After Midea, Gree also offered a buyback plan with a maximum amount of more than 10 billion yuan.
On the evening of May 26th, Gree Electric Appliances announced that the company intends to buy back shares at a price of no more than RMB 70 per share at a price of 7.5 billion-15 billion yuan. The repurchased shares will be used to implement the company's employee stock ownership plan or equity incentive. This is the prelude to Gree's third big buyback plan in recent years.
In April 2020, Gree Electric Appliances launched its share buyback program for the first time. At that time, Gree Electric Appliances announced that the total amount of funds to buy back the shares of the company was not less than 3 billion yuan and not more than 6 billion yuan. At the end of February this year, Gree Electric Appliances announced that the company's first phase of the buyback program had been completed, with a maximum transaction price of 60.18 yuan per share and a minimum transaction price of 53.01 yuan per share, with a total transaction amount of 5.999 billion yuan (excluding transaction fees).
During the implementation of the first share buyback plan, Gree Electric Appliances also announced the second round of share repurchase plan in October 2020, and announced the completion of the second phase of share repurchase on May 18 this year, with a total repurchase of about 101 million shares, with a turnover of 6 billion yuan. Two rounds of buybacks were completed, and Gree Electric Appliances took more than a year, with a total cost of 12 billion yuan.
Gree's renewed buyback move may have something to do with recent share prices that have been weakening. Just yesterday, when white horse shares generally rebounded, Gree Electric Appliances fell in volume and its share price refreshed its new low for the year. Today, the stock closed up 0.54 per cent and fell more than 9 per cent for the year. Although it has not fallen much this year, Gree, which fell 2% in 2020, looks particularly lonely compared with the white horse stock, which generally rose last year.
However, investors in the stock bar have different attitudes towards this big buyback plan. Some investors said that buyback is actually not a good thing, companies can not always use capital buybacks to maintain stock prices, you still have to develop. Some investors said that Gree's buyback is worthy of praise and can be regarded as a real thing.
Not only Gree, but also the buyback of another home appliance giant, Midea, can also be called a big deal. On May 10, Midea launched the second round of stock buyback program this year, intending to buy back the company's shares at a price of no more than 2.5 billion yuan per share at a price ranging from 2.5 billion yuan to 5 billion yuan.
It is worth noting that before that, Midea's buyback plan in February this year was called "the largest buyback in the history of A-shares", with an upper limit of 14 billion yuan. Finally, in April, Midea announced that the buyback program had been completed ahead of schedule, with a cumulative repurchase amount of 8.664 billion yuan. Data show that Midea has repurchased nearly 20 billion yuan since 2019.
In terms of stock price performance, Midea's stock price failed to continue its strong performance this year after a big rise last year, and the two big buybacks have not had a significant boost on the stock price. As of press time, Midea is down more than 14% this year.
