On the evening of May 20, Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) , SZ; the previous closing price was 33.23 yuan) announced the second phase of the employee stock ownership plan (Draft). According to the announcement, the stock source of the employee stock ownership plan is the shares repurchased by the company, the stock scale is no more than 94.728 million shares, and the capital scale of the employee stock ownership plan is no more than 1.55 billion yuan. In addition, the closing price of the company’s shares is 32.50 yuan / share before the board meeting, which is equal to 16.50% of the company’s share repurchase price. The lock-in period of ESOP is 1 year.
It is understood that the holders of the second phase of the employee stock ownership plan include the company’s directors (excluding independent directors), supervisors and senior managers, as well as the middle-level cadres and core employees of the company and its holding subsidiaries who are recognized by the board of directors as important to the company’s overall performance and medium and long-term development. The total number of people to participate in the plan is no more than 12000. Among them, the priority subscription proportion of middle and grass-roots cadres, core employees and technical experts is 97.47%, and the subscription share of other executives is no more than 2.53%. If there is any surplus, Dong Mingzhu, chairman and President of the company, shall subscribe in combination with his own situation.
Gree Electric Appliances Inc.Of Zhuhai(000651) said that since 2012, the company has not implemented any incentive measures linked to equity for more than ten years. The first phase of employee stock ownership plan was launched only in 2021, covering only more than 4000 people. Compared with the incentive policies of other enterprises in the industry and the growing talent demand under the background of industrial diversification, it is still insufficient.
The performance evaluation indicators involved in the second phase of the employee stock ownership plan are: in the first attribution period, the net profit of Gree Electric Appliances Inc.Of Zhuhai(000651) in 2022 shall increase by no less than 2 billion yuan compared with that in 2020, and the return on net assets of the company in 2022 shall not be less than 22%, the cash dividend per share of the current year shall not be less than 2 yuan, or the total cash dividend shall not be less than 50% of the net profit of the current year; In the second vesting period, the net profit of the company in 2023 will increase by no less than 3 billion yuan compared with that in 2020, and the return on net assets of the company in 2023 will not be less than 21%, the cash dividend per share of the current year will not be less than 2 yuan or the total cash dividend will not be less than 50% of the net profit of the current year.
In addition to announcing the second phase of the employee stock ownership plan, Gree Electric Appliances Inc.Of Zhuhai(000651) 5 also disclosed the proposed adjustment of the performance evaluation indicators of the first phase of the employee stock ownership plan on the evening of May 20. After adjustment, the first vesting period requires that the Gree Electric Appliances Inc.Of Zhuhai(000651) net profit in 2021 shall increase by no less than 1 billion yuan compared with that in 2020, and the cash dividend per share in that year shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the net profit in that year; The second vesting period requires that the net profit of the company in 2022 increase by no less than 2 billion yuan compared with that in 2020, and the return on net assets of the company in 2022 shall not be less than 22%, the cash dividend per share of the current year shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the net profit of the current year.
The reporter of the daily economic news found that from the performance assessment requirements of the first ownership period of the first phase of the employee stock ownership plan, the adjusted indicators actually lowered the original performance objectives. However, the company also increased the assessment index of return on net assets.
Gree Electric Appliances Inc.Of Zhuhai(000651) explained that since the company launched the first phase of employee stock ownership plan in 2021, the external environment has changed greatly, and the production and operation are facing more uncertainty. In addition, Gree Electric Appliances Inc.Of Zhuhai(000651) also mentioned that since the third quarter of 2020, the price of bulk raw materials has continued to rise sharply. The tense geopolitical situation in early 2022 continued to promote the high fluctuation of bulk commodity prices. Covid-19 epidemic broke out repeatedly. The real economy is facing the triple pressure of shrinking demand, supply shock and weakening expectation. The risks, challenges and pressures faced by the company’s production and operation have doubled.
From the perspective of the overall environment, according to the total data pushed by Aowei cloud network (AVC), the retail sales of household appliances in China in the first quarter of 2022 was 144.4 billion yuan, a year-on-year decrease of 10.3%, of which the online market rarely decreased by 6.7%.
