On March 13, Jiangsu Hengrui Medicine Co.Ltd(600276) ( Jiangsu Hengrui Medicine Co.Ltd(600276) ) announced that it planned to repurchase shares with 600 million yuan to 1.2 billion yuan, and the source of share repurchase funds was the company’s own funds; The company’s shares are repurchased from the secondary market by means of centralized bidding transaction.
“Based on the confidence and fundamental judgment of the company’s future development prospects, in order to safeguard the interests of the company and the majority of investors, improve the long-term incentive mechanism of the company’s employees and fully mobilize the enthusiasm of employees.” Jiangsu Hengrui Medicine Co.Ltd(600276) said that the shares repurchased this time will be used for employee stock ownership plan or equity incentive.
proposed share repurchase of up to 12 billion yuan
The announcement disclosed that Jiangsu Hengrui Medicine Co.Ltd(600276) this repurchase price does not exceed 60.22 yuan / share (inclusive), and the repurchase price of the entity is determined by the board of directors of the company during the repurchase period, taking into account the stock price of the company’s secondary market, the company’s financial status and operating conditions.
Based on the calculation of the maximum repurchase fund of 1.2 billion yuan and the maximum repurchase price of 60.22 yuan / share, Jiangsu Hengrui Medicine Co.Ltd(600276) it is estimated that the number of shares repurchased will be about 199269 million shares, accounting for about 0.31% of the current total share capital of the company.
It is reported that the share repurchase fund comes from Jiangsu Hengrui Medicine Co.Ltd(600276) own funds. The share repurchase will not have a significant adverse impact on the company’s continuous operation and future development, and will not have a significant adverse impact on the company’s profitability, debt performance ability and R & D ability.
As of September 30, 2021 (Unaudited), Jiangsu Hengrui Medicine Co.Ltd(600276) total assets are 38.950 billion yuan, net assets are 34.237 billion yuan and current assets are 30.358 billion yuan.
It should be noted that as of the date when the board of directors considered and approved the repurchase plan, the controlling shareholders, actual controllers, directors, supervisors and senior managers of the company had no plans to reduce their shares in the company in the next three months and six months.
Referring to the purpose of the share repurchase, Jiangsu Hengrui Medicine Co.Ltd(600276) said that the repurchase is based on the confidence and fundamental judgment of the company’s future development prospects. The share repurchase is used to implement the equity employee stock ownership plan or equity incentive, which is conducive to improving the long-term incentive mechanism of the company’s employees.
companies joined the repurchase army
In the context of market shocks, a number of companies recently announced repurchase plans, boosting market confidence.
On March 10, Midea Group Co.Ltd(000333) announced that it plans to continue to repurchase the company’s shares with its own funds, with a repurchase amount of 2.5 billion yuan to 5 billion yuan and a repurchase price of no more than 70 yuan / share, so as to implement the company’s equity incentive plan or employee stock ownership plan.
On March 9, S.F.Holding Co.Ltd(002352) announced that as of March 9, 2022, the company had repurchased 103266 million shares of the company through centralized bidding through the special securities account for share repurchase. The repurchase fund is about 565 million yuan (excluding transaction costs), the number of shares repurchased accounts for 0.21% of the company’s total share capital, and the average transaction price is 54.72 yuan / share. For purposes, S.F.Holding Co.Ltd(002352) the shares also repurchased this time will be used to implement employee incentive.
On March 8, Zte Corporation(000063) announced that the company planned to request the extraordinary general meeting of shareholders to authorize the board of directors of the company to make decisions according to law and implement the company’s repurchase of a shares. The number of shares to be repurchased will be determined by the board of directors authorized by the extraordinary general meeting in accordance with relevant laws and regulations within the authorized amount of 2% of the issued A-share capital of the company on the date of deliberation and adoption of this proposal by the extraordinary general meeting.
In addition, a number of listed pharmaceutical companies have also announced repurchase plans or progress. On March 7, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) announced that all the 3.2499 million shares it had bought back at a cost of 1 billion yuan had been cancelled. In the past six months, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) launched two rounds of share repurchase schemes on August 26, 2021 and January 13, 2022, respectively, for ESOP and share cancellation.
On March 1, Joincare Pharmaceutical Group Industry Co.Ltd(600380) announced that as of February 28, 2022, the company had repurchased about 133688 million shares through centralized bidding, accounting for 0.7% of the total share capital of the company, and the total amount paid was about 161 million yuan (including handling fees). In February 2022, the company repurchased about 7.7971 million shares, and the total amount paid was 948035 million yuan (including handling fees).
The repurchase measures of listed companies have also been favored by securities analysts. Taking Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) as an example, China Industrial Securities Co.Ltd(601377) said that Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) in order to safeguard the interests of investors and enhance investors’ confidence, combined with its own business situation, development prospect of its main business, financial status and future profitability and other factors, issued two buybacks and equity incentives, highlighting its confidence in its future development prospects and recognition of its intrinsic value.
