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this is the first time that kweichow moutai, a major dividend payer, has announced a share repurchase since its listing 23 years ago.

this evening, kweichow moutai issued an announcement stating that the company plans to repurchase the company's shares through centralized bidding transactions. the repurchase amount is 3 billion to 6 billion yuan. the source of funds is the company's own funds. the purpose of the repurchase of shares is to cancel and reduce the company's registered capital. the repurchase price of shares shall not exceed 1,795.78 yuan per share (inclusive). the repurchase period of shares shall be within 12 months from the date on which the company's shareholders' meeting deliberates and approves the repurchase plan.

the announcement shows that based on the company's current total share capital of 1.256 billion shares, with a total repurchase amount of no less than rmb 3 billion (inclusive) and no more than rmb 6 billion (inclusive), and a repurchase price cap of rmb 1,795.78 per share, the number of share capital changes is expected to decrease by 1.6706 million shares to 3.3412 million shares. after the repurchase and cancellation, the company's total share capital is expected to decrease to 1.255 billion shares to 1.253 billion shares.

according to the announcement, as of june 30, 2024, the company's total assets are rmb 279.207 billion, the net assets attributable to shareholders of the listed company are rmb 218.576 billion, and the cash and cash equivalents are rmb 145.267 billion. assuming that the rmb 6 billion upper limit of the repurchase funds is fully used, the repurchase funds account for approximately 2.1489% of the company's total assets as of june 30, 2024, 2.7450% of the net assets attributable to shareholders of the listed company, and 4.1303% of cash and cash equivalents.

in the announcement, kweichow moutai stated that the purpose of this share repurchase is to safeguard the interests of the company and the majority of investors and enhance investment confidence.

historically, kweichow moutai has mainly given back to investors in the form of dividends, and is a well-known dividend payer. according to wind data, the cumulative dividend amount of kweichow moutai since its listing is 232.6 billion yuan. on august 8, 2024, kweichow moutai announced the "2024-2026 annual cash dividend return plan". from 2024 to 2026, the total amount of cash dividends distributed by the company each year shall not be less than 75% of the net profit attributable to the parent company in that year. in principle, dividends will be paid twice a year.

the repurchase is also seen as an important means for kweichow moutai to maintain its share price. this year, kweichow moutai's share price has been weak. since may, the stock price has shown a clear downward trend. yesterday's lowest price reached 1,245.83 yuan per share, a new low in nearly four years. as of today's close, kweichow moutai's share price closed at 1,263.92 yuan per share, and the stock price has fallen by more than 25% this year.

in addition to the stock price, the price of moutai is no longer strong. the latest wholesale reference price disclosed by today's liquor price shows that the price of 2024 feitian moutai loose bottle is 2,365 yuan/bottle, the same as the previous day; the price of 2024 feitian moutai original box is 2,470 yuan/bottle, down another 20 yuan from the previous day.

in addition, it was reported that many scalpers in beijing revealed that they no longer buy the year of the dragon maotai, saying that its wholesale price has fallen below the issue price (2,499 yuan per bottle), and wine merchants are worried about the subsequent price trend of maotai.

liquor industry commentators said that the change in moutai's market price is mainly affected by changes in the market and economic environment. at present, the recycling prices of shede, guojiao 1573 and wuliangye are also sluggish, and scalpers have even begun to refuse to accept all cultural and creative products from all wineries. it is expected that the demand for liquor will remain sluggish from the national day to the spring festival this year, and the specific situation needs to be further observed.