Hainan Mining Co.Ltd(601969) ( Hainan Mining Co.Ltd(601969) .sh; the previous closing price was 8.11 yuan, and the current total market value is 16.4 billion). The first incentive plan launched after listing is suspected to be ignored by employees.
Hainan Mining Co.Ltd(601969) announced on May 20 that the board of directors of the company reviewed and approved the proposal and decided on the incentive plan. The reporter of the daily economic news noted that Hainan Mining Co.Ltd(601969) this time mainly reduced the number of incentive objects. The main reason for the reduction is that more than 20% of the incentive objects completely abandoned the restricted shares to be granted. At the same time, more than 50 incentive objects gave up some of the restricted shares to be granted. The incentive objects who give up the restricted shares to be granted are mainly middle-level cadres and technical backbones of the company.
half of the incentive objects give up equity incentive
Hainan Mining Co.Ltd(601969) announced that among the 181 incentive objects determined in the company’s incentive plan, 44 incentive objects voluntarily gave up all the restricted shares to be granted by the company for personal reasons, and 52 incentive objects voluntarily gave up some of the restricted shares to be granted by the company for personal reasons. In view of this, the board of directors of the company adjusted the list of awards of the incentive plan. After the adjustment, the number of incentive objects was adjusted from 181 to 137, the number of First grants was adjusted from 17.574 million shares to 12.795 million shares, and the reserved part of 4393500 shares remained unchanged.
The reporter of the daily economic news found that the incentive objects who give up all or part of restricted stocks are mainly middle-level managers, three-level managers, technical backbones, model workers, craftsmen and other groups; Among the directors, supervisors and senior managers, only non independent director Xu Xiaoliang withdrew from the list of incentive objects, and he originally planned to be granted 200000 restricted shares.
“Their employees have given up equity incentive”, “ordinary people can’t afford to buy shares or understand the operation of the company, so it’s normal not to buy them”… In the stock bar, investors also talk about the adjustment of Hainan Mining Co.Ltd(601969) incentive plan.
From the disk, Hainan Mining Co.Ltd(601969) share price has fallen for a long time. From September 13, 2021 to March 22, 2022, the company’s share price fell by 62.89% in total; Since the disclosure of the incentive plan (Draft) on the evening of March 22, the company’s share price has fallen by 13.63%. As of the closing on May 20, the company’s share price closed at 8.11 yuan / share, which is still much higher than the grant price of restricted shares (5.36 yuan / share).
performance assessment requirements are not difficult
It is rare for incentive objects to give up the “benefits” given by listed companies on such a large scale. From the perspective of assessment conditions alone, it seems not difficult for incentive objects to meet the performance assessment requirements at the company level.
According to Hainan Mining Co.Ltd(601969) incentive plan (Draft), the assessment year for the lifting of restrictions on the sale of restricted shares granted in the first batch is three fiscal years from 2022 to 2024. During the period of lifting the sales restriction, the company needs to achieve two indicators: the growth rate of net profit and the amount of R & D and digital investment at the same time.
Among them, based on the three-year average net profit from 2019 to 2021 (the same below), the growth rate of net profit in Hainan Mining Co.Ltd(601969) 2022 should not be less than 10%, and the investment in R & D and digitization should not be less than 50 million yuan. In 2023, the growth rate of the company’s net profit shall not be less than 20%, or the cumulative growth rate of net profit from 2022 to 2023 shall not be less than 30%; The investment in R & D and digitization shall not be less than 60 million yuan. In 2024, the growth rate of the company’s net profit shall not be less than 30% or the cumulative growth rate of net profit in the three years from 2022 to 2024 shall not be less than 60%; The investment in R & D and digitization shall not be less than 70 million yuan.
From 2019 to 2021, the average net profit of Hainan Mining Co.Ltd(601969) is about 382 million yuan. Based on this estimation, the company’s net profit in 2022 needs to reach 451 million yuan (plus the incentive amortization expense in 2022 disclosed in the draft) Hainan Mining Co.Ltd(601969) 2021’s net profit reached 874 million yuan, an increase of 513.55% year-on-year; The net profit after deduction was 662 million yuan, a year-on-year increase of 374.52%. In this view, it seems that it is not difficult for the company to achieve the above performance objectives.
Hainan Mining Co.Ltd(601969) is mainly engaged in the business of iron ore mining, processing and sales, international trade of iron ore and mixed ore blending, and is engaged in the upstream full cycle business from oil and gas exploration, evaluation to development and production through its holding subsidiary rockoil.
It is worth mentioning that Hainan Mining Co.Ltd(601969) the annual net profit in previous years was only more than 100 million, and the net profit in 2018 even lost 635 million yuan. The breakout of the company’s performance in 2021 is mainly due to the overall upward cycle of bulk commodities such as iron ore, oil and gas and other factors.
