Nationwide First Batch! Jiangsu's First Case! Maiwei Takes the Lead Nationwide in Implementing Stock Buyback and Shareholder Increase Loans
On (date), Suzhou Mowell Technology Co., Ltd. issued a notice stating that it has signed a special loan agreement for share buyback with the Suzhou Branch of China CITIC Bank, and will repurchase the company's shares through centralized bidding transactions. This marks the first batch of listed companies nationwide and the first in Jiangsu to use loan funds for share buyback after the People's Bank of China created a special refinancing tool for stock buyback and增持.
On [date], the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued the "Notice on Matters Concerning the Establishment of Stock Buyback and Shareholder Increase Loans," officially launching the stock buyback and shareholder increase loans. From now on, national financial institutions can issue relevant loans to listed companies and major shareholders that meet the conditions, and apply for re-loans from the People's Bank of China in the first month of the next quarter. For loans that meet the requirements, the People's Bank of China will provide re-loan support at % of the loan principal. The initial quota for the re-loan is RMB 10 billion, with an interest rate of .%, a term of 1 year, and may be extended as needed.
On the date, two days after the announcement of stock buyback, share增持, and additional loans, the market saw the first batch of implementation cases. Multiple listed companies, including Sinopec, China Merchants Port, and Sinotrans, issued announcements disclosing the signing of credit agreements or receipt of loan commitment letters with financial institutions. The related loan funds will be used for stock buyback or share增持. The first batch of listed companies attempting to use buyback, share增持, and additional loans covers a wide range of sectors, including main board, Science and Technology Innovation Board (STAR Market), and Growth Enterprise Market (GEM); in terms of enterprise ownership, it includes central SOEs, local state-owned enterprises, and private enterprises. Among them is the presence of Mairui Co., Ltd.
Meyer Holdings was listed on the ChiNext Board of the Shenzhen Stock Exchange in [month and year], and is a high-end equipment manufacturer that integrates mechanical design, electrical development, software development, and precision manufacturing. The company focuses on the solar photovoltaic, display, and semiconductor industries, developing, manufacturing, and selling intelligent high-end equipment. In the announcement, Meyer Holdings stated that the total amount of funds intended for the share buyback will be no less than 100 million yuan (inclusive) and no more than 2 billion yuan (inclusive), with the price range for the repurchase not exceeding 500 yuan per share.
Meyer Holdings stated that, based on confidence in the company's future development and high recognition of its long-term value, to safeguard the company's value and shareholders' rights and interests, enhance public investors' recognition of the company's long-term value and investment confidence, and considering the company's stock price, business prospects, financial condition, etc., this buyback is being conducted to continue implementing the "Dual Improvement in Quality and Returns" action plan. The implementation of this share buyback is beneficial not only for maintaining the company's value and shareholders' rights and interests but also for enhancing investor confidence in the company.
Next, the Wujiang Development Zone will actively implement the decisions and deployments of the 20th CPC Central Committee's Third Plenary Session on "establishing a long-term mechanism to enhance the intrinsic stability of the capital market." Taking this opportunity, the zone will guide listed companies within its region to thoroughly study and effectively utilize policies, leveraging the strength of the capital market to boost market confidence and invigorate the "pool of economic vitality," injecting vitality into the high-quality development of the development zone's capital market.