Jiang Peng, secretary of midea's group, plans to reduce its holdings, and exclusively responds that it is "to return the right to borrow"

Source: CBN

Midea Group (000333. SZ) announced on the evening of May 30 that Jiang Peng, the secretary of the company's board of directors, plans to reduce his holding of no more than 25% of the total number of shares in the company, that is, 153,000 shares, within 6 months by means of a centralized auction.

On the morning of May 31, Jiang Peng said in an interview with the first financial reporter that this is mainly to return the loan of exercise funds, which is a routine operation. The announcement also said that the reason for Jiang Peng's reduction of holdings was: "to repay external financing loans such as individuals due to equity incentive exercises". As of yesterday, Jiang Peng held 611,300 shares of Midea Group, which is "equity incentive exercise income".

The last time Midea Group's major shareholders reduced their holdings was in May two years ago. On May 15, 2017, Midea Group announced at that time that He Xiangjian reduced his holding of 32.3284 million shares of Midea Group through a block transaction on May 12, accounting for 0.5% of the total share capital, and the average price of the reduction was 34.68 yuan per share, and the cash amount exceeded 1.12 billion yuan. Looking at the bulk transaction records, He Xiangjian's reduction was sold by the Foshan Jihua 5th Road Business Department of China Merchants Securities, divided into 13 transactions, of which the maximum number of single transactions was 7.5 million shares, which was taken over by institutional seats.

Regarding the recent repurchase, at the shareholders' meeting on May 13, 2019, Jiang Peng said that the shares repurchased by Midea Group last year were basically cancelled, and the proportion of dividends was not reduced after the repurchase, if the repurchase amount is included, the dividend and repurchase amount together account for more than 60% of the net profit. In the market large-scale fluctuations, resulting in the stock price does not reflect the value, will be considered for continuous repurchase; the current incentives made by senior executives also come from repurchases, and equity incentives will not expand the total share capital.