Recently, listed companies have been enthusiastic about repurchasing shares. Wind data shows that as of press time of the Economic Information Daily reporter, 451 listed companies have carried out repurchases this year, and the repurchase plans of another 371 listed companies are being implemented. According to incomplete statistics, since this year, 11 listed companies have issued announcements voluntarily promising shareholders not to reduce their shareholdings in the company. According to many interviewed experts, whether it is an active repurchase or a voluntary commitment to “not reduce holdings”, they all reflect confidence in the company’s future development. Listed companies can also give back to shareholders by strengthening information disclosure or paying dividends, so that investors can truly feel the company’s value and gain.
More than 400 companies have implemented buybacks this year
On the evening of January 28, an announcement released by Focuslight Technology showed that on January 26, the company repurchased 345,000 shares of the company for the first time through a centralized bidding transaction through the Shanghai Stock Exchange trading system, accounting for 0.3818% of the company’s total share capital. The repurchase transaction was The highest price was 90.66 yuan/share and the lowest price was 88.8 yuan/share. The total amount of funds paid was approximately 31 million yuan. Prior to this, Liu Xingsheng, the controlling shareholder, actual controller, chairman and general manager of Juguang Technology, had proposed that the company conduct share repurchases through centralized bidding transactions and use them for employee stock ownership plans or equity incentives in the future.
Since the beginning of this year, many listed companies have launched buyback plans and used “real money” to boost investor confidence. Wind data shows that as of press time from the Economic Information Daily, a total of 451 listed companies have conducted buybacks this year. Among them, Gree Electric Appliances has made the most aggressive moves, repurchasing 30.5194 million shares since the beginning of this year, with a cumulative repurchase amount of 987 million yuan; CATL, ranked second, has repurchased 4.7099 million shares with a total repurchase amount of 987 million yuan. 739 million yuan.
Among them, Hebang Biotech has the largest number of repurchases, with a total of 141.6463 million shares repurchased since this year, with a repurchase amount of 327 million yuan. Hebang Biotechnology is an emerging joint-stock enterprise mainly engaged in chemical industry. In recent years, through industrial structure adjustment and core business transformation, its main business has shifted to biopesticides and other biological products, agriculture, fine chemicals, new materials and other industrial fields. Sanan Optoelectronics, Baosteel Co., Ltd. and Hengyi Petrochemical followed closely behind in the number of repurchases. The number of repurchases so far this year is 52.0135 million shares, 38.0192 million shares and 33.0917 million shares respectively.
“Behind the intensive disclosure of repurchase plans by listed companies, from a regulatory perspective, it is the result of regulators actively promoting the healthy development of the capital market. As a method of capital operation, repurchases help to increase the company’s earnings per share and market value , and can also optimize the company’s capital structure. Regulatory agencies encourage repurchases to guide listed companies to use funds more rationally and promote market stability. From the perspective of listed companies, through repurchases, companies can send positive signals to the market, indicating that The management believes that the company’s stock is undervalued, which will also help improve shareholders’ confidence in holding shares and the company’s market image.” Zhu Keli, executive director of the China Information Association and founding director of the Guoyan New Economic Research Institute, believes.
371 companies’ buyback plans are “on the way”
Currently, 371 listed companies are still implementing repurchase plans. The purpose of repurchase includes the implementation of equity incentives, market value management and employee stock ownership plans. For example, Aidi Precision plans to use 50 million to 100 million yuan (inclusive) to repurchase the company’s shares through centralized bidding transactions for employee stock ownership plans or equity incentives. The repurchase price shall not exceed 20 yuan/share (inclusive). The buyback period is from January 19 this year to January 18, 2025. On January 23, Aidi Precision repurchased 5,000 shares for the first time through centralized bidding transactions, with a total amount of 69,400 yuan.
On January 24, Neusoft Group held the 6th meeting of its 10th board of directors and reviewed and approved the “Proposal on Repurchasing the Company’s Shares through Centralized Bidding Transactions.” In order to safeguard the company’s value and shareholders’ rights and interests, the board of directors of Neusoft Group agreed that the company will use its own funds to repurchase the company’s shares through centralized bidding transactions. The total repurchase funds shall not be less than 100 million yuan (inclusive) and not exceed 200 million yuan (inclusive). The repurchase price shall not exceed RMB 12 per share, and the repurchase period shall be within 3 months from the date the company’s board of directors considers and approves the share repurchase plan. All shares obtained from the repurchase will be canceled after the repurchase is completed. On January 25, the company implemented its first repurchase, repurchasing approximately 6 million shares through centralized bidding, with a repurchase amount of approximately 50 million yuan.
According to Pan Helin, co-director and researcher of the Digital Economy and Financial Innovation Research Center of the International Joint Business School of Zhejiang University, the reasons behind the active buybacks of listed companies are that the current capital market is in a turbulent stage, and many stocks have low valuations. Through repurchases, listed companies can not only boost investor confidence, release positive signals for the listed companies’ improved operations, but also support stock prices through repurchases. Current supervision is also actively guiding listed companies to strengthen returns to investors and truly implement the “investor-oriented” concept. In the future, more listed companies may participate in buybacks.
In recent years, the secondary market has experienced frequent fluctuations, and how listed companies can boost investor confidence has become the focus of the market. Zhu Keli believes that, first of all, the company can improve its performance and profitability by strengthening its own operations and management, so that investors can see the company’s growth and development potential; secondly, the company can increase investment in research and development, promote technological innovation and product upgrades to enhance own core competitiveness; in addition, strengthening the transparency and timeliness of information disclosure is also an important means to enhance investor confidence. Through timely, accurate and complete disclosure of the company’s operating status and future development plans, investors can better understand the company’s operating conditions and future development plans. Future development prospects; in addition, listed companies can also give back to shareholders through dividends, bonus shares, etc., so that investors can truly feel the company’s value and gain.
Shareholders of 11 companies voluntarily pledged “not to reduce their holdings”
In addition to repurchases, according to incomplete statistics from a reporter from the Economic Information Daily, 11 listed companies have issued announcements voluntarily committing shareholders not to reduce their shareholdings in the company since the beginning of this year. In Zhu Keli’s view, shareholders’ commitment to “not reduce their holdings” has multiple positive meanings for the market, just like active repurchases. In a period of high volatility in the stock market, a commitment is equivalent to giving the market a “reassurance”, helping to stabilize market sentiment and stock prices, showing that shareholders are confident in the company’s future development. At the same time, commitments can also help reduce market selling pressure and create favorable conditions for stock price increases. More importantly, the commitment to “not reduce holdings” can enhance the company’s cohesion and centripetal force and promote the company’s long-term stable development.
For example, on the evening of January 28, Guobo Electronics issued an announcement stating that based on its confidence in the company’s future development prospects and recognition of its long-term investment value, the company’s shareholder Tianjin Fenghe Technology Partnership (Limited Partnership) (referred to as “Tianjin Fenghe”) voluntarily committed , within the next 12 months starting from January 26, 2024 (that is, from January 26, 2024 to January 25, 2025), it will not reduce its holdings of the company’s shares in any way. As of the date of the announcement, Tianjin Fenghe held approximately 29.8 million shares of Guobo Electronics, accounting for 7.45% of the company’s total share capital.
“Shareholders of listed companies proactively and voluntarily promise not to reduce their holdings, which shows that they are optimistic about the future development of the company. This behavior can also serve as a certain demonstration. Of course, the key to boosting confidence in listed companies is to improve their profitability and improve their main business. Make achievements on the market so that listed companies can pay dividends in cash.” Pan Helin said.