After the debt financing tool was approved, Gree Electric started stock repurchase

After the debt financing tool was approved, Gree Electric started stock repurchase
Gree Electric has finally repurchased the stock.On the evening of April 12, Gree Electric announced that it planned to use its own funds to repurchase the company’s shares in a centralized bidding transaction, with a capital size of not less than 3 billion (inclusive) and not more than 6 billion (inclusive).In addition, the debt financing tool previously applied by Gree Electric has been approved for registration.The plan shows that, based on the maximum repurchase capital of USD 6 billion and the maximum share repurchase price of RMB 70 per share, it is estimated that the number of repurchased shares will be approximately 85.71 million shares, accounting for approximately 1 of the existing company ‘s total share capital.42%; based on the calculation of the lower limit of the total repurchase amount of 30 million US dollars and the maximum share price of 70 yuan per share, the estimated number of repurchasable shares is approximately 42.85 million shares, accounting for approximately 0 of the total share capital of the existing company.71%; the specific number of shares repurchased is based on the actual number of shares repurchased when the repurchase period expires.The announcement shows that as of September 30, 2019 (statutory audit), the company’s total assets were 291.8 billion US dollars, monetary funds were 136.2 billion US dollars, net assets attributable to shareholders of listed companies were 100.8 billion US dollars, and the company’s asset-liability ratio was 64.92%. Assuming that the maximum amount of funds is 6 billion US dollars, and based on the financial data of September 30, 2019, 60 billion funds account for approximately 2% of the company’s total assets.06%, accounting for approximately 5% of the company’s net assets attributable to shareholders of listed companies.95%.For the purpose of repurchase, Gree Electric stated that it has implemented the company ‘s fair incentive or employee shareholding plan, gradually improved the company ‘s governance structure, and constructed a long-term incentive and restraint mechanism for the management team ‘s shareholding to ensure the company ‘s long-term business goals and the promotion of all shareholders ‘Consistent interests and revenue sharing enhance the company’s overall value.Officials, many investors suggested Gree Electric to repurchase shares, this time finally wish came true.Recently, Gree has made frequent actions in market value management. In March, Gree Electric planned to register and issue debt financing instruments with a total amount of no more than 18 billion (inclusive), of which the size of the proposed ultra-short-term financing bills does not exceed 10 billion yuan (inclusive)), The scale of short-term financing bills does not exceed 3 billion (inclusive).On April 9, Gree Electric issued an announcement that debt financing instruments were approved to be registered.Midea Group, which is also a listed appliance company, is also unwilling to be lonely. In February this year, Midea Group launched a new round of stock repurchase plans. The number of shares to be repurchased is not more than 80 million shares and not less than 40 million shares.About 1% of the company’s current total share capital.14%.According to the calculation under the condition that the maximum number of repurchases is 80 million shares and the maximum repurchase price is 65 yuan per share, the estimated repurchase amount does not exceed 5.2 billion yuan.The repurchase purpose is also used for the company’s equity incentive plan and / or employee stock ownership plan.In addition, in February of this year, Midea Group also issued an announcement that it intends to apply to the China Interbank Market Dealers Association for registration and issuance of debt financing instruments that do not exceed RMB 20 billion (including USD 20 billion).Among them, ultra-short-term financing bills do not exceed 10 billion (inclusive), and medium-term notes do not exceed 10 billion (inclusive).Market analysis believes that repurchasing stocks is conducive to stable market sentiment in the short and medium term and the company’s constant.In addition, under the current environment in which market-based interest rates are declining rapidly, the bond issuance rate is expected to decrease, which can improve supply chain financial services, reduce expenditures in financial expenses, and continue to improve performance.Sauna, Ye Wang Chen Weicheng Editor Wang Jinyu Proofreading Wu Xingfa