On the evening of June 20, Gree Electric announced the first phase of the employee stock ownership plan. The total number of employees who intend to participate in the employee stock ownership plan does not exceed 12,000. The capital scale of the employee stock ownership plan does not exceed 3 billion yuan, accounting for the company’s total share capital. 1.8%.
Southern Metropolis reporter noticed that, perhaps affected by this news, after the opening of the market on June 21, Gree Electric Appliances plummeted all the way. At the close of the market, Gree Electric Appliances stock price was 51.11 yuan, a decrease of 4.79%.
On the evening of June 20, Gree Electric announced the first phase of the employee stock ownership plan. The total number of employees who intend to participate in the employee stock ownership plan does not exceed 12,000. The capital scale of the employee stock ownership plan does not exceed 3 billion yuan, accounting for the company’s total share capital. 1.8%.
Southern Metropolis reporter noticed that, perhaps affected by this news, after the opening of the market on June 21, Gree Electric Appliances plummeted all the way. At the close of the market, Gree Electric Appliances stock price was 51.11 yuan, a decrease of 4.79%.
Gree Electric’s last large-scale equity incentive was in 2009. At that time, the major shareholder Gree Group transferred 16.042,500 shares of Gree Electric. The company’s senior executives provide equity incentives.
On April 15 this year, Gree Electric announced again that it plans to launch an employee stock ownership plan. The total number of stocks to be held in this employee stock ownership plan does not exceed 3% of the company’s total equity. The total number of stocks corresponding to the equity interests of a single employee The cumulative total does not exceed 1% of the company’s total equity. Gree Electric stated that the source of stocks for this employee stock ownership plan is the accumulated repurchased shares in the company’s special repurchase account and the shares obtained in a manner permitted by laws and regulations such as secondary market purchases.
Nandu reporter combed and found that since April 2020, Gree Electric has issued three share repurchase announcements. In 2020, Gree Electric Appliances repurchased shares twice, with a total of 12 billion yuan used to repurchase a total of 209 million shares, accounting for 3.48% of the company’s total share capital. On the evening of May 26, 2021, Gree Electric announced the highest of the new phase The 15 billion yuan stock repurchase plan is used to invest in equity repurchase for employee incentives, improve governance mechanisms, and do diversified businesses. The repurchase amount exceeds the sum of the previous two periods.
According to the announcement on June 20, the latest employee stock ownership plan intends to purchase the company’s repurchase shares at 27.68 yuan per share. The purchase price is equal to 50% of the company’s recent average price of repurchased shares, compared with the closing of the stock (53.68 yuan) last Friday. The price discount is as high as 51%. The total number of employees who intend to participate in this employee stock ownership plan does not exceed 12,000, including a total of 8 company directors (excluding independent directors), supervisors, and senior executives, as well as middle-level employees who have an important role in the company’s overall performance and medium and long-term development Cadres and core employees.
Among them, in this employee stock ownership plan, Dong Mingzhu intends to subscribe for a maximum of 30 million shares, and the proposed maximum amount of funds is about 830 million yuan, accounting for 27.68% of this employee stock ownership plan. Other directors or vice presidents subscribed for 600,000 shares, and employee supervisor Wang Fawen subscribed for 80,000 shares. The remaining shares are the company’s middle-level cadres and core employees. In addition, although employees can subscribe for Gree Electric’s shares at half price, this “benefit” also has additional conditions-the employee stock ownership plan has set a two-year performance appraisal period. The employee stock ownership plan assigns the corresponding rights and interests to the holders of the employee stock ownership plan in two phases according to the assessment results during the vesting evaluation period, and the attributable ratio in each phase is up to 50%. The evaluation indicators of the employee stock ownership plan are divided into company performance evaluation indicators and individual performance evaluation indicators. In the first vesting period, the net profit in 2021 will increase by no less than 10% compared to 2020, and the cash dividend per share for the year shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the net profit for the year. In the second vesting period, the net profit in 2022 will increase by no less than 20% compared to 2020, and the cash dividend per share for the year will not be less than 2 yuan or the total cash dividend will not be less than 50% of the net profit for the year. After the plan came out, some Gree Electric’s investors’ plan rebounded strongly, believing that the exercise and excitation conditions of the employee stock ownership plan were too loose: Due to the new crown epidemic in 2020, Gree Electric’s performance base for the year was very low. Performance as a benchmark to set the incentive conditions for employee stock ownership is too loose. In addition, Gree Electric’s share price has not risen significantly in more than two years. At this time, the employee shareholding plan stock price can be risk-free arbitrage at a 50% exercise. Some investors also believe that Dong Mingzhu’s personal shareholding is as high as 30 million shares, which is too high in the employee shareholding plan. In addition, the Southern Metropolis reporter noted that on December 31, 2020, Gree Electric’s share price reached its highest point of 69.79 yuan. But after 2021, its stock price has fallen all the way to early 50 yuan, and the cumulative decline has been close to 30%. Written by: Southern Metropolis reporter Kong Xueshao
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