On March 13, Jiangsu Hengrui Medicine Co.Ltd(600276) announced that it planned to repurchase the company’s shares by 600 million yuan to 1.2 billion yuan, and the repurchased shares would be used for employee stock ownership plan or equity incentive.
The China Securities Journal China Securities Taurus reporter noted that since March 10, listed companies have set off a “repurchase tide”, Midea Group Co.Ltd(000333) , Hengli Petrochemical Co.Ltd(600346) , Yonyou Network Technology Co.Ltd(600588) , Opple Lighting Co.Ltd(603515) , etc.
boost market confidence
Jiangsu Hengrui Medicine Co.Ltd(600276) announced that the total amount of funds to be used for repurchase by the company is not less than 600 million yuan and not more than 1.2 billion yuan. The specific total repurchase funds shall be subject to the actual repurchase funds at the expiration of the repurchase period.
Based on the calculation of the maximum repurchase fund of 1.2 billion yuan and the maximum repurchase price of 60.22 yuan / share, the number of shares repurchased is expected to be about 199269 million shares, accounting for about 0.31% of the company’s total share capital.
As of September 30, 2021, the company had total assets of 38.95 billion yuan, net assets attributable to shareholders of listed companies of 34.237 billion yuan and current assets of 30.358 billion yuan. The announcement disclosed that the repurchase funds came from the company’s own funds.
Jiangsu Hengrui Medicine Co.Ltd(600276) said that repurchasing shares is conducive to improving the long-term incentive mechanism of the company’s employees, fully mobilizing the enthusiasm of employees, enhancing investors’ confidence in the future development of the company, enhancing investors’ recognition of the company’s value and contributing to the sustainable development of the company.
According to the data of China Securities Taurus, on March 11, Jiangsu Hengrui Medicine Co.Ltd(600276) rose 4.01% to close at 37.62 yuan / share, with a market value of 240 billion yuan.
repurchase tide
Recently, many companies have thrown out repurchase plans.
On the evening of March 11, Yonyou Network Technology Co.Ltd(600588) announced that it planned to repurchase the company’s shares with 600 million yuan to 1 billion yuan, and the repurchase price would not exceed 32.4 yuan / share. The implementation of this share repurchase is conducive to maintaining the company’s value, further establishing and improving the company’s long-term incentive mechanism, effectively combining the interests of shareholders, the company and key employees, and boosting the implementation of the company’s strategic objectives.
On the evening of March 10, Midea Group Co.Ltd(000333) announced the plan of repurchasing some public shares. The company plans to repurchase shares at a price of 2.5 billion yuan to 5 billion yuan, with the repurchase price not exceeding 70 yuan / share. According to the calculation of the maximum repurchase amount of 5 billion yuan, the number of shares repurchased is expected to be no less than 714286 million shares, accounting for about 1.02% of the total issued share capital of the company. The implementation period of share repurchase is 12 months from the date when the board of directors deliberates and approves the share repurchase plan. The repurchased shares will be used to implement the company’s equity incentive plan and / or employee stock ownership plan.
On the evening of the same day, Opple Lighting Co.Ltd(603515) announced that it planned to use its own funds to repurchase the company’s shares at a price of no more than 23 yuan / share, and the total amount of share repurchase funds should not be less than 867343 million yuan and no more than 173 million yuan. The shares repurchased this time will be used as treasury shares for equity incentive and employee stock ownership plan.
On the evening of March 9, Hengli Petrochemical Co.Ltd(600346) announced that it would spend 1 billion yuan to 1.5 billion yuan to buy back the company’s shares through centralized bidding at a repurchase price of no more than 30 yuan / share. If the repurchase amount does not exceed 1.5 billion yuan and the repurchase price ceiling is 30 yuan / share, it is estimated that the number of Hengli Petrochemical Co.Ltd(600346) this repurchase will be 50 million shares, accounting for about 0.71% of the total share capital of the company. According to the plan, all the shares repurchased this time will be used for the employee stock ownership plan.
