shares were lifted but not sold, and the lock-in period was actively extended
Since the beginning of this year, 43 listed companies have issued the announcement that the actual controllers, executives and other “family members” have extended the lock period, which has nearly doubled compared with the same period last year.
In the view of investment bankers, actual controllers and other “family members” took the initiative to extend the lock-in period, mainly because they were continuously optimistic about the future development of the company and believed that the follow-up share price could be expected. Of course, there are also situations where the stock price triggers the extension of lock-in period conditions.
It believes that the practice of extending the lock period has been recognized by many investors, and it does not rule out that more shareholders of listed companies will join the team of extending the lock period in the future.
nearly doubled year on year continued to hit a record high
According to the incomplete statistics of the reporter of Shanghai Securities News, since the beginning of the year, 43 listed companies have issued the announcement of extending the lock period, including the actual controller, senior executives and other relevant shareholders.
43 companies, nearly doubled over the same period last year. During the same period from 2018 to 2021, the number of companies that announced the extension of the lock up period of their shares was 12, 8, 8, 23 and 43 respectively
There are mainly two situations for shareholders to extend the lock up period. One is that shareholders voluntarily extend the lock up period, which means they recognize the long-term value of the company and have confidence in the future development of the company.
If the closing price of the company’s shares is lower than the closing price of the company’s shares within 6 months after the listing period is extended, for example, the closing price of the company’s shares is automatically locked within 6 months after the listing period is extended, or the closing price of the company’s shares is lower than the closing price of the company’s shares within 6 months after the listing period is extended.
Actively extending the lock-in period means that we can’t reduce our holdings for a considerable period of time, which often shows that major shareholders and other “family members” have confidence in the future development of listed companies.
For example, Shanghai Holystar Information Technology Co.Ltd(688330) 4 announced on April 7 that the company lifted the ban on 113447 million restricted shares on April 15. According to the previous announcement, the company’s chairman Zhang Hui, director and general manager Leng Chuntian and deputy general manager Lai anding announced that they would voluntarily extend the lock-in period of their direct holding of the company’s shares to 36 months from the date of listing. This means that the lock up period of the company’s shares directly held by them will be until October 14, 2023.
At present, there are few cases of executives voluntarily extending the lock-in period of direct shareholding to 36 months in listed companies, which shows Shanghai Holystar Information Technology Co.Ltd(688330) executives’ confidence in the future development of the company.
Yanker Shop Food Co.Ltd(002847) announced on February 7 that based on the recognition of the long-term value of the company and the confidence in the future development of the company, the controlling shareholders of the company voluntarily renewed their commitment to extend the lock-in period of 2 years to February 11, 2024 for the shares of the company that have been released from the sales restriction.
According to the data, the controlling shareholder Hunan Yanker Shop Food Co.Ltd(002847) Holding Co., Ltd. holds 483815 million Yanker Shop Food Co.Ltd(002847) shares, accounting for 37.4% of the total share capital of the company.
Nanjing Chervon Auto Precision Technology Co.Ltd(603982) announced on January 28 that Quanfeng Precision Technology Holding Co., Ltd., the controlling shareholder of the company, and Quanfeng (China) Investment Co., Ltd., the person acting in concert, voluntarily extended the lock up period of their shares of the company for 12 months to May 21, 2023.
Hangzhou Kelin Electric Co.Ltd(688611) received the letter of commitment on voluntarily extending the lock up period of restricted shares issued by shareholders on March 30. Based on their confidence in the company’s future development prospects and recognition of the investment value, the company’s directors Zhang Yanping, Lu Junying and supervisor Zhou Kang, including 17 shareholders including senior managers and natural person shareholders, promised to voluntarily extend the lock-in period of 24 months from the date of expiration of the sales restriction on April 11, 2022.
On February 25, Tianyu digital science department announced that Zhu ye, the company’s largest shareholder, based on his confidence in the company’s future development prospects and recognition of the company’s value, hereby promised to extend the lock-in period of holding shares of the company for one year in order to promote the sustainable, stable and healthy development of the company and safeguard the rights and interests of the company and all shareholders. Zhu Ye has voluntarily extended the lock-in period every year since 2017.
Litong technology, a listed company on the Beijing stock exchange, said that it had recently received the commitment on voluntary extension of share lock-in period issued by the controlling shareholder: Based on its confidence in the company’s future development prospects and recognition of the company’s development value, it promised to extend the share lock-in and reduction period involved in the company’s listing at the selected layer to February 25, 2023.
actively extending the locking period is favored by institutions
A private placement person in Shanghai believes that in recent years, the phenomenon of reducing holdings and cash out by major shareholders and executives of listed companies has occurred frequently, and investors in the secondary market are terrified by the “reduction”.
In contrast, companies that actively extend the lock period have played a very good exemplary role. In particular, some of these companies, which operate steadily and make healthy profits, are being recognized by institutional investors.
For example, in 2021, Yanker Shop Food Co.Ltd(002847) operating revenue increased by 17% year-on-year, and net profit attributable to parent decreased by 38% year-on-year. However, in the fourth quarter of 2021, the revenue and net profit increased by 25% and 38% year-on-year Citic Securities Company Limited(600030) believes that the company’s performance has improved quarter by quarter and promoted the layout of all channels. At present, the strategic adjustment has been effective. In the future, we will further explore other new channels to support the rapid growth of the company’s revenue.
At the end of 2021, 83 funds held Yanker Shop Food Co.Ltd(002847) 13949300 shares, an increase of 60% over the end of June 2021, with a market value of RMB 1.194 billion. The inflow of northward funds has also increased significantly since the beginning of the year.
At the end of 2021, 109 funds held Nanjing Chervon Auto Precision Technology Co.Ltd(603982) 28067200 shares in total, with a market value of 1.319 billion yuan. At the end of June 2021, the fund held 727800 shares. Since this year, northbound capital has increased its holdings against the trend in the decline of share price, and currently holds 7.2966 million shares.
