In order to “protect the market” and save itself, the share repurchase of listed companies has gradually become a standard configuration. What is the effect of escort? It remains to be seen from the market that the share prices of many companies have not improved due to repurchase, including many buybacks of more than 1 billion scale.
According to the data of xingkuang of the financial Associated Press, 120 companies have released the board plan for repurchase this year, including 67 enterprises in Shenzhen stock market, 50 enterprises in Shanghai stock market and 3 enterprises in Beijing stock exchange. In terms of the repurchase progress, within three months, 93 have implemented the repurchase and 10 have completed the repurchase. In terms of repurchase scale, there are not a few large-scale repurchases this year. According to the proposed repurchase amount, there are 9 listed companies with more than 1 billion yuan; According to the actual selling amount, the repurchase amount of S.F.Holding Co.Ltd(002352) and Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) leading enterprises has reached 1 billion yuan.
Compared with the past, when most companies used their own funds to initiate repurchase, the form of share repurchase is also constantly innovating, among which bond issuance repurchase is becoming more and more popular day by day. On March 17 alone, China Molybdenum Co.Ltd(603993) , Polaris Bay Group Co.Ltd(600155) , Shanying International Holdings Co.Ltd(600567) and Southern Publishing And Media Co.Ltd(601900) 4 listed companies joined the bond issuance repo camp, among which China Molybdenum Co.Ltd(603993) even threw out the 10 billion bond financing plan.
For listed companies, the reason for share repurchase is usually based on the confidence in the company’s future development prospects and the recognition of the company’s value, but the reality is that the implementation process of share repurchase is not smooth all the way. According to the statistics of xingkuang, since 2021, 11 listed companies have announced the “premature death” of the share repurchase plan. The reason is that “every family has its own difficult experience”, or is forced by the pressure of cash flow, or encounters periodic challenges and difficulties, or because the share price cannot meet the repurchase conditions, of which Sundy Land Investment Co.Ltd(600077) also received a ticket due to the serious “shrinkage” of the repurchase quantity.
120 official announced repurchases in years, nearly 80% of which have been implemented
In terms of implementation progress, in less than three months this year, 93 of the 120 companies announced to join have implemented repurchase, accounting for nearly 80%, and the amount of share repurchase reached 5.863 billion yuan. 10 of them have completed repurchase, and 10 of them have completed reposreposback, with a total of 2.4 billion yuan spent on a total of 2.4 billion yuan, including the ‘ Poten Environment Group Co.Ltd(603603) 801 and Jiangxi Special Electric Motor Co.Ltd(002176) , of which Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) repurchased shares have been cancelled.
From the perspective of repurchase time limit, Zbom Home Collection Co.Ltd(603801) , Shenzhen Goodix Technology Co.Ltd(603160) , Ningbo Huaxiang Electronic Co.Ltd(002048) and Tianjin Zhonghuan Semiconductor Co.Ltd(002129) completed share repurchase within one month, and Tianjin Zhonghuan Semiconductor Co.Ltd(002129) completed share repurchase within two trading days. On January 13, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) announced that the repurchase plan issued by the company on January 11 had been implemented; The actual repurchase interval is from January 12 to January 13; During this period, the company has repurchased 9.5153 million shares of the company, with a total transaction amount of 391 million yuan.
Reporters have noticed that there are not a few large-scale buybacks by listed companies this year. According to the proposed repurchase amount, there are nine listed companies with more than $1 billion, and most of them are industry leaders. They are Midea Group Co.Ltd(000333) \ \ Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , UFIDA and Tongkun Group Co.Ltd(601233) are 1 billion respectively.
In terms of the actual repurchase amount, as of March 23, the actual repurchase amount comes from the actual repurchase amount. As of March 23, the Yantai Jereh Oilfield Services Group Co.Ltd(002353) 53535 \ (RMB 174 million), Hengli Petrochemical Co.Ltd(600346) (RMB 172 million), Yonyou Network Technology Co.Ltd(600588) (RMB 153 million) and Vantone Neo Development Group Co.Ltd(600246) (RMB 146 million).
several companies test the water and issue bonds for repurchase
In terms of the sources of repurchase funds, most of the company’s repurchases are self owned funds or self raised funds. Among them, the sources of repurchase funds used by three science and Innovation Board companies Genew Technologies Co.Ltd(688418) , Appotronics Corporation Limited(688007) and Sansure Biotech Inc(688289) are the over raised funds of the company’s IPO. For the reasons and purposes of the repurchase, the above three companies have said that the repurchase of the company’s shares with over raised funds is mainly based on the confidence in the company’s future development prospects and the recognition of the company’s value, and will use the repurchased shares for employee stock ownership plan or equity incentive at an appropriate time in the future.
On March 20, Appotronics Corporation Limited(688007) issued a proposal to buy back the company’s shares. According to the plan, the upper limit of the shares to be bought back is 740700 shares, the total amount is between 10 million yuan and 20 million yuan, the upper limit of the repurchase price is 27 yuan, the source of the repurchase funds is the over raised funds from the IPO, and the repurchase period is 6 months.
On March 22, Genew Technologies Co.Ltd(688418) announced that the company plans to use the over raised funds to repurchase the company’s shares in the form of centralized bidding transaction, with the total repurchase funds of RMB 10 million (inclusive) – 20 million (inclusive).
On March 23, Sansure Biotech Inc(688289) plans to repurchase some of the company’s issued a shares. The total amount of funds for this repurchase is no less than 80 million yuan (inclusive), no more than 120 million yuan (inclusive), and the repurchase price is no more than 60 yuan (inclusive). The source of funds is part of the working capital permanently supplemented by the company’s initial over raised funds in the early stage.
