Sany Group practices the "Great Non-Business Principles" and deduces the most beautiful scene

Securities Daily, June 19, 2008Trading! Sany Heavy Industry, the first fully tradable stock, performed an almost beautiful scene on the *5658 trading day after its full circulation.

Between the game of shareholding reduction and sales restriction, Sany Group, the major shareholder of Sany Heavy Industry, has practiced the business of being a "big non-shareholder" of a listed company through its own "voluntary lock-in + price limit reduction". The lifting of the ban may still be turbulent in the future, but the market has found a beacon and seen hope in the commitment of Sany Group.

"Big Non-Business Road"

Some people in the financial circles once recommended the Korean drama "Shangdao" and my country's local TV series "Da Dyeing Fang" to the Securities Daily reporter. The plots of the two plays have their own ups and downs, but the similarities are about the business ethics (business ethics and Taoism) that courageous business entrepreneurs follow even in the face of tough competition. It is worth mentioning that, in a sense, it is precisely the observance of business principles that has promoted the real leapfrog development of the above-mentioned commercial enterprises.

Facts have proved that Sany Group is also bold and knowledgeable.

According to yesterday's announcement, Sany Group promised to lift the ban on 518126188 shares of Sany Heavy Industry listed and circulated on June 17, 2008, and voluntarily continued to lock up for two years from June 19, 2008; At the same time, within two years from June 17, 2008, if the secondary market price of Sany Heavy Industry shares is less than twice the closing price on June 16, 2008 (i.e., 55.76 yuan per share), Sany Group promises not to reduce its holdings of Sany Heavy Industry shares through the secondary market. ”

Sany Heavy Industry's choice reminds the market that SynTao has the right to reduce its holdings and should also insist on the size of the capital market that has been lifted and will be lifted.

The right to circulate is the legal right of the shares to be lifted after the share reform, but the right is not an obligation that must be performed, and the lifting of the ban is not equivalent to the reduction of holdings. In the face of the tight capital situation, irrational continuous decline, and panic entanglement ...... the secondary market, it is necessary for large and small non-governmental organizations to consider persistence: adhere to their own value judgments, adhere to their responsibilities as shareholders and social responsibilities.

For the persistence revealed in Sany Heavy Industry's commitment, the secondary market is also giving returns from the heart: Yesterday's Sany Heavy Industry limit is only part of the return. According to the closing price of 19.68 yuan on the next trading day before the suspension of the share reform vote, and the total share capital of 240 million at that time, the total market value of Sany Heavy Industry is only 4.7 billion yuan. Today, three years later, Sany Heavy Industry's total share capital has expanded by 4 times to 992 million shares, and the total market value is as high as 67.5 billion yuan at its *5661 price of 68.00 yuan, which is 14 times that before the share reform. Although Sany Group chose to temporarily lose part of the stock circulation rights this time, it also regained market confidence and enhanced the market image of Sany Heavy Industry, and the current market value and future valuation of Sany Group are expected to increase significantly.

Whether the Trinity model can be reproduced

Industry users pointed out that at the beginning of the equity division reform in 2005, Sany Heavy Industry successfully implemented the "Sany model" of sending shares for circulation rights, and although the voluntary lock-in of Sany Heavy Industry is a case, it does not rule out the possibility of being imitated and even improved by latecomers. Perhaps in the near future, "voluntary lock-in" will also be able to be awarded the reputation of "Trinity Model" by the market.

Tianxiang investment industry analysts also pointed out that Sany Heavy Work is the whole market * 5656 fully circulating listed companies, and it took the lead in making a lock-in commitment to greatly enhance the company's image in the hearts of investors, and its commitment has made an exemplary role for subsequent companies (especially private enterprise listed companies).

In fact, although Sany Heavy Industry is a private enterprise, its voluntary lock-in of circulation rights also reminds state-controlled listed companies. Compared with private enterprises, state-controlled enterprises are additionally responsible for maintaining and increasing the value of state-owned assets, and state-owned shares should fully consider whether the equity is undervalued and the overall bearing capacity of the market when obtaining the right to circulate.

In addition, Sany Heavy Industry also really reminded the market that the lifting of the ban is not the same as reducing holdings, and there is no need to panic excessively about the size of the non-lifting of the ban, but should distinguish the macroeconomic situation, the quality of the listed company, and the willingness of the shareholders of the listed company to reduce their holdings before making their own rational decisions.

From the share reform of *5,656 shares to the full circulation of *5,656 shares and then to the voluntary lock-up of *5,656 shares after full circulation, Sany has practiced the business Tao. The market expects that the big and small non-citizens who are about to usher in the lifting of the ban can make equally prudent decisions and truly achieve a win-win situation between corporate interests and social responsibility.