This week, the share repurchase and shareholding loan have been implemented as a routine. According to Caixin Media, 34 listed companies disclosed the relevant information on repurchase, shareholding, and re-loan (see table below). Dongfang Shenghong plans to use its own funds and special loans for the largest amount of shareholding, with a maximum of up to 4 billion yuan. After Dongfang Shenghong, Xinyuren, and Peacebird announced their plans for special loan repurchase or shareholding, their stock prices all closed limit-up the next day.
Caixin Media News on November 16th (Edited by Ruoyu): Repurchase and shareholding loans of A-share listed companies have entered a "routine" phase. According to Caixin Media's incomplete statistics, as of the end of this week (November 11th to November 15th), including Changchun High-tech, Shenma Shares, Tinci Materials, Hotgen Biotech, Suzhou Hyc Technology, Leshan Giantstar Farming&Husbandry, Zhejiang Jiuli Hi-tech Metals, Shandong Delisi Food, Tianshui Zhongxing Bio-technology, Chacha Food, Guangdong Hybribio Biotech, Ningbo Huaxiang Electronics, Xinyuren, BOE Technology Group, Guangdong Shaoneng Group, Tangrenshen Group, Zhongshan Broad-ocean Motor, Shanghai Zhezhong Group, Jilin Aodong Pharmaceutical Group, Zhuhai Huafa Properties, Changhua Chemical, Chen Ke Ming Food Manufacturing, Shenzhen Sunlord Electronics, Tech Semiconductors, CETC Chips Technology Inc., Guangdong Orient Zirconic Ind Sci & Tech, Xiamen Intretech Inc., Ningbo Peacebird Fashion, Jiangsu Eastern Shenghong, Gansu Yasheng Industrial, China Tianying Inc., Beibu Gulf Port, Sailun Group, Nyocor, are among the 34 listed companies that disclosed repurchase, shareholding, and re-loan details. Specific details are as shown in the figure below.
Among the listed companies that announced plans to use special loans for share repurchase or shareholding, Dongfang Shenghong plans to use its own funds and special loans for the largest shareholding amount, with the maximum shareholding amount not exceeding 4 billion yuan.
On November 13th, Dongfang Shenghong, the world's largest photovoltaic-grade EVA producer, announced that the company's controlling shareholder, Shenghong Technology, and its concerted action parties Shenghong Petrochemical and Shenghong Suzhou planned to increase their A-share holdings through centralized competitive bidding on the Shenzhen Stock Exchange within six months from the announcement date. The total shareholding amount for this plan is not less than 2 billion yuan and not more than 4 billion yuan. In this plan, Shenghong Technology's shareholding amount is not less than 0.8 billion yuan and not more than 1.6 billion yuan; Shenghong Petrochemical's shareholding amount is not less than 0.6 billion yuan and not more than 1.2 billion yuan; Shenghong Suzhou's shareholding amount is not less than 0.6 billion yuan and not more than 1.2 billion yuan. The funding arrangement for the shareholding plan combines own funds and special loans. According to the announcement, three banks, China Construction Bank, Agricultural Bank of China, and Bank of China's branches or sub-branches, collectively provided a loan amount totaling 2.8 billion yuan for Dongfang Shenghong's shareholding support. In the secondary market, Dongfang Shenghong closed limit-up on November 14th.
Sailun Tire, a leading tire company, announced a proposed maximum shareholding amount second only to Dongfang Shenghong. On November 11th, Sailun Tire announced that the concerted action party Ru Yuan Ding Shi, a shareholder, plans to increase its holdings through centralized competitive bidding on the Shanghai Stock Exchange within six months from the date of the announcement. The total amount of this shareholding is not less than 0.5 billion yuan and not more than 1 billion yuan. Ru Yuan Ding Shi obtained a "Loan Commitment Letter" from Bank of Communications, which committed to provide a loan of 0.7 billion yuan for Ru Yuan Ding Shi's shareholding increase.
In terms of share repurchase, on November 13th, BOE Technology Group, a global leader in semiconductor display technology, products, and services with a total market value of over 166 billion yuan, announced that it received a "Loan Commitment Letter" from the Industrial and Commercial Bank of China's Beijing Branch, committing to provide 0.7 billion yuan and not more than 70% of the repurchase transaction price as a special loan fund for the repurchase of company shares. The loan term is 1 year, and the bank review and approval process has been completed. Previously, on October 30th, BOE Technology Group announced plans to repurchase shares not exceeding 1 billion yuan.
In addition, according to Caixin Media's incomplete statistics, among the stocks that closed limit-up the day after the announcement of the special loan repurchase or shareholding plans, besides Dongfang Shenghong, there are Xinyuren and Peacebird. On November 13th, Xinyuren, a major business focusing on the research, production, and sales of high-end equipment for intelligent manufacturing, announced that it plans to repurchase company shares through centralized competitive bidding, with the repurchase amount not less than 25 million yuan and not exceeding 50 million yuan, at a repurchase price not exceeding 24.93 yuan per share. The repurchase funding comes from own funds and a bank special loan provided by the Industrial and Commercial Bank of China's Longgang Branch in Shenzhen. Peacebird, a brand specializing in clothing production and retail for fashionable youth, announced on November 14th that the controlling shareholder, Peacebird Group, plans to increase its shareholding by 0.15 billion yuan to 0.3 billion yuan. The shareholding funding comes from the company's own funds and a special shareholding loan provided by the Bank of China's Ningbo Branch, with the special shareholding loan amount not exceeding 0.21 billion yuan.