After the market on March 6th, BYD released a plan to repurchase the company's shares in 2024, with a planned repurchase amount of 400 million yuan and a repurchase price not exceeding 270 yuan per share. The repurchase of shares will be used for cancellation to reduce registered capital.
As of the close on March 6th, the stock price of BYD (002594. SZ) closed at 191.65 yuan per share, an increase of 0.43%, with a market value of 557.92 billion yuan.
According to BYD's announcement, the repurchase period shall not exceed 12 months from the date of approval of the repurchase plan by the company's shareholders meeting. The source of funds is the company's own funds. Under the condition that the repurchase price of the shares does not exceed 270 yuan/share, calculated based on the repurchase amount of 400 million yuan, it is expected that the number of repurchased shares will not be less than approximately 1.4815 million shares, accounting for approximately 0.05% of the company's current issued total share capital. The specific number of repurchased shares will be based on the actual number of shares repurchased at the expiration of the repurchase period.
BYD Announcement
According to BYD's announcement, the purpose of repurchasing shares is mainly based on confidence in the prospects of the new energy industry and the future development of the company under the national "dual carbon" goals, as well as recognition of the company's value. In order to maintain the interests of all shareholders, enhance investor confidence, stabilize and enhance the company's value, the company plans to implement repurchasing shares for cancellation to reduce registered capital. This share repurchase fully considers the company's operations, finance, research and development, debt repayment ability, and future development. The company's management believes that this share repurchase will not have a significant adverse impact on the company's operations, finance, research and development, debt repayment ability, and future development.
As of September 30, 2023, the company's unaudited total assets were approximately RMB 623.28 billion, monetary funds were approximately RMB 55.76 billion, and net assets attributable to shareholders of the listed company were approximately RMB 129.86 billion. According to unaudited financial data as of September 30, 2023, the repurchase fund of 400 million yuan accounts for approximately 0.064% of the company's total assets and 0.308% of the company's net assets attributable to shareholders of the listed company. The company has sufficient self owned funds to pay for this share repurchase.
According to a retrospective announcement, BYD disclosed a suggestive announcement on the evening of February 25th regarding the Chairman's proposal to increase the amount of shares repurchased by the company. The announcement showed that on February 22nd, the company received a letter from the actual controller, Chairman and President of the company, Wang Chuanfu, regarding the proposal to increase the amount of A-shares repurchased by BYD Co., Ltd, On December 6, 2023, Wang Chuanfu proposed that the company repurchase a portion of the company's A-shares through a centralized bidding transaction, with a total amount of 200 million yuan. Based on confidence in the prospects of the new energy industry and the company's future development under the national "dual carbon" goals, as well as recognition of the company's value, in order to better safeguard the interests of all shareholders, enhance investor confidence, and stabilize and enhance the company's value, Wang Chuanfu proposed to increase the repurchase amount from 200 million yuan to 400 million yuan and use it to reduce registered capital.
According to the February 2024 production and sales report disclosed by BYD, the production of new energy vehicles by BYD in February 2024 was 110474 units, compared to 203172 units in the same period last year; The sales volume in February was 122311 units, compared to 193655 units in the same period last year. The cumulative production this year is 316062 vehicles, a year-on-year decrease of 11.56%; The cumulative sales this year were 323804 units, a year-on-year decrease of 6.14%.
JD has also taken action.
On March 6th, JD Group (HK9618, stock price of HKD 89.2, market value of HKD 283.63 billion) released its Q4 and full year performance for 2023. In the fourth quarter, the revenue reached 306.1 billion yuan, a year-on-year increase of 3.6%; The annual revenue was 1084.7 billion yuan, a year-on-year increase of 3.7%.
JD Group announced simultaneously that its board of directors has approved annual cash dividends, with a total dividend amount of approximately $1.2 billion, exceeding the $1 billion in 2023. The board of directors of JD Group has also approved a new share repurchase plan, which, after the existing share repurchase plan expires and takes effect, can repurchase shares worth no more than $3 billion (approximately RMB 21.6 billion) within the next 36 months up to March 2027.
JD Group Announcement
The details of JD's share repurchase plan have not been disclosed, including the specific schedule and price of the repurchase. But the company stated that it will execute buybacks based on market conditions and the company's capital structure needs. This indicates that JD.com will flexibly manage its capital and seek to maximize shareholder value.
Before the Spring Festival, JD.com announced that it would increase salaries for frontline employees such as JD.com Procurement and Sales, JD.com Customer Service, etc., and released corresponding salary increase rules and specific increase ratios. After the holiday, the year-end bonus for JD Retail Boss unit has been received.
On March 1st, a reporter from the Daily Economic News learned from an insider at JD.com that JD.com announced the distribution of the year-end bonus for the JD Retail Boss unit on its intranet today.
JD Retail Announcement
The announcement shows that in response to JD's procurement and sales, JD has significantly increased its investment in year-end bonuses, with a year-on-year increase of 72%. Among them, 16 business groups received a total bonus of over 20 times their monthly salary, and the highest business group received a bonus of over 50 times their monthly salary.
In addition, the reporter learned that among the JD sales team that received the excess year-end bonus this time, some people directly received over a million yuan in year-end bonuses, and there were also recent graduates born in the 2000s who started working last year who directly received nearly 20 times their monthly salary in year-end bonuses.
On February 29th, it was reported that JD Logistics has recently launched its "Recruitment Plan for Ten Thousand People". In the first half of 2024, it will attract about 20000 new employees, focusing on supply chain, operations, management, sales, and other areas. Through recruitment projects such as "Boss Recruitment Order" and "Youth Cadre Team", it will focus on introducing grassroots managers, reserve management talents, frontline operators and other positions, aiming to further enhance the professionalism of JD Logistics talents.
According to the introduction, under the assessment guidance of "more work, more pay, and every improvement is incentivized and not capped", in 2023, the highest multiple of year-end bonuses for frontline boss positions will reach 23 times, and the average salary of frontline employees in multiple teams will double. With the continuous development of business, many positions such as supply chain sales positions and intelligent warehouse administrators have been released to the outside world.
JD Blackboard Report
According to JD Blackboard News, on February 5th, JD Group announced that starting from February 1st, 2024, over 20000 JD frontline customer service employees will achieve an average annual salary increase of over 30%.
JD Blackboard Report
JD stated that JD customer service was established in 2009 and has now developed into the largest self operated customer service team in the industry. In addition to paying the "five insurances and one fund" for all employees, JD.com has established a multi-dimensional welfare care and talent development mechanism.
It is worth noting that according to a previous report by Meijing.com, a reporter from the Daily Economic News learned from JD.com that starting from January 1, 2024, all online business colleagues at JD.com will have their original monthly performance-based salary and floating year-end bonus added to their fixed salary, enjoying a fixed year-end bonus of four times their monthly salary. After the adjustment, the annual fixed salary will increase by nearly 100%.
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