Ming Yang Smart Energy changes share buyback purpose, over 70 million shares to be cancelled
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Mingyang Smart Energy (601615) announced on September 24 that it will change the purpose of 70.0235 million A-shares held in its buyback account from 'employee stock ownership plan or equity incentive' to 'cancellation and capital reduction.' The shares were originally repurchased under a plan approved in May 2023, using up to 10 billion yuan (minimum 5 billion yuan) of the company's own funds via centralized bidding, with the buyback completed in February 2024. The company stated the change is based on its actual operating conditions and development strategy, aiming to enhance shareholder value, boost investor confidence, and protect the interests of a broad range of investors. Mingyang said the cancellation and corresponding reduction in registered capital were a prudent decision considering the company's situation, and that after the cancellation, shareholder returns are expected to improve.
Source report
Mingyang Smart Energy (601615) announced on September 24 that it plans to change the purpose of 70,023,500 A-shares currently held in its dedicated share repurchase securities account from "employee stock ownership plan or equity incentive" to "cancellation and capital reduction."
Background
In May 2023, Mingyang Smart Energy approved a share repurchase plan, proposing to use its own funds of no less than RMB 500 million (inclusive) and no more than RMB 1 billion (inclusive) to repurchase company shares through centralized bidding for the purpose of implementing equity incentives. The repurchase period was set at no more than 12 months starting from May 4, 2023. The company completed the share repurchase in February 2024.
Rationale for the Change
Mingyang Smart Energy stated that the change in the use of repurchased shares is based on the company's actual operating conditions and development strategy. The decision aims to:
- Enhance shareholder value
- Strengthen investor confidence
- Protect the interests of the broader investor base
The company noted that changing the purpose of the 70,023,500 shares to cancellation and corresponding capital reduction is a decision made after careful consideration of its operational circumstances. The move is intended to safeguard the interests of investors and boost market confidence. Upon completion of the cancellation, the company expects to further improve returns for shareholders.
Source
证券时报网Regional
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Mingyang Smart Energy to Cancel 70 Million Shares, Shift Buyback to Capital Reduction