Giant Network Group Co.Ltd(002558) 3 on March 16, the repurchase plan was launched for the third time: it is planned to use its own funds of no more than 600 million yuan (inclusive) and no less than 300 million yuan (inclusive) to repurchase some A-share social public shares through centralized competitive trading of Shenzhen Stock Exchange at a price of no more than 15 yuan / share (inclusive), and the repurchased shares will be used for employee stock ownership plan or equity incentive plan, The repurchase period shall be within 12 months from the date of deliberation and approval by the board of directors. As of the closing of the day, the company’s share price was 9.38 yuan / share.
The company said that the repurchase is to effectively safeguard the interests of shareholders, enhance investor confidence, further improve the company’s long-term incentive mechanism, fully mobilize the work enthusiasm of the company’s managers and core teams, and promote the long-term development of the company.
It is reported that on November 2, 2018, Giant Network Group Co.Ltd(002558) shareholders’ meeting approved the first repurchase plan in the history of the company, which plans to invest 1 billion yuan (including) – 2 billion yuan (including), and repurchase some shares through centralized bidding trading of Shenzhen Stock Exchange at a price of no more than 25 yuan / share; By October 30, 2019, the implementation was completed, and a total of 80174300 shares were repurchased, accounting for about 3.9604% of the total share capital at that time. On October 28, 2020, the company launched the second repurchase plan, which plans to repurchase at a price of no more than 25 yuan / share (inclusive), and the total repurchase fund is no less than 450 million yuan (inclusive) and no more than 600 million yuan (inclusive); By October 27, 2021, the total number of repurchases was about 387918 million shares, accounting for 1.9162%, and the total transaction amount was about 539 million yuan (excluding transaction costs).
For the third repurchase of the company, if the upper limit of repurchase amount is 600 million yuan and the upper limit of repurchase price is 15 yuan / share, the number of shares repurchased is expected to be about 40 million shares, accounting for about 1.98% of the current total share capital of the company; If the lower limit of the repurchase amount is 300 million yuan and the upper limit of the repurchase price is 15 yuan / share, the number of shares repurchased is expected to be about 20 million shares, accounting for about 0.99%. The specific number of repurchased shares will be subject to the actual number of repurchased shares within the total repurchased amount.
As of September 30, 2021, Giant Network Group Co.Ltd(002558) total assets are RMB 11.883 billion, and net assets attributable to the parent company are RMB 10.578 billion, including current assets of RMB 3.487 billion and monetary capital balance of RMB 2.151 billion. Monetary capital is sufficient. The asset liability ratio is 10.58%; The amount of interest bearing liabilities was 439 million yuan, accounting for 3.70% of the total capital. The net cash flow from operating activities from January to September 2021 was 356 million yuan. If the upper limit of 600 million yuan of total repurchase funds is fully used, according to the financial data on September 30, 2021, the proportion of total repurchase funds in the company’s total assets, net assets attributable to the parent and current assets is 5.05%, 5.67% and 17.21% respectively, which will not have a significant impact on the company’s operation, finance, R & D, debt performance ability and future development.
