Recently, listed companies on the science and Innovation Board intensively disclosed the progress of share repurchase, and many companies actively carried out share repurchase as an important source of shares in the equity incentive plan. At the same time, the number of cases of disclosing equity incentive plans has increased. From the content of the recently disclosed equity incentive plan, the grant price of most companies is more discounted than the current stock price level, and the intention to encourage and retain core talents is obvious.
active repurchase
Many listed companies on the science and innovation board have repurchased more than the lower limit of the repurchase plan.
On January 5, 2022, China’s leading professional optical lens supplier Fujian Forecam Optics Co.Ltd(688010) issued a progress announcement on the second phase of repurchase of the company’s shares by means of centralized bidding transaction. As of December 31, 2021, the company implemented the second phase of repurchase of the company’s shares by means of centralized bidding transaction through the trading system of Shanghai Stock Exchange. The number of shares repurchased was 967043, accounting for 0.63% of the company’s total share capital, The highest price of repurchase transaction is 29.82 yuan / share, the lowest price is 25.37 yuan / share, and the total amount of funds paid is 27.5108 million yuan (excluding stamp duty, transaction commission and other transaction expenses).
On May 16, 2021, Fujian Forecam Optics Co.Ltd(688010) held the 29th meeting of the second board of directors and agreed that the company would use its own funds to repurchase the second phase of shares through centralized competitive trading. The repurchased shares would be used for employee stock ownership plan or equity incentive at an appropriate time in the future. The repurchase price would not exceed 35 yuan / share (inclusive), and the total repurchase funds would not be less than 20 million yuan (inclusive), No more than 30 million yuan (inclusive).
The enterprise Nanya New Material Technology Co.Ltd(688519) that designs, manufactures and sells copper clad laminates announced on January 5, 2022 that as of December 31, 2021, the company had repurchased 1391900 shares through the trading system of Shanghai Stock Exchange by means of centralized bidding transaction, accounting for 0.59% of the total share capital of the company. The highest price of repurchase transaction was 49.98 yuan / share and the lowest price was 41.48 yuan / share, The total amount of funds paid is 63.9549 million yuan (excluding stamp duty, transaction commission and other transaction expenses). Previously, the company announced that it would repurchase the company’s shares in the form of centralized competitive trading, with a total repurchase fund of no more than 100 million yuan (inclusive), no less than 50 million yuan (inclusive), and a repurchase price of no more than 61 yuan / share (inclusive).
From the perspective of repurchase purpose, most companies actively repurchase for the purpose of equity incentive plan.
Suzhou Harmontronics Automation Technology Co.Ltd(688022) it was announced on January 4, 2022 that as of December 31, 2021, the company had repurchased 715519 shares by means of centralized bidding transaction through the trading system of Shanghai Stock Exchange, accounting for 0.6608% of the total share capital of the company. The highest price of the repurchase transaction was 31.77 yuan / share, the lowest price was 25.64 yuan / share, and the total amount of funds paid was 20.8636 million yuan (excluding stamp duty, transaction commission and other transaction expenses).
Previously, Cai Changwei, chairman and actual controller of Suzhou Harmontronics Automation Technology Co.Ltd(688022) company, based on his confidence in the company’s future development and recognition of the company’s value, proposed that the company repurchase some shares with its own funds and use the repurchased shares for employee stock ownership plan or equity incentive.
Some listed companies on the science and technology innovation board release equity incentive plans while actively repurchasing.
On January 4, 2022 Sansure Biotech Inc(688289) announced that as of December 31, 2021, the company had bought back 3608000 shares through the trading system of Shanghai stock exchange through centralized bidding, accounting for 0.9% of the total share capital of the company. The highest price of repurchase was 58.96 yuan / share and the lowest price was 53.07 yuan / share, The total amount of funds paid is about 200 million yuan (excluding stamp duty, transaction commission and other transaction expenses).
According to the 2021 restricted stock incentive plan (Draft) disclosed by Sansure Biotech Inc(688289) , the number of restricted shares to be granted to incentive objects in the incentive plan is 4.5 million, accounting for 1.13% of the total share capital of the company on the announcement date of the draft incentive plan. The incentive form adopted in the incentive plan is restricted stock (class II restricted stock), and the stock source is the company’s RMB A-share common stock repurchased from the secondary market or the company’s RMB A-share common stock issued to the incentive object.
intensive disclosure of equity incentive plan
Recently, listed companies on the science and innovation board have intensively disclosed equity incentive plans.
On January 8, 2022, the enterprise Uni-Trend Technology ( China) Co.Ltd(688628) engaged in the R & D, production and sales of testing and measuring instruments disclosed the 2022 restricted stock incentive plan (Draft). The incentive plan plans to grant a total of 3 million shares to the incentive objects, accounting for about 2.73% of the total share capital of the company on the announcement date of the draft incentive plan.
For the purpose of the restricted stock incentive plan, Uni-Trend Technology ( China) Co.Ltd(688628) said that it is mainly to further establish and improve the company’s long-term incentive and restraint mechanism, attract and retain excellent talents, fully mobilize the enthusiasm of the company’s core team, effectively combine the interests of shareholders, the company and the personal interests of the core team, so that all parties can jointly pay attention to and promote the long-term development of the company.
According to the 2021 A-share restricted stock incentive plan (Draft) recently disclosed by biomedical materials enterprise Shanghai Haohai Biological Technology Co.Ltd(688366) , 206 incentive objects were granted for the first time, accounting for 13.53% of the total number of employees of the company as of June 30, 2021, including the directors, senior managers Core technical personnel and other personnel deemed necessary by the board of directors. The number of restricted shares to be granted to the incentive objects in the incentive plan is 1.8 million, accounting for 1.02% of the total share capital of the company on the announcement date of the draft incentive plan. The grant price of restricted shares granted to the incentive object for the first time in the incentive plan is 95 yuan / share.
For the purpose of the equity incentive plan, Shanghai Haohai Biological Technology Co.Ltd(688366) pointed out that in order to further improve the corporate governance structure, establish and improve the company’s long-term incentive and restraint mechanism, attract and retain the company’s core managers and core technology or business backbone, fully mobilize their enthusiasm and creativity, effectively improve the cohesion of the core team and the core competitiveness of the enterprise, and effectively The interests of the company and the core team are combined to make all parties pay common attention to the long-term development of the company and ensure the realization of the company’s development strategy and business objectives.
Compared with the stock price, the grant price of many listed companies on the science and innovation board is more discounted.
The restricted stock incentive plan (Draft) for 2022 disclosed by the enterprise Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) providing R & D, design and system integration services of intelligent power station equipment for power enterprises on January 6, 2022 shows that the number of restricted shares to be granted to incentive objects in the incentive plan is 6815000 shares, accounting for about 6.37% of the total share capital of the company on the announcement date of the draft incentive plan. Among them, restricted shares granted for the first time accounted for 5.44% of the total share capital of the company at the time of announcement of the draft incentive plan. There are 51 incentive objects granted by the incentive plan, including non independent directors, senior managers, core technicians and other personnel deemed necessary by the board of directors when announcing the incentive plan.
According to the announcement of Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) , the grant price of restricted shares granted to incentive objects under the incentive plan is 8.47 yuan / share. As of the latest closing price, Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) share price is 16.1 yuan / share.
(source: China Securities Journal)
