The announcement on the evening of September 12 revealed that the third phase of share repurchase of RMB 15 billion had been completed. Gree Electric Appliance opened up first and then fell on September 13. As of 11:00, its share price fell slightly by 0.92% to 40.86 yuan / share.
As of September 9 this year, Gree Electric had purchased about 316 million shares of the company through centralized bidding, accounting for 5.25% of the total share capital of the company. The highest transaction price was 56.11 yuan / share, the lowest transaction price was 40.21 yuan / share, and the total transaction amount was 14.99985 billion yuan.
Gree Electric said that the repurchase will not have a significant impact on the company’s operation, financial status, debt performance ability and future development. The repurchased shares will be used to implement the employee stock ownership plan or equity incentive, and the unused shares will be cancelled.
Since April 2020, Gree Electric connection has launched phase III share repurchase. In the first half of this year, Gree Electric completed the first two phases of share repurchase, with an investment of 6 billion yuan respectively. The third phase of repurchase will be larger, with a cost of no less than 7.5 billion yuan and no more than 15 billion yuan. The first repurchase will be implemented on May 31 this year and completed on September 9, taking about 100 days.
Gree Electric spent a total of about 27 billion yuan on the share repurchase of the above three phases. The shares repurchased in phase III of the original plan are used for employee stock ownership plan or equity incentive. Later, in order to boost the stock price, it was decided to cancel the shares repurchased in the second phase. Gree Electric will hold the second extraordinary general meeting of shareholders in 2021 on September 29 to consider the proposal to change the purpose of share repurchase and cancel it.
Mainly, Gree Electric launched an employee stock ownership plan of about 3 billion yuan in June this year. More than 10000 employees of Gree Electric will subscribe for shares at the price of 27.68 yuan / share, about 50% of the phase I repurchase price of Gree Electric, which puts pressure on Gree’s share price. From May 31 to September 9, Gree’s share price fell from 54 yuan / share to about 41 yuan / share, with a cumulative decline of more than 23%.
In the first half of this year, compared with the same period last year, Gree achieved a significant recovery growth after the epidemic, but it has not yet returned to the revenue and net profit level in the first half of 2019. Recently, Gree Electric continued to increase its online and offline promotion efforts. In September 13th tiktok administrative micro blog revealed that WeChat small program GREE Dong Mingzhu store, jitter GREE electronic live broadcast room, September 13th -9 18 days all have live promotion activities. Just this past weekend, Gree Electric also held a factory tour offline.
According to the latest research report of BOC securities, with the gradual weakening of the impact of the epidemic, from January to July this year, the completed area of housing in China increased by 25.67% year-on-year, and it is expected that the completion of real estate will continue to rise in the second half of the year. Domestic sales of household appliances are expected to continue to benefit. In addition, under the influence of the increase in cost caused by the rise in the price of raw materials, home appliance factories transfer the cost pressure by optimizing the product structure and increasing the terminal price. Leading enterprises have entered a new cycle of business adjustment and improvement, and the industry competition pattern has been further optimized.
In addition to the increasing market concentration of the air conditioning industry, Gree is also accelerating the pace of diversification. A new product of Gree’s DASONG mobile phone was exposed on September 11. It is equipped with Xiaolong 870 processor, 6.67-inch OLED screen and white panel design. It is expected to sell for between 2500 yuan and 3000 yuan. Gree still hopes that its mobile phone will become an important entrance to Gree’s smart home.
On August 31, Gree Electric Appliance acquired the controlling stake of Yinlong new energy to help it further develop a new track for energy storage and new energy vehicles. An industry veteran close to Gree Electric disclosed to the first financial reporter that Yinlong will make major adjustments in the next three months.