march 8, 360 Security Technology Inc(601360) ( 360 Security Technology Inc(601360) ) released the implementation arrangement of the repurchase plan, and planned to repurchase the company’s shares by means of centralized bidding within the next three trading days, with the repurchase amount not less than 90 million yuan and not more than 120 million yuan
It is worth mentioning that the above announcement is not within the scope of compulsory disclosure of the progress of share repurchase, which belongs to voluntary disclosure. While combing the relevant announcements of 360 Security Technology Inc(601360) previous repurchase, there has been no similar optional action. The company said that the repurchase plan in the next three days is based on confidence in future development and recognition of the company’s value, aiming to improve investor confidence.
Since the repurchase plan was approved at the general meeting of shareholders in October last year, 360 Security Technology Inc(601360) started the first repurchase in early November last year, and repurchased 616893 million shares in total within more than four months at a cost of 737 million yuan, with an average monthly repurchase amount of about 184 million yuan. In the follow-up repurchase arrangement released today, the repurchase task of 90-120 million yuan will be completed in only three days, accounting for 49% – 65% of the previous monthly average repurchase amount, which significantly accelerated the pace of repurchase.
According to the repurchase report released in October last year, 360 Security Technology Inc(601360) this round of repurchase shares are all used in the employee stock ownership plan to partially replace the existing employee bonus. The total capital of the planned repurchase is 1-1.5 billion yuan, and the repurchase price is no more than 18.21 yuan / share. If Dingge implements repurchase in the next three days, the company’s cumulative repurchase amount will reach 857 million yuan, completing 86% of the lower limit of this round of repurchase plan.
secondary market, 360 Security Technology Inc(601360) although steadily promoting the repurchase plan, the stock price performance is not ideal, with a decline of 13.68% in the past three months, which may be the reason for the company to accelerate the repurchase pace this time
At the beginning of the repurchase plan, the 360 Security Technology Inc(601360) share price hovered around 12 yuan / share. From November to December 2021, the company completed the repurchase tasks of RMB 237 million and RMB 300 million respectively, and the repurchase price increased steadily, ranging from RMB 11.97/share to RMB 12.93/share. In late January 2022, 360 Security Technology Inc(601360) share price entered a unilateral downward mode, with a short-term decline of nearly 20%, reaching a stage low of 10.3 yuan / share. In that month, the company did not buy back one share, and the pace of repurchase was suspended; After the share price entered the stable platform in February, the company restarted the repurchase again, which cost 200 million yuan that month, and the repurchase price hit a new low of 10.51 yuan / share.
In terms of performance, after the net profit fell by more than 50% in 2020, the profitability of 360 Security Technology Inc(601360) 2021 still did not improve and continued to decline. According to the performance forecast, the company expects the operating revenue of 2021 to be about 10.6-11.1 billion yuan, a slight decrease of 4.43% – 8.74% compared with last year; The net profit was 823 million yuan to 991 million yuan, with a year-on-year decrease of 65.98% – 71.75%. For the reasons for the decline in performance, the company said that it was mainly due to the development of new business territory and the reserve of digital security technology, resulting in a year-on-year increase of 1.2 billion yuan to 1.6 billion yuan in R & D expenses and sales expenses; At the same time, due to the national policy regulation of the Internet industry and the slowdown in the growth of the industry where Internet advertisers are located, the company’s Internet commercialization business revenue decreased by 1.1 billion yuan to 1.3 billion yuan year-on-year, driving down the profitability of the sector.
in addition to the existing sector business, 360 Security Technology Inc(601360) with internet gene is working in the direction of intelligent Internet connected vehicles and trying to form industrial synergy. In October last year, the company announced that it planned to invest 2.9 billion yuan in Nezha automobile with its own funds, and will eventually obtain 16.59% equity and become its second largest shareholder. In the recent survey of receiving investors, 360 Security Technology Inc(601360) said that the ultimate purpose of investing in Nezha is to provide security capabilities for all smart connected vehicles and hope that all new generation smart connected vehicles can use 360 Security Technology Inc(601360) products
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