than 3526400 shares of the company by means of centralized bidding or / and block trading from October 13, 2021 to April 12, 2022 (accounting for about 0.29% of the total share capital of the company after excluding the repurchase of shares in the special account at that time). Based on the stock price at the time of announcement, the cash available for the above reduction is about 1.355 billion yuan.
the market value of 250 billion has just been lifted
the two major shareholders immediately cashed out 4 billion
Even union is not fighting alone. More than half a month after it announced its second reduction, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) has been listed for three years, and a large number of original shares have been lifted after the sales restriction period, and several shareholders immediately reduced their holdings after the lifting of the restriction.
On October 18, 2021, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) issued a suggestive announcement on the listing and circulation of shares issued before the initial public offering. The total number of shares lifted was up to 717 million. Excluding the Pledged Shares, the actual tradable shares were 662 million, accounting for 54.49% of the total share capital. According to the closing price of 378.03 yuan / share on that day, the total market value of the lifted shares is as high as 250.432 billion. So far, the total share capital of Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) is 1.216 billion shares, realizing full circulation.
As soon as the ban was lifted, the two major shareholders of Shenzhen Ruilong and Shenzhen Ruifu couldn’t wait to start reducing their holdings.
According to the third quarterly report of Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) 2021, Shenzhen Ruilong and Shenzhen Ruifu ranked the fifth and sixth largest shareholders of the company respectively. As of the end of the third quarter of last year, the above two shareholders held 47.3365 million shares and 45.1972 million shares respectively. However, on January 12, the number of shares held by the two shareholders decreased to 41.1417 million shares and 38.9532 million shares respectively, reducing 6.1948 million shares and 6.244 million shares respectively. Even based on the stock price low of the above reduction range, the cash out amount of the two shareholders is at least 2 billion yuan, totaling more than 4 billion yuan.
In addition to the above two newly lifted shareholders, Shenzhen Ruijia and Shenzhen Ruixiang, the seventh and eighth largest shareholders previously lifted, also reduced their holdings of hundreds of thousands to more than one million shares respectively, with a total cash out amount of more than 500 million yuan.
From the stock price high of 502 yuan in early July 2021 to the closing of 309 yuan on February 10, the “medical equipment Mao” has fallen by 38.44% in seven months, and the market value of more than 230 billion has disappeared.
