After more than three years, Semiconductor Manufacturing International Corporation(688981) repurchased shares again.
On the evening of May 19, Semiconductor Manufacturing International Corporation(688981) H shares announced that it had repurchased 4.215 million ordinary shares of the company through the Hong Kong Stock Exchange on May 19 at a cost of HK $66.57 million.
Source: company announcement
Since the end of April, Semiconductor Manufacturing International Corporation(688981) ah shares have recovered. At the closing on May 19, its A-Shares were reported at 42.44 yuan / share and H shares at 15.88 Hong Kong dollars / share.
responding to market concerns
The reporter of China Securities Journal noted that when the stock price continued to callback in the early stage, some investors asked Semiconductor Manufacturing International Corporation(688981) whether there was a repurchase plan through the “SSE E interaction” platform.
Semiconductor Manufacturing International Corporation(688981) 1 replied on January 6 that the 2021 annual general meeting of shareholders authorized the board of directors to timely repurchase no more than 10% of the issued Hong Kong shares of the company on that day, which is valid until the end of the 2022 annual general meeting of shareholders of the company. If the company has a stock repurchase arrangement, it will timely perform its letter Phi obligations in accordance with relevant authorization and regulations.
Source: company announcement
On May 6, Semiconductor Manufacturing International Corporation(688981) again replied that according to the relevant regulations of the Hong Kong stock exchange, the company is currently in a silent period and does not meet the conditions for repurchase.
Source: company announcement
On May 19, Semiconductor Manufacturing International Corporation(688981) put into action. According to the announcement, the Company repurchased 4.215 million ordinary shares at a cost of HK $66.57 million through the Hong Kong Stock Exchange on the same day.
The number of repurchases completed above is still far from the scale of repurchases authorized by the board of directors of the company by the Semiconductor Manufacturing International Corporation(688981) annual general meeting of shareholders, but there is not much time left in the validity period of the authorization. According to the practice in recent years, Semiconductor Manufacturing International Corporation(688981) will hold the annual general meeting of shareholders in late June. Of course, if the company wants to continue repurchasing after the expiration of the above authorization period, Semiconductor Manufacturing International Corporation(688981) can submit the repurchase proposal at the next general meeting of shareholders.
It is worth mentioning that Semiconductor Manufacturing International Corporation(688981) last repurchase was more than three years ago. According to the prospectus, from September 2018 to October 2018, Semiconductor Manufacturing International Corporation(688981) repurchased 18.941 million ordinary shares of the company on the stock exchange of Hong Kong, and cancelled this part of repurchased ordinary shares in the same year.
Abundant funds in hand
According to the regulations, Semiconductor Manufacturing International Corporation(688981) the funds for repurchase must come from the distributable profits of the company.
Source: company announcement
According to the Chinese accounting standards for business enterprises, as of the end of the first quarter, Semiconductor Manufacturing International Corporation(688981) undistributed profit was 21.6 billion yuan, an increase of 13.6 billion yuan over the end of 2020.
As for no dividend in 2021, Semiconductor Manufacturing International Corporation(688981) independent non-executive director believes that the company’s current operating conditions, capital expenditure needs, future development and other factors are mainly considered, which is in line with the company’s long-term development needs and shareholders’ long-term interests, as well as the provisions of relevant laws and regulations, normative documents and the company’s profit distribution policies, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders.
Semiconductor Manufacturing International Corporation(688981) in hand, abundant funds. By the end of the first quarter, the company’s monetary capital balance had reached 80.6 billion yuan. However, Semiconductor Manufacturing International Corporation(688981) is building new wafer factories in Beijing, Shanghai and Shenzhen, with a large demand for funds. This year, Semiconductor Manufacturing International Corporation(688981) ‘s capital expenditure plan is about $5 billion.
Semiconductor Manufacturing International Corporation(688981) joint CEO Zhao Haijun said at the first quarter performance briefing that this year’s capital expenditure and production expansion will be promoted as planned. In the first quarter, the company added 28000 pieces of monthly production capacity equivalent to 8-inch wafers. It is expected that by the end of this year, the total increase of production capacity this year will exceed that of the past years.
Zhao Haijun said that the stock markets such as consumer electronics and mobile phones have entered the de inventory stage, while the incremental markets such as high-end Internet of things, electric vehicles, display, green energy and industry have not established enough inventory, which puts forward higher and more urgent requirements for production capacity, technological innovation and customer experience service.