At the same time, the sources of repurchase funds of listed companies are also constantly innovated, among which bond issuance repurchase is becoming more and more popular. Different from self owned fund repurchase, bond issuance repurchase is more market-oriented. On the basis of using certain financial leverage, it has played a role in releasing the value of the company.
On March 17 alone, four listed companies joined the bond issuance repo camp, namely China Molybdenum Co.Ltd(603993) , Polaris Bay Group Co.Ltd(600155) , Shanying International Holdings Co.Ltd(600567) and Southern Publishing And Media Co.Ltd(601900) , among which China Molybdenum Co.Ltd(603993) boldly threw out a 10 billion bond financing plan.
After hours on March 17, China Molybdenum Co.Ltd(603993) disclosed that the company plans to apply for issuing a financing plan of public issuance of corporate bonds to professional investors of no more than 10 billion yuan (inclusive) on the Shanghai Stock Exchange.
Among them, some of the funds are intended to be used to buy back the company’s shares, which will be used to implement equity incentive, employee stock ownership plan or methods permitted by laws and regulations in the future.
Polaris Bay Group Co.Ltd(600155) announced on the same day that the company plans to repurchase the issued A-shares of RMB common stock by means of centralized bidding transaction, and the total amount of funds to be repurchased shall not exceed RMB 400 million. The capital source of the shares to be repurchased this time is the legally raised funds such as the issuance of corporate bonds.
In addition, Shanying International Holdings Co.Ltd(600567) repurchase price shall not exceed 3.7 yuan, and the total repurchase funds shall be 250500 million yuan Southern Publishing And Media Co.Ltd(601900) repurchase price shall not exceed 12 yuan, and the total repurchase funds shall be 80 million yuan to 160 million yuan.
last year, the repurchase plans of 11 companies died prematurely
In fact, the implementation process of share repurchase is not smooth. According to Starmine statistics statistics, from 2021 to the date of 2021, 11 listed companies have announced that their share repurchase plans have been “dead” from the share repurchase plans of 11 listed companies since 2021 to the date of 2021, according to the statistics statistics from Starmine statistics. Since 2021 to the date of 2021, 11 listed companies have announced “dead” in the share repurchase plans of 11 listed companies since 2021, from the year of 2021, according to the statistics from Starmine statistics. Since 2021, by the statistics statistics from Starmine statistics statistics statistics, from the year of the year of the star mine statistics, from 2021 to the date of 2021, 11 listed companies have announced their share repurchase plans for share repurepurepurepurepurepurepurepurepurepurepuback plans “that have been” dead “from the following the following: the Hongda Xingye Co.Ltd(002002) Hongda Xingye Co.Ltd(002002) 3737374of the 374, the ;, Newland Digital Technology Co.Ltd(000997) , Rightway Holdings Co.Ltd(600321) and Yunnan Energy New Material Co.Ltd(002812) . “Every family has its own hard to read classics” is a true portrayal of the reasons behind it, among which Sundy Land Investment Co.Ltd(600077) was warned because of the serious “shrinkage” of share repurchase.
Some are forced by cash flow pressure. On January 17, Myhome Real Estate Development Group Co.Ltd(000667) announced the termination of the repurchase plan launched in January 2021. As of January 14, 2022, Myhome Real Estate Development Group Co.Ltd(000667) has repurchased 228508 million shares in total, with a total cost of 399951 million yuan, which has not reached the lower limit of the overall repurchase scheme Myhome Real Estate Development Group Co.Ltd(000667) said that in order to ensure the company’s sustainable operation ability and debt performance ability, it decided to terminate the repurchase of the company’s shares in advance and give priority to the use of funds for daily operating expenses and rigid debt repayment.
Coincidentally, on February 22, Rightway Holdings Co.Ltd(600321) also terminated the repurchase of the company’s shares. As the repurchase amount was only 7.64% of the lower limit specified in the original repurchase plan, the company was questioned by the “lightning” of the Shanghai Stock Exchange. In response, Rightway Holdings Co.Ltd(600321) ‘s reply is that the net cash flow of operation is lower than expected. In order to focus on production and operation, the funds can only be used preferentially for daily operating expenses and rigid debt repayment, which are related to maintaining the stability of daily operation. Therefore, the company decided to terminate the repurchase of shares of the company.
Some companies encounter periodic challenges and difficulties due to their development. On July 29, 2021, Suning.Com Co.Ltd(002024) announced that due to the phased challenges and difficulties encountered by the company since this year, in order to ensure the stable operation and achieve healthy development of the company, the company will give priority to putting funds into the daily operation of the company in combination with capital needs, and plans to terminate the implementation of this share repurchase.
Some cannot meet the repurchase conditions due to the share price. On December 29, 2021, Shandong Chiway Industry Development Co.Ltd(002374) decided to terminate the repurchase of the company’s shares. As for the reasons for terminating the repurchase, Shandong Chiway Industry Development Co.Ltd(002374) said that recently, the company’s share price continued to be higher than the upper limit of the repurchase price and could not meet the repurchase conditions; At the same time, due to the restrictions of repurchase sensitive period and other factors, there are few trading days available for repurchase. In order to give better play to the maximum role of capital in production and operation and improve the efficiency of capital use, the company decided to terminate the repurchase of shares of the company after careful consideration.
Due to the obvious “breach” of share repurchase, some listed companies have been fined. On February 24, Sundy Land Investment Co.Ltd(600077) received the letter of decision on administrative supervision measures, and the company, the chairman and the board secretary were issued with warning letters; The reason is that the actual repurchase amount of the company only accounts for 6.15% of the lower limit of the repurchase plan, which is significantly different from the repurchase plan. At the same time, it also fails to timely and fully disclose the risk information of failing to implement the share repurchase plan as promised.
