Gree Electric intends to buy back 3-6 billion yuan of shares, and its share price has fallen by more than 13% during the year

On the evening of the 13th, Zhuhai Gree Electric Appliance Co., Ltd. (hereinafter referred to as “Gree Electric”) announced that the major shareholders proposed to buy back 3-6 billion yuan of shares of the company, with the buyback price no more than 70 yuan / share, for employee stock ownership plan or equity incentive. Gree Electric Co., Ltd. said that it plans to use its own funds to buy back the company’s shares by means of centralized competitive bidding. The types of shares to be repurchased are A-shares issued by the company. The total amount of capital is not less than 3 billion yuan (including) and not more than 6 billion yuan (including). The price of the shares to be repurchased is not more than 70 yuan / share (hereinafter referred to as “this repurchase”). According to the calculation of the highest repurchase fund of RMB 6 billion, it is estimated that the number of shares that can be repurchased is about 85714285 shares, accounting for 1.42% of the company’s current total share capital; according to the calculation of the minimum repurchase fund of RMB 3 billion, the number of shares to be repurchased is expected to be about 42857143 shares, accounting for 0.71% of the company’s current total share capital. Gree Electric pointed out that the buyback period should not exceed 12 months from the date when the company’s board of directors deliberated and approved the repurchase plan. The specific number of shares to be repurchased at the expiration of the repurchase period shall be subject to the actual number of shares to be repurchased at the expiration of the repurchase period, and the repurchased shares will be used for employee stock ownership plan or equity incentive. On why to buy back shares, Gree Electric explained that based on its confidence in the future development prospects of the company and its high recognition of the company’s value, combined with the company’s operating conditions, development prospects of its main business, its financial situation and its future profitability, it plans to use its own funds to buy back part of the public shares in the form of centralized competitive trading, so as to realize the goal In order to further improve the corporate governance structure, build a long-term incentive and restraint mechanism for management team shareholding, ensure the realization of the company’s long-term business objectives, promote the interests of all shareholders and share the benefits, and enhance the overall value of the company. According to Gree, the total amount of funds to be used for repurchase shall not be less than 3 billion yuan (including) and not more than 6 billion yuan (including). The specific total amount of repurchase funds shall be subject to the total amount of funds actually used for repurchase shares at the expiration of repurchase period. The buyback fund source is the company’s own funds. Gree Electric said that the implementation period of this buyback is within 12 months from the date when the company’s board of directors deliberated and approved the plan for repurchase of some public shares. If the following conditions are met during the repo period, the repo period will expire ahead of time, and the implementation of the repo scheme will be completed: if the use amount of the repurchase fund reaches the maximum limit within the repurchase period, the implementation of the repurchase scheme will be completed, that is, the repurchase period will expire early from that date. If the board of directors of the company decides to terminate the repurchase plan, the repurchase period will expire earlier from the date when the board of directors decides to terminate the repurchase plan. The company will make a buyback decision according to the market situation within the repurchase period and implement it according to law. Gree Electric Appliances said that after the implementation of the repurchase plan, the proportion of shares held by the public in the total number of shares of the company is still more than 10%, which will not lead to the company’s equity distribution not meeting the listing conditions, and the repurchase will not affect the company’s listing status and lead to changes in the company’s control rights. Gree Electric said that after the repurchase was approved by the board of directors of the company, there was still a risk that the repurchase plan could not be implemented because the company’s stock price continued to exceed the price ceiling disclosed in the repurchase plan. There is still a risk that the plan can not be implemented according to the plan due to the occurrence of major events that have a significant impact on the trading price of the company’s shares or the decision of the company’s board of directors to terminate the repurchase plan. Gree Electric pointed out that due to the failure of the equity incentive plan or employee stock ownership plan to be deliberated and approved by the company’s board of directors or the general meeting of shareholders and other decision-making bodies, and the equity incentive objects gave up their subscription, there was a risk that the repurchase shares could not be fully granted due to the failure to transfer the repurchase shares to the equity incentive plan when the validity period of the treasury shares in the repurchase account expired The risk of ESOP. In case of significant changes in the repurchase, the company will timely disclose the corresponding progress announcement. According to the semi annual report of Gree Electric appliances in 2020, in the first half of the year, Gree’s operating revenue reached 69.502 billion yuan, a year-on-year decrease of 28.57%, and the net profit attributable to the shareholders of the listed company was 6.362 billion yuan, down 53.73% year-on-year. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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