CCM: Chinese TiO2 enterprises release share incentive plans for long-term development 10-10-2016

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.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.


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