Meihua Holdings Group Co.Ltd(600873) ( Meihua Holdings Group Co.Ltd(600873) ) announced on May 22 that based on the confidence in the future development of the company and the recognition of the company’s value, after comprehensive consideration of the company’s operation, financial status and other factors, the controlling shareholder Meng Qingshan proposed that the company plans to repurchase the company’s shares with its own funds with a total amount of no less than 800 million yuan (inclusive) and no more than 1 billion yuan (inclusive), and the repurchased shares are used for cancellation, reduce the registered capital, and the repurchase price is no more than 12 yuan / share.
Assuming that Meihua Holdings Group Co.Ltd(600873) uses the upper limit of 1 billion yuan of total funds to repurchase at the share price of 12 yuan / share, the number of shares repurchased is expected to be about 833333 million, accounting for about 2.69% of Meihua Holdings Group Co.Ltd(600873) current total share capital.
Meihua Holdings Group Co.Ltd(600873) ‘s previous share repurchase plan has just been implemented Meihua Holdings Group Co.Ltd(600873) the total funds of the previous repurchase shall not be less than 200 million yuan (inclusive) and not more than 300 million yuan (inclusive), and the source of funds shall be self owned funds. On November 15, 2021, Meihua Holdings Group Co.Ltd(600873) implemented the share repurchase for the first time, and disclosed the share repurchase for the first time on November 16, 2021
According to the announcement of Meihua Holdings Group Co.Ltd(600873) 5 on May 9, as of the disclosure date of the announcement, the company has completed the repurchase, and has actually repurchased 260849 million shares of the company, accounting for 0.84% of the total shares of the company. The highest repurchase price is 8.99 yuan / share, the lowest repurchase price is 6.50 yuan / share, the average repurchase price is 7.68 yuan / share, and the total amount of funds used is 200 million yuan.
According to the audit, as of December 31, 2021, Meihua Holdings Group Co.Ltd(600873) total assets are 20.921 billion yuan, net assets attributable to shareholders of listed companies are 10.622 billion yuan, and monetary capital on account is 3.396 billion yuan; In 2021, the operating income was 22.837 billion yuan and the net cash flow from operating activities was 3.670 billion yuan. As of March 31, 2022 (Unaudited), Meihua Holdings Group Co.Ltd(600873) total assets are 22.373 billion yuan, net assets attributable to shareholders of listed companies are 11.842 billion yuan, and monetary funds on account are 3.069 billion yuan; In the first quarter of 2022, the operating income was 6.712 billion yuan and the net cash flow from operating activities was 728 million yuan.
Meihua Holdings Group Co.Ltd(600873) in the latest disclosure announcement, the company said that the monetary capital on the account of the company is sufficient. Assuming that the repurchase funds of 1 billion yuan have been used up, the repurchase amount accounts for about 4.47% of the total assets of the company and 8.44% of the net assets attributable to the shareholders of the listed company on March 31, 2022. According to the current operation and financial situation of the company, this repurchase will not have a significant impact on the operation, finance and future development of the listed company, and the interests of creditors will not be significantly affected.
On November 7, 2021, when the Meihua Holdings Group Co.Ltd(600873) board of directors received the proposal of chairman Wang Aijun on repurchasing the company’s shares, the company’s share price was still about 6.3 yuan. After the disclosure of the news, Meihua Holdings Group Co.Ltd(600873) ‘s share price showed a trend of shock and rise. On May 12 this year, the share price of Meihua Holdings Group Co.Ltd(600873) reached 9.41 yuan at one time, with a maximum cumulative increase of nearly 50%, significantly outperforming the market.
Although the stock price trend of listed companies will be affected by many factors, combined with the public information and the stock price trend of the company, the news of the previous share repurchase has played a certain role in boosting the stock price of Meihua Holdings Group Co.Ltd(600873) .
This time, Meihua Holdings Group Co.Ltd(600873) plans to buy back more shares than the previous time, and company e will continue to pay attention to whether it will boost the company’s share price.
As of the closing on May 20, Meihua Holdings Group Co.Ltd(600873) reported at 8.95 yuan, up 0.17 yuan or 1.94%.
