Following the announcement of the US $1 billion buyback plan at the end of November last year, Meituan (03690. HK) launched another US $2 billion buyback plan.
On the evening of June 11, Meituan announced that the Board of Directors had decided to buy back Class B ordinary shares of the Company with a total amount of no more than US $2 billion in the open market from time to time according to the share repurchase authorization passed at the general meeting of shareholders on June 30, 2023. The company will buy back in accordance with relevant rules.
Meituan said that the company believes that share repurchase can show that the company is confident in its own business development and prospects, and will eventually bring benefits to the company and create value for shareholders. The Board of Directors of Meituan believes that the Company's existing financial resources are sufficient to support share repurchases while maintaining a sound financial position.
At the end of November 2023, Meituan's share price continued to fall. Meituan announced in the morning of November 29 that from December 1, 2023, it would buy back the company's shares in the open market from time to time with a total amount of no more than $1 billion. The board of directors of Meituan also said that the share repurchase can show that the company is confident in its business outlook and prospects, and the company's existing financial resources are sufficient to support the share repurchase while maintaining a stable financial situation.
After the disclosure of the plan, Meituan announced on the evening of January 10 this year that the company repurchased 5.63 million Class B shares that day, costing about HK $399 million. Based on this calculation, the average price of Meituan's share buyback is HK $71.07 per share, which is the first share buyback of Meituan since its listing.
From the perspective of trend, Meituan's share price rebounded significantly after hitting a new stage low on February 5 this year, and has risen by more than 77% so far, with the largest increase in the range of more than 90%. At present, Meituan's market value in Hong Kong stock market exceeds HK $710 billion.
Meituan currently has sufficient funds in hand. The company's financial report for the first quarter of 2024 released on June 6 showed that by the end of the quarter, its cash and cash equivalents, short-term financial investment were 50.8 billion yuan and 87.8 billion yuan respectively.
In the past two years, Hong Kong stock technology Internet companies have launched large-scale repurchase plans. The reporter of Securities Times · e Company noticed that since last year, Internet technology companies including Meituan, Xiaomi, Jingdong, Fasthand, etc. have announced the latest repurchase plan.
As announced by JD Group on the evening of March 6, the company's board of directors has approved a new share repurchase plan, which will take effect after the expiration of the company's existing share repurchase plan on March 17, 2024. According to the new share repurchase plan, the company can repurchase shares with a value of no more than $3 billion within the next 36 months as of March 2027.
On May 22, Fasthand officially announced the launch of a new round of stock repurchase plan after releasing the first quarter results of 2024. It plans to buy back shares with a total amount of no more than HK $16 billion in the next three years after the 2024 General Meeting. The HK $4 billion repurchase plan launched by Fasthand in May last year will expire at the shareholders' meeting in June this year. Before the disclosure of the new round of repurchase plan, the company has repurchased Class B shares worth HK $3.09 billion.
On the evening of March 22, Xiaomi Group released the announcement of share repurchase plan at the same time as the financial report. Xiaomi Group said that the board of directors had formally decided to exercise the share repurchase authorization to buy back shares in the open market at a maximum amount of HK $10 billion from time to time. The announcement on the evening of March 24 showed that Xiaomi Group repurchased 3409400 shares at the price of HK $14.44 to HK $14.5 per share, costing nearly HK $50 million.
Before Xiaomi, Alibaba also announced that the upper limit of stock repurchase scale was raised to 25 billion US dollars (equivalent to nearly 160 billion yuan).
Editor in charge: Peng Bo
Checked by: Wang Jincheng
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