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faced with the recent sluggish stock prices, kweichow moutai has taken action!

on the evening of september 20, kweichow moutai (sh600519, share price 1,263.92 yuan, market value 1.59 trillion yuan) issued an announcement that it plans to spend 3 billion to 6 billion yuan to repurchase the company's shares, with the repurchase price not exceeding 1,795.78 yuan per share.

kweichow moutai said that the repurchase is mainly to safeguard the interests of listed companies and investors and enhance investment confidence. under the premise of ensuring that the company's normal operations and long-term development are not affected, according to relevant regulations, kweichow moutai plans to implement a share repurchase plan with its own funds, and the repurchased shares will be used to cancel and reduce the company's registered capital.

this repurchase plan is the first repurchase by kweichow moutai in its 23 years of listing.

kweichow moutai implements repurchase for the first time

according to the announcement of kweichow moutai, the total amount of funds for this share repurchase will not be less than 3 billion yuan and not more than 6 billion yuan, and the upper limit of the repurchase price is 1,795.78 yuan per share. it is estimated that the number of shares repurchased this time will be approximately 1.6706 million shares to 3.3412 million shares, accounting for approximately 0.13% to 0.27% of the company's total issued share capital on the date of this announcement.

as of june 30, 2024, kweichow moutai’s total assets were rmb 279.207 billion, its net assets attributable to shareholders of listed companies were rmb 218.576 billion, and its cash and cash equivalents were rmb 145.267 billion.

assuming that the upper limit of rmb 6 billion for the repurchase of shares is fully used, the repurchase funds will account for approximately 2.15% of the company's total assets as of june 30, 2024, 2.75% of the net assets attributable to shareholders of listed companies, and 4.13% of cash and cash equivalents.

kweichow moutai stated that after the implementation of this repurchase plan, it will not have a significant impact on the company's daily operations, finance, research and development, profitability, debt repayment ability, future development and maintaining its listing status.

image source: daily economic news data map

according to regulations, the above proposal needs to be submitted to the shareholders' meeting of kweichow moutai for deliberation, and the implementation period is within 12 months from the date when the shareholders' meeting deliberates and approves the repurchase plan. as of the date when the board of directors of kweichow moutai deliberates and approves the repurchase plan, the controlling shareholder, actual controller, directors, supervisors and senior management of the listed company have no plans to reduce their own company's shares in the next three months or the next six months.

in addition, according to the securities times, on september 9, kweichow moutai held a semi-annual performance briefing for 2024. senior executives including chairman zhang deqin, secretary of the board of directors jiang yan, and independent director wang xin attended the meeting and responded to topics of general concern to all sectors.

at that time, some investors suggested that the company should repurchase and cancel shares to reduce share capital and increase the gold content per share. has the company considered this? in response, zhang deqin said that in light of the current stock market situation and the company's actual situation, we have conducted a systematic study on different market value management measures. if there are any related plans in the future, we will strictly follow the corresponding decision-making review procedures and announce them in accordance with relevant regulations.

now, the latest repurchase plan of kweichow moutai has been released, which has positively responded to investors' expectations.

the wholesale price has fallen below the issue price

scalpers suspend recycling of longmao

it is worth noting that this 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. on september 19, the lowest price reached 1,245.83 yuan per share, a new low in nearly four years. as of the close of the 20th, kweichow moutai's share price closed at 1,263.92 yuan per share, with a cumulative decline of more than 25% this year.

according to china business news, after the sluggish mid-autumn festival peak season, moutai prices have entered a downward channel again.

on the 20th, many scalpers in beijing told reporters that they no longer repurchased the year of the dragon maotai, saying that its wholesale price had fallen below the issue price (2,499 yuan per bottle), and that wine merchants were worried about the subsequent price trend of maotai.

the reporter noticed that on september 19, some netizens complained that the dragon year maotai they won on the imoutai app was rejected by scalpers. later, the reporter learned from several scalpers that the wholesale price of longmao has fallen below 2,500 yuan per bottle, falling below the launch price, so they have to suspend the recycling of longmao.

on january 7, 2024, the year of the dragon maotai was officially launched on the imoutai app, with a selling price of 2,499 yuan/bottle. at the beginning of its listing, longmao was once speculated by the market to 6,000 yuan/bottle, but by may and june, the price of longmao had fallen below 3,000 yuan/bottle, and in mid-august it fell to around 2,800 yuan/bottle.

a jiangsu wine merchant told reporters that the biggest impact is currently on scalpers, and that quite a few people have made reservations for longmao on imoutai recently. at present, there are many shipments of moutai products including longmao in the market, but the demand is insufficient and the wait-and-see sentiment is strong, resulting in a continuous decline in the overall market price of moutai.

independent wine industry commentator xiao zhuqing told reporters that changes in moutai's market prices are mainly affected by changes in the market and economic environment. currently, the recycling prices of shudi, guojiao 1573 and wuliangye are also sluggish, and scalpers have even begun to refuse to accept cultural and creative products from all wineries.

the reporter saw on third-party private quotation platforms such as "today's wine price" that on september 20, the wholesale price of the original box of 2024 feitian moutai was 2,470 yuan/bottle, which has fallen below the 2,500 yuan mark, and has declined again compared with last week, continuing to approach the price of loose bottle feitian moutai, while the price of loose bottle feitian moutai is 2,365 yuan/bottle, the same as last week.

daily economic news, securities times, china business news, cailianshe, etc.

source: news night flight