Midea Group has repurchased shares for 5 consecutive years, which has reached 25.2 billion yuan in the next three years of the industry's cold winter pressure.

Reporter Jia Li

Midea, known as the "King of Repurchase", announced on August 1 that as of July 31, the company accumulated a total of 29.447 million shares by concentrated bidding, accounting for 0.4210%of the company's total share capital. 60.05 yuan/share, the minimum transaction price is 50.14 yuan/share, and the total amount paid is 1.638 billion yuan (excluding transaction costs). This is the sixth cycle repurchase of Midea Group in recent years. From its publishing data, two -thirds of the lower limit of this reincarnation have been completed.

Regarding this reincarnation, the insiders of the Midea Group said in an interview with the Securities Daily reporter that "repurchase is the company's decision. The determination of the company's continuous innovation and development. "

5 consecutive years of repurchase

Total cost 25.2 billion yuan

Midea Group's stock repurchase began in March this year. At that time, Midea Group issued an announcement saying that Midea Group plans to spend 2.5 billion yuan to 5 billion yuan for repurchase, with a repurchase price of 70 yuan/share.

From the perspective of the repurchase, Midea Group's repurchase price is 55.6 yuan/share, which is far lower than the price limit. This also means that the company has completed two -thirds of the lower limit of the amount in the repurchase plan.

Regarding the purpose of repurchase and the use of shares, Midea Group stated in the announcement that the company will repurchase the company's shares with its own funds and will continue to implement the company's equity incentive plan or employee shareholding plan to further improve the company's governance Structure, build a long -term incentive and restraint mechanism for shares in an innovative management team.

In this regard, the above -mentioned people of Midea said, "After the repurchase is completed, if the company has not used the corresponding shares after three years, it will be canceled in accordance with the relevant rules."

In fact, Midea Group has repurchased for 5 consecutive years. Midea Group's repurchase journey dates back to 2018. That year, the home appliance market was not good as a whole, and the market value of Midea Group shrunk by 32%throughout the year. In less than half a year, the Midea Group completed the repurchase at a time, with a total payment of about 4 billion yuan. Since then, Midea Group has launched a repurchase plan for many years. From 2019 to 2021, Midea Group paid 3.2 billion yuan, 2.7 billion yuan, and 13.66 billion yuan for the repurchase.

According to preliminary statistics from the Securities Daily, since 2018, as of July 31, 2022, Midea Group repurchased a total of about 25.2 billion yuan, with an average repurchase price of about 62 yuan/share.

Industry adjustment will continue

Enterprises still face challenges

For the shrinking market value, Midea Group is also alert. In May this year, Fang Hongbo, chairman and general manager of Midea Group, judged at the investor exchange meeting: "The industry will usher in an unprecedented cold winter in the next three years."

At the moment, Midea Group does face many challenges.

"As the environment is made, the home appliance industry is facing a severe situation as a whole, and listed companies generally fall into the predicament of increasing income and increasing income. But the more economic difficulties, the more they can test whether the company has strong R & D innovation capabilities and whether it has core competitiveness. After the ebb, who will see it clearly in the naked swimming. "Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, said in an interview with the Securities Daily reporter.

The Midea Group's response strategy is to frequently push stock repurchase in the secondary market, transform and change the TOB business in business, and strategically shrink non -core business and suspend non -operating investment.

A senior person in the Midea Group revealed to reporters: "Since this year, although various policies have landed one after another, the external environment and the industrial environment are all turning, but it does not mean that the 'cold winter' has passed and the company is constantly adjusting."

Professor of Tongji University School of Telecommunications and Secretary -General of the Shanghai Artificial Intelligence Society, Wang Rie, told a reporter from the Securities Daily that "more opportunities are also brewing in the environment of the" cold winter ". At the same time, at the same time, each time the end of the cold winter, the market recovery is from the promotion of policy or investment. Enterprises should also seize the opportunity. "

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