First of all, stock repurchase can effectively protect the investment value of listed companies from being underestimated. Foreign experience shows that when the company's stock price is seriously underestimated relative to the company's net assets or even cash assets, it sends a wrong signal to the market that is not conducive to the company's development, so it is necessary for the company to take necessary measures. Stock repurchase sends a message to the market that the company is dissatisfied with the serious stock price downturn, which can reverse the current situation of excessive stock price downturn. Once the repurchase is implemented, the company's net assets per share, profitability and other financial indicators will be improved, which can enhance the company's investment value. Enlarging this significance, the significance of stock repurchase to the whole stock market lies in that it can avoid the phenomenon that the investment value of listed companies has been generally underestimated for a long time, and it is of great significance to stabilize the stock market at this stage.
Secondly, under the background of solving the problem of non-tradable shares, it is of great practical significance for non-tradable shareholders of listed companies to allow stock repurchase, which will prompt listed companies to actively try when conditions permit. For example, when the stock price is seriously undervalued, some stock repurchases can promote the stock price to rise, and can stabilize and improve the value of circulating stocks in the market. Moreover, in the case of compensation for circulating shareholders, appropriately reducing the number of public shares is equivalent to possibly reducing the consideration that needs to be paid for obtaining the right to list and circulate.
How to deal with the company's share repurchase? Zhongyuan Internal Distribution Group Co., Ltd. (hereinafter referred to as "the Company") deliberated and passed the Proposal on Repurchase of the Company's Shares at the 23rd meeting of the 8th Board of Directors held on October 9th, 20th19th125th. The share repurchase report was disclosed on February 27, 2009+2065438. The company intends to use its own funds to repurchase A-share public shares issued by the company by centralized bidding, and the repurchased shares are intended to be used to convert corporate bonds that can be converted into shares issued by listed companies into shares. The total amount of repurchase funds is not less than 6,543.8 billion yuan and not more than 200 million yuan, and the upper limit of repurchase price is 8.4 yuan per share. The repurchase period shall not exceed 12 months from the date when the final share repurchase plan is reviewed and approved by the shareholders' meeting or the board of directors. If the company fails to achieve the above objectives within 36 months after the completion of share repurchase, all the repurchased shares will be cancelled.
According to the Listing Rules of Shenzhen Stock Exchange, Supplementary Provisions on Share Repurchase by Centralized Bidding of Listed Companies, Detailed Rules for the Implementation of Share Repurchase of Listed Companies of Shenzhen Stock Exchange (hereinafter referred to as "Repurchase Rules") and other relevant regulations, during the repurchase period of listed companies, in the first three months of each month,
The repurchase progress as of the end of last month was disclosed in the trading day, and the repurchase progress is now announced as follows:
As of June 365438+1October 3 1 20 19, the company has repurchased12,391898 shares through the special account for stock repurchase, accounting for about 2.04% of the company's current total share capital, and the highest transaction price is 7.04%.
The implementation process of the company's share repurchase strictly abides by the relevant provisions of Articles 17, 18 and 19 of the Repurchase Rules. The number of shares repurchased by the company every five trading days shall not exceed 25% of the accumulated turnover of 49,643,600 shares in the previous five trading days (2065,438+April 4, 2009). The time for the company to repurchase shares, the number of shares repurchased and the entrustment period of this transaction are all in compliance with the requirements of relevant laws and regulations such as the Repurchase Rules.