In 2015, Henan Billions and CNNC TD
released their share incentive plans in succession. This not only boosts the
share prices of the company in a short term, but also guarantees the common
interest for the company, shareholders and staff which will benefit the
company’s long-term development.
Source: Internet
On 27 Jan., 2015, Henan Billions Chemicals
Co., Ltd. (Henan Billions) released its share incentive plan. It awarded 15.10
million shares (7.91% of the total shares) to 763 employees at a price of
USD1.72 (RMB10.52) per share, half of the average price (USD3.44) of the 20
trading days before the release of the plan. Accordingly, the targets of the
incentive plan included board members of the company, senior executives, middle
managers, supervisors, core technicians and salesmen. The conditions for the
implementation of the plan is that the growth of net profit from 2015-2017 will
be no less than 45%, 60% and 75% respectively over the net profit of 2014.
On the same day, Henan Billions also
released a non-public offering plan of USD130.79 million (RMB800 million). On
that day, Henan Billions’ share price increased by 10%. As of 14 May, 2015, the
average share price of Henan Billions hit USD5.47 (RMB33.43) per share, soaring
by 95.84% year on year.
On 29 April, 2015, CNNC Hua Yuan Titanium
Dioxide Co., Ltd. (CNNC TD) also released its share incentive plan. CNNC TD
will award 205 employees 11.15 million shares (2.48% of the total shares) at a
price of USD1.58 (RMB9.67) per share, 53.90% of the average price (USD2.93) of
the 20 trading days before the release of the plan. Accordingly, the targets of
the incentive plan are board members of the company, senior executives, middle
managers and core technicians and salesmen. Specifically, 10.15 million shares
will be given out at first. The conditions for the implementation of the plan
is that the growth of net profit from 2015 to 2017 will be no less than 40%,
60% and 80% respectively over the average net profit in 2012-2014 .
As of 14 May, 2015, the average share price
of CNNC TD hit USD3.47 (RMB21.20) per share, soaring by 192.82% year on year.
Benefits brought by share incentive plans
to Henan Billions and CNNC TD:
1. It can boost the stock price of the
company in a short term;
2. It helps to build and complete the
company’s interest share system in order to guarantee the common interest for
the company, shareholders and staff and then push them to focus on the
long-term development of the company;
3. It will complete the company’s long-term
and efficient incentive system which can attract and keep outstanding
executives and core technicians and improve the enthusiasm and cohesion of the
staff.
Henan Billions and CNNC TD have gained the
fastest development among Chinese TiO2 enterprises since 2013. In recent years,
they have expanded their business in high efficiency and also gained excellent
performance in revenue and profits (CCM gave a special report on their
performance in the issue of 201504). This time, according to CCM, their share
incentive plans fully revealed their determination to focus on long-term
development.
About CCM:
CCM is the leading market intelligence provider for China’s
agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a
range of data and content solutions, from price and trade data to industry
newsletters and customized market research reports. Our clients include Monsanto,
DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
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