Youngor "Good" And "Bad" Together

After four months, Youngor is ready to buy back.

On the evening of September 20, Youngor announced that it planned to use its own funds of no more than 1.5 billion yuan to buy back shares at a price of no more than 7.50 yuan per share. The number of shares to be repurchased was 100 million to 200 million shares, accounting for about 2.16% - 4.32% of the company's total share capital before repurchase.

"Good" and "bad" together

Repo is often regarded as a good thing by the market, but Youngor also disclosed a announcement of reduction of shares held by Kunlun trust, a shareholder of Kunlun trust, to reduce some of the company's shares held by the account of "Kunlun trust Tianying investment No.1 collective fund trust plan" by centralized bidding and other laws and regulations for 15 trading days from the date of announcement By December 31, 2020, the number of shares to be reduced will not exceed 46.29 million, that is, no more than 1% of the total share capital of the company.

As soon as the announcement came out, it attracted investors' heated discussion, and Youngor's stock ranked quickly and quickly.

According to the latest data, the total price difference between the two shares is RMB 2.47 billion.

Talking about the purpose of the buyback, Youngor said that the share repurchase will be used to implement the company's equity incentive plan, so as to further improve the corporate governance structure, promote the company to establish and improve the incentive and restraint mechanism, ensure the realization of the company's long-term business objectives and enhance the overall value of the company.

The implementation time of Youngor's share repurchase is from September 18, 2020 to September 17, 2021.

This is not Youngor's first buyback, and the previous one was more aggressive.

From June 11, 2019 to May 19, 2020, Youngor repurchased 385 million shares of the company, accounting for 7.68% of the total share capital of the company. All the shares repurchased have been cancelled.

At that time, the upper limit of Youngor's repurchase plan was 5 billion yuan, and the upper price limit was 6.79 yuan per share. In fact, the company spent 2.501 billion yuan (including transaction costs) in this buyback, which was slightly higher than the lower limit of repurchase funds by 2.5 billion yuan. The highest repurchase price was 6.79 yuan per share, and the repurchase price was 6.11 yuan per share, with an average price of 6.49 yuan per share.

In the secondary market, during the last buyback period, Youngor's share price once soared to 7.31 yuan / share (the same below). During this period, * rose by about 20%.

It is worth noting that Kunlun trust has also reduced its holdings during the implementation of Youngor's repurchase. According to the announcement, from March 25 to September 20, 2020, it reduced its holding of 19480300 shares.

At present, the trust plan of Kunlun trust holds 550 million shares of Youngor, accounting for 11.89% of the total share capital of the company, which is the second largest shareholder of the company.

Youngor said that except Kunlun trust, the company has not received any reply from other shareholders holding more than 5% of their shares. Youngor stressed that the company's controlling shareholders and actual controllers will not have a reduction plan in the next three months or six months.

Youngor pointed out that there is a risk that the plan can not be implemented because the stock price continues to exceed the disclosure range of the plan, and that the plan may be changed or terminated according to the rules due to major changes in the company's production and operation, financial situation and external objective conditions.

The company is not short of money

Youngor bluntly said that the repurchase funds are all their own funds.

By the end of June, Youngor's monetary capital balance had reached 9.598 billion yuan, including 6.880 billion yuan in bank deposits and 2.552 billion yuan in trading financial assets, including 1.852 billion yuan in financial products.

According to the announcement, according to Youngor's financial data as of the end of June and the upper limit of the total amount of funds to be used for this buyback, the company's asset liability ratio will increase by 1.29 percentage points to 65.36% after the repurchase is cancelled, which remains in a reasonable range.

It is worth mentioning that Youngor recently obtained a large amount of capital by reducing some shares of Bank of Ningbo, further enriching the "Treasury" of the company. From September 8 to September 14, the company sold 46.8747 million shares of Bank of Ningbo with a transaction amount of 1.549 billion yuan and a net profit of 433 million yuan. As of September 14, the company still held 605 million shares of Ningbo bank, accounting for 10.06% of its total share capital.

After the reduction of Bank of Ningbo, how to use the funds has become a topic of concern to investors. In reply to investors' questions on September 17, the company's secretary stressed once again that, in addition to strategic investment and continuing to fulfill investment commitments, the company will no longer carry out financial equity investment in non main business areas, and will choose an opportunity to dispose of existing financial equity investment projects.

In fact, as a former "stock speculator", Youngor had made this statement at the end of April last year.

In fact, a few days ago, some investors suggested that Youngor buy back shares to protect the rights and interests of all shareholders. The company's secretary replied on September 17 that the proposal had been passed on to the company's management. Investors' dreams come true.

In the first half of this year, Youngor achieved a revenue of 6.958 billion yuan, a year-on-year increase of 51.83%, and a net profit of 2.876 billion yuan, a year-on-year increase of 41.88%. Among them, affected by the epidemic situation, the company's clothing sector achieved operating revenue of 2.629 billion yuan, and realized a net profit of 395 million yuan, down 16.72% and 39.03% respectively year-on-year.