Late March 29, 2021, kai the network publishing of 1% on the repurchase of shares and repurchase announcement of complete, said “as of March 29, 2021, the company through share buybacks special securities accounts by way of centralized competitive trading repurchase shares of 1% and complete the repo, the cumulative share buyback number 21947300 shares, accounting for 1.02% of the company’s total share capital, among them, the highest price of 4.81 yuan/share, the lowest price 4.25 yuan/share, clinch a deal the total amount is 99999057.92 yuan (not including transaction costs), The company’s share repurchase plan to complete the implementation. The shares repurchased this time will be used for the follow-up employee stock ownership plan and equity incentive plan.
This is not the company’s first buyback. According to public information, since 2016, Kaiying network backdoor listing, the company has issued 3 buyback plans in history. The first one planned to reach 200 million to 400 million yuan in 2018, but only completed 8.251 million yuan in the end, and was criticized by the exchange.
Second repurchase is February 4, 2020 to February 14, 2020, kai ying network through special securities accounts by way of centralized competitive trading stock repurchase, repurchase of shares in a company to buy back shares number 37762950 shares, accounting for 1.75% of the company’s total equity, among them, the highest price of 2.88 yuan/share, the lowest price 2.45 yuan/share, clinch a deal the total amount of RMB 99999886.14. The buyback, along with 1,930,000 unsold shares, has now been fully used to implement the stock incentive and employee stock ownership plans. Of this, 23,815,770 shares were allocated to the equity incentive plan; 15,877,180 shares were allocated to the employee stock ownership plan. The company has said that for the use of the buyback for employee shareholding and equity incentive, it can effectively combine the interests of shareholders, the interests of the company and the personal interests of the core team together, so that all parties can more closely promote the long-term development of the company. As a result, the share buyback at the beginning of 2020 was completed quickly at the lowest point in Kaiying’s history, and was used for employee stock ownership and option incentives in time. It is because of the rapid share buyback and the smooth follow-up disposal that the company faced multiple crises such as huge losses, non-performing assets stripping, shareholder disputes and repeated lawsuits, the share price of Kaiying Network continued to rise from 2.34 yuan/share before the buyback until it reached a peak of 7.49 yuan/share in August 2020, up 220.09% from the lowest value.
This announcement refers to the buyback plan is the third time in the history of Kay Ying network buyback. Relevant analysts believe, on the one hand, is the current stock market game industry is generally low, the company start the repurchase function to boost market confidence, on the other hand after share buybacks to implement equity incentive and employee stock ownership plan, is to attract and retain professional management personnel and core backbone, to ensure company’s development goals, to promote a stable company, trust has great positive significance to the company. (hercynian)