for the first time in 23 years since its listing! kweichow moutai: repurchase and cancellation
2024-09-21
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
this is the first time that kweichow moutai has launched a repurchase and cancellation plan since its listing 23 years ago.
on the evening of september 20, kweichow moutai disclosed the "plan to repurchase the company's shares by means of centralized bidding transactions" announcement, stating that the company intends to use its own funds of no less than rmb 3 billion (inclusive) and no more than rmb 6 billion (inclusive) to repurchase and cancel shares. the upper limit of the repurchase price is rmb 1,795.78 per share (inclusive). the number of shares to be repurchased is between 1,670,583 and 3,341,164 shares. the number of repurchased shares accounts for 0.1330% to 0.2660% of the company's total share capital. the share repurchase method is centralized bidding transactions.
regarding the purpose of repurchasing shares, kweichow moutai said that in order to safeguard the interests of the company and the majority of investors and enhance investment confidence, under the premise of ensuring that the company's normal operations and long-term development are not affected, in accordance with the relevant regulations of the china securities regulatory commission and the shanghai stock exchange, the company intends to implement a share repurchase plan with its own funds. the repurchased shares will be used to cancel and reduce the company's registered capital. kweichow moutai also mentioned that as of the date when the company's board of directors reviewed and approved this repurchase plan, the company's controlling shareholder, actual controller, directors, supervisors and senior management have no plans to reduce their holdings of the company's shares in the next three months or the next six months.
the announcement shows that as of june 30 this year, kweichow moutai's total assets were rmb 279.207 billion, net assets attributable to shareholders of the listed company were rmb 218.576 billion, and cash and cash equivalents were rmb 145.267 billion. assuming that the rmb 6 billion upper limit of the repurchase funds has been fully used, the repurchase funds account for approximately 2.1489% of the company's total assets as of june 30, 2.7450% of the net assets attributable to shareholders of the listed company, and 4.1303% of cash and cash equivalents.
kweichow moutai expects that after the implementation of this repurchase plan, it will not have a significant impact on the company's daily operations, finance, r&d, profitability, debt repayment ability, future development and maintenance of its listing status.
in fact, the repurchase and cancellation plan launched by kweichow moutai this time is the first measure taken by kweichow moutai in its 23 years of listing, and it is also a highly encouraged measure in the new "nine national policies" of the capital market.
at the 2024 semi-annual performance briefing held by kweichow moutai, an investor raised the question of "whether the company will consider the repurchase and cancellation model to boost market confidence". in response, kweichow moutai's management said that it will conduct a systematic study on different market value management measures based on the stock market situation and the company's actual situation, and will announce relevant plans in a timely manner in accordance with relevant regulations.
kweichow moutai is a well-known "dividend payer" in the a-share market. 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.
this year, kweichow moutai's performance continued to be strong, with revenue in the first half of the year increasing by 17.76% and net profit increasing by 15.88% year-on-year. however, the company's stock price continued to fall. as of the close of september 20, the stock price fell by more than 25% this year, breaking through the 1,300 yuan mark. as of the close of september 20, kweichow moutai's latest stock price was 1,263.92 yuan per share, with a total market value of approximately 1.59 trillion yuan.
industry insiders believe that kweichow moutai has currently achieved a simultaneous increase in intrinsic value and market value through market value management, enabling investors to form relatively stable expectations for stock prices and obtain relatively stable investment returns. it has also contributed to the formation of an atmosphere of long-term investment and value investment.
the so-called "cancellation-style repurchase" refers to the company buying back shares and canceling them by reducing the share capital, thereby reducing the company's share capital to a certain extent. when the market valuation is relatively attractive, the cancellation-style repurchase will increase earnings per share and shareholders' equity, while also optimizing the equity structure andtax savingsto enhance the “gold content” of listed companies.
the main purposes of cancellation-type repurchases include boosting investor confidence, stabilizing and enhancing company value, and sending positive signals to the market.
the state council issued an important document!the deputy governor of a large state-owned bank resignedafter the fed’s first rate cut: uncertainty increases, what will be the future monetary policy direction? source: financial times clientfollow the financial times wechat account for more exclusive news and information
