Reporter Cao Weixin
Faced with the irrational decline in the stock market, since the beginning of this year, many listed companies have launched stock repurchase plans based on their confidence in future development.
On June 5, 2018, when the company's stock price fell by more than 7% for three consecutive days, Reco Defense launched a share repurchase plan, and planned to implement a repurchase plan of 100 million to 300 million yuan within two months after the shareholders' meeting reviewed and approved the relevant plan.
Deputy General Manager and Secretary of the Board of Directors Liu Xunyu said in an interview with a reporter from Securities Daily that due to the irrational decline in the company's stock price at that time, based on the company's long-term sustainable development and value growth, the company has implemented this share repurchase plan based on the company's long-term sustainable development and value growth, and has strengthened investors' investment confidence in the company. Combined with the company's development strategy, operating conditions and financial status, the company implemented this share repurchase plan. "As of now, the repurchase plan has been implemented, and the repurchase plan has also achieved the expected results of the company."
net profit in the first half of the year increased
's stock price " stalled downward"
has been listed on the A-share market in 2010. In recent years, through a series of external mergers and acquisitions, the company's main business has been greatly changed, from the production and sales of refrigerators, air conditioners, evaporators, condensers, aluminum plates (foils) and copper tubes to the research and development, manufacturing and sales of radar systems, digital systems, analog simulations, microwave components, radio frequency channel equipment, secure storage, microsystem packaging and other products.
Liu Xunyu told reporters that the company is currently operating well. With a series of competitive advantages such as independent intellectual property rights of core key technologies, strong technological innovation capabilities, chip R&D capabilities, technology and industry integration capabilities, the company's major businesses have steadily advanced and their performance has been stable in the first half of the year. The
report shows that in the first quarter, the company achieved operating income of 128 million yuan, and the net profit attributable to shareholders of listed companies after deducting non-operating items was 27.2536 million yuan, an increase of 8.49% and 15.5% year-on-year respectively. In the second quarter, the company's eight existing businesses grew steadily, and both revenue and net profit increased by more than doubled month-on-month. In the first half of the year, the company achieved overall operating income of 393 million yuan and net profit attributable to shareholders of listed companies of 67.9443 million yuan, a year-on-year increase of 33.16% and 34.64% respectively, and the company's overall gross profit margin reached 50.96%. While
's performance grew steadily, the company's stock price suffered an irrational decline.
On May 31, 2018, nearly half an hour before the closing of the noon market, Reike Defense suddenly crashed and hit the limit. The company's stock price continued to decline in the following two trading days. Statistics show that from May 31, 2018 to June 4, 2018, the company's stock price fell by 25.18% for three consecutive trading days, with an amplitude of 41.61%. At noon on June 5, after the board of directors reviewed and approved the share repurchase plan, the company promptly released the share repurchase plan. In addition to repurchase,
is often an effective means for companies to boost their stock prices when the market is sluggish. Speaking of repurchase, Liu Xunyu said that increasing holdings is generally taken at the shareholder level to boost market confidence. Since the company is currently in a state of no actual controller and its equity is relatively scattered, the company chose to repurchase shares this time.
spent 100 million yuan to repurchase
to boost market confidence
According to the repurchase plan, the company plans to use its own funds to repurchase the company's shares through centralized bidding transactions for cancellation. The total amount of repurchase is 100 million to 300 million yuan, and the repurchase price shall not exceed 9 yuan per share. The implementation period of the repurchase is no more than two months from the date of the shareholders' meeting deliberation and approval of the relevant plan.
As of August 22, 2018, the company has repurchased about 15.6605 million shares, accounting for 1.3554% of the company's total share capital. The highest transaction price is 7.19 yuan/share, the lowest transaction price is 5.57 yuan/share, and the total repurchase amount exceeds 100 million yuan. The reporter learned that at present, the company's share repurchase and cancellation matters have also been completed.
is different from some listed companies using shares for equity incentives after repurchasing shares, this time Reco Defense chose to cancel all the repurchased shares. At the same time, compared with the repurchase periods generally set by listed companies ranging from 6 months to 12 months, the repurchase period set by Reco Defense’s share repurchase plan is two months.
Liu Xunyu told reporters, "The reason why I chose to cancel the repurchase shares was a consensus formed by the management team after communication with shareholders. If used to reward employees, in the market atmosphere at that time, the purpose of repurchase is easily misunderstood by the market." Regarding the issue of the implementation period of the repurchase plan, Liu Xunyu said that except for him, the company's existing management team has only joined since the company's transformation and upgrading in 2015, in order to fully understand the efficient style and execution of the company's new management team, the company decided to shorten the repurchase within 2 months. "As of now, the repurchase plan has been implemented, and the repurchase plan has also achieved the expected results of the company."
talked about the recent proposal of the China Securities Regulatory Commission and multiple departments to improve the amendment of the share repurchase system of listed companies, and publicly solicited opinions on the draft Amendment to the Company Law of the People's Republic of China, Liu Xunyu said that the share repurchase of listed companies will help stabilize the company's stock price and boost investor confidence. The company, like other market participants, welcomed this measure very much. Regarding the purpose of repurchasing shares, Liu Xunyu put forward a suggestion, namely, whether the repurchasing shares of listed companies can be used for share payments in mergers and acquisitions, so that it can not only achieve the purpose of repurchasing, but also help the external development of listed companies.
