What happened to the LED market? Major LED listed companies set off a wave of buybacks

The China Securities Regulatory Commission issued a notice on earnestly studying and implementing the 'Decision of the Standing Committee of the National People's Congress on Amending the Company Law of the People's Republic of China'. The notice requires that listed companies that are willing to repurchase shares should comprehensively review the company's articles of association and internal management systems. In the content related to share repurchase, it clearly stipulates the repurchase situation that can be implemented by the decision of the board of directors, improves the relevant mechanisms such as the holding, transfer and cancellation of repurchased shares, and improves the inside information management system for repurchased shares.

Subsequently, the Shanghai Stock Exchange issued the 'Detailed Rules for the Repurchase of Shares by Listed Companies on the Shanghai Stock Exchange (Draft for Comment)'. The 'Repurchase Rules' clarifies that the share repurchase necessary for a listed company to maintain the company's value and shareholders' rights and interests can be sold through centralized bidding after holding it for half a year and performing necessary decision-making procedures. This arrangement is mainly to provide a more flexible market-oriented means for listed companies to balance the capital needs of share repurchase and daily operations.

The 'Repurchase Rules' issued by the Shenzhen Stock Exchange mainly include the following aspects: firstly, to broaden the applicable circumstances of share repurchase, clarifying the repurchase requirements for situations 'necessary to maintain the value of listed companies and shareholders' rights and interests'; secondly, to simplify the review of repurchase in specific situations. Procedures to standardize the proposed procedure for share repurchase; thirdly, to refine the requirements for information disclosure and plan change of repurchased shares, and require the company to reasonably arrange the number of shares to be repurchased daily; fourthly, to clarify the source of funds for repurchase, and to pay cash for share repurchase as the same Cash dividends; Fifth, clarify the requirements and restrictions on share repurchase reduction.

Market participants believe that with the substantial optimization of the system, the number and amount of stock repurchases of A-share listed companies are expected to further increase in the future, and the market needs to actively pay attention to the upcoming wave of repurchases.

On December 17, Leyard's board of directors reviewed and approved the 'Proposal on the Repurchase of the Company's Shares', and the proposed repurchase of the company's shares does not exceed 300 million yuan. The price of the shares repurchased this time shall not exceed 10 yuan per share (inclusive), and the total amount of funds for repurchasing shares shall not be less than 150 million yuan (inclusive) and not more than 300 million yuan (inclusive). not more than 12 months from the date.

On December 16, Zhaochi Co., Ltd. announced that the company will repurchase the company's shares through centralized bidding transactions. The repurchase amount is capped at 400 million yuan, and the repurchase price is capped at 2.5 yuan per share. The repurchase period does not exceed 12 months.

On December 10, Signify announced that the company had completed its share repurchase program, which was designed to reduce the company's capital. According to the plan, Signify repurchased a total of 9,655.762 shares during the period from July 30 to December 7, 2018, at a cost of 220 million euros (about 1.716 billion yuan). Among them, from December 3 to December 7, 2018, Signify repurchased 632,084 shares at an average price of 21.82 euros per share, with a total amount of 13.8 million euros.

On December 4, Sanan Optoelectronics announced that as of the announcement date, Sanan Optoelectronics had repurchased 23.2578 million shares through centralized bidding transactions, accounting for 0.57% of the company's total share capital. The highest transaction price was 14.81 yuan per share, the lowest The price is 13.45 yuan per share, and the total payment amount is 332 million yuan.

On December 4, Inventronics announced that the company will repurchase the company's shares in a centralized bidding transaction with its own funds of not less than 50 million yuan and not more than 100 million yuan, and the price of the repurchase shares. No more than RMB 16.00 per share, and the repurchase period is 6 months from the date when the company's general meeting of shareholders considers and approves the share repurchase plan.

On December 10, NVC Lighting repurchased 1.082 million shares on the Hong Kong Stock Exchange at a cost of HKD 588,510. The average repurchase price was HKD 0.5439, the highest repurchase price was HKD 0.5500, and the lowest repurchase price was HKD 0.5300. The announcement shows that NVC Lighting has repurchased 2.961 million shares so far this year (since the ordinary resolution was passed), accounting for 0.083% of the issued share capital when the ordinary resolution was passed.

On April 17, Hongli Zhihui planned to repurchase shares through centralized bidding transactions. The price of the company's share repurchase this time is not more than RMB 14 per share. The total amount of funds to be repurchased shall be no less than RMB 50 million and no more than RMB 100 million. It is estimated that the repurchased shares shall not exceed 7.15 million shares, accounting for no more than 1.00% of the company's total share capital.

Regarding the repurchase of shares, Leyard said that based on the current sluggish stock price of the company, which cannot reasonably reflect the company's value, in order to effectively protect the legitimate rights and interests of all shareholders and promote the reasonable return of the company's stock value.

Sanan Optoelectronics is mainly based on its confidence in the company's current stock price performance and future development. As a leading enterprise in the LED industry, Sanan will widen the gap between the second-tier enterprises with the improvement of LED chip production capacity and efficiency. In addition, Sanan's compound semiconductor project will continue to progress, and it has performed well in various perspectives such as market expansion and production capacity. The company's supervisors and senior executives participated in increasing the company's stock holdings to demonstrate their confidence in the stock price.

The repurchase of Zhaochi shares will be used for, but not limited to, follow-up employee stock ownership plans or equity incentive plans, conversion of corporate bonds issued by listed companies that can be converted into stocks, or necessary for maintaining company value and shareholders’ rights and other laws and regulations. of other situations.

In 2018, due to the combined influence of market factors and other factors, the stock market continued to slump. The editor of OFweek Semiconductor Lighting Network believes that the repurchase trend of listed companies this year is mainly due to the fact that many LED listed companies believe that their valuations are lower than expected, and repurchase and increase in holdings are more effective means of 'protecting the market'. LED listing The popularity of the company's repurchase has quietly increased, indicating that the listed company has confidence in its own future development, and the repurchase is more conducive to protecting the legitimate rights and interests of all shareholders, especially small and medium shareholders. From the perspective of long-term market construction, the 'new repurchase regulations' will help LED listed companies have more initiative to carry out market value management.

For most LED listed companies, the repurchased shares are used as employee stock ownership plans, equity incentive plans, etc. The editor of OFweek Semiconductor Lighting Network believes that the repurchase of shares to the company's executives and key personnel will improve the initiative and enthusiasm of employees, effectively combine the interests of shareholders, the company's interests and the personal interests of employees, and increase the company's competition. power and profitability, and jointly promote the long-term development of the company.