After announcing a $1 billion buyback plan at the end of November last year, the company has now launched a $2 billion buyback plan. On the evening of June 11th, Meituan announced that the board of directors had decided, according to the shareholder resolution passed at the June 30, 2023 shareholder meeting, to occasionally repurchase the company's B-class common stock on the open market for a total amount not exceeding $2 billion. The company will repurchase it under applicable rules. Meituan stated that the stock repurchase could demonstrate the company's confidence in its own business development and prospects, and ultimately benefit the company and create value for shareholders. Meituan's board of directors believes that the company's existing financial resources are sufficient to support stock repurchases while maintaining a stable financial situation.$MEITUAN-W (03690.HK)$After disclosing the plan, Meituan announced on the evening of January 10th that it had repurchased 5.63 million B-class shares of the company that day for approximately HKD 399 million. Calculated based on this amount, the average price of Meituan's repurchase this time was HKD 71.07 per share, which is Meituan's first share buyback since its listing.
On the evening of June 11th, Meituan announced that the board of directors had decided, according to the shareholder resolution passed at the June 30, 2023 shareholder meeting, to occasionally repurchase the company's B-class common stock on the open market for a total amount not exceeding $2 billion. The company will repurchase it under applicable rules. Meituan stated that the stock repurchase could demonstrate the company's confidence in its own business development and prospects, and ultimately benefit the company and create value for shareholders. Meituan's board of directors believes that the company's existing financial resources are sufficient to support stock repurchases while maintaining a stable financial situation.
Meituan stated that the stock repurchase could demonstrate the company's confidence in its own business development and prospects, and ultimately benefit the company and create value for shareholders. Meituan's board of directors believes that the company's existing financial resources are sufficient to support stock repurchases while maintaining a stable financial situation. Meituan currently has sufficient cash on hand. The financial report for the first quarter of 2024 released by the company on June 6th showed that as of the end of the quarter, it held cash and cash equivalents and short-term financial investments of CNY 50.8 billion and CNY 87.8 billion, respectively.
At the end of November 2023, Meituan's stock price continued to decline. On the morning of November 29th, Meituan announced that it would occasionally repurchase the company's shares on the open market for a total amount not exceeding $1 billion, effective from December 1st. Meituan's board of directors also stated that stock buybacks could demonstrate the company's confidence in its business outlook and prospects, and that the company's existing financial resources were sufficient to support stock repurchases while maintaining a stable financial position.
After the plan was announced, Meituan announced on the evening of January 10th that it had repurchased 5.63 million B-class shares of the company that day for approximately HKD 399 million. Calculated based on this amount, the average price of Meituan's repurchase this time was HKD 71.07 per share, which is Meituan's first share buyback since its listing.
From the trend perspective, Meituan's stock price rebounded significantly after hitting a new low in February 2023, with a current increase of more than 77% and a maximum increase of more than 90% in the range. Currently, Meituan's market value in the Hong Kong stock market exceeds HKD 710 billion.
Meituan currently has sufficient cash on hand. The financial report for the first quarter of 2024 released by the company on June 6th showed that as of the end of the quarter, it held cash and cash equivalents and short-term financial investments of CNY 50.8 billion and CNY 87.8 billion, respectively.
In the past two years, Hong Kong-listed technology and Internet companies have successively released large buyback plans. Journalists have noticed that since last year, internet technology companies including Meituan, Xiaomi, JD.com, and Kuaishou have announced the latest buyback plans.
On the evening of March 6th, JD Group announced that the board of directors has approved a new share buyback plan, which will take effect after the current share buyback plan expires on March 17, 2024. According to the new share buyback plan, the company can repurchase shares with a total value not exceeding $3 billion within the next 36 months before March 2027.
After releasing the first-quarter results for 2024, Kuaishou officially announced the start of a new round of stock buyback plan. Its plan is to repurchase stocks with a total value not exceeding HKD 16 billion in the next three years after the end of the shareholders' meeting in 2024. Before the disclosure of the new buyback plan, the company had already repurchased HKD 3.09 billion worth of B-class shares in its HKD 4 billion buyback plan launched last May.
On the evening of March 22nd, Xiaomi Group announced a share buyback plan. Xiaomi Group stated that the board of directors has officially decided to exercise the share repurchase authorization to repurchase shares on the open market for a total amount not exceeding HKD 10 billion on a non-regular basis. On the evening of March 24th, an announcement showed that Xiaomi Group repurchased 3.4094 million shares at a price range of HKD 14.44 to HKD 14.5 per share, costing nearly HKD 50 million.
Before Xiaomi, Alibaba announced that the upper limit of the stock repurchase scale was increased to US$25 billion (approximately RMB 160 billion).
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