On May 18, goubei.com, Hefeng shares (securities code: 603609) recently announced that the Company repurchased the company’s shares by means of centralized competitive trading, with the maximum repurchase amount of 300 million yuan and the maximum repurchase price of 17.7 yuan / share, and the repurchase period of no more than 12 months. All the shares repurchased this time will be used to implement the company’s employee stock ownership plan or equity incentive plan.
It is understood that the types of shares repurchased by the company are the domestic listed RMB common shares (A shares) issued by the company. According to the change of stock market price during the implementation of the repurchase plan, the company will implement the repurchase at a price not exceeding RMB 300 million (inclusive). Under the condition that the repurchase price is RMB 17.70 per share and the upper limit of repurchase amount is RMB 300 million, the number of shares to be repurchased is estimated to be about 16949153, accounting for 1.84% of the total share capital of the company; According to the minimum repurchase amount of RMB 200 million, the number of shares to be repurchased is expected to be about 11299435, accounting for about 1.23% of the total share capital of the company. The number of shares to be repurchased this time shall not exceed 10% of the total issued share capital of the company, and the specific number of shares to be repurchased shall be subject to the actual number of shares to be repurchased by the company upon the completion of the repurchase or the expiration of the repurchase implementation period.
For the purpose of this repurchase, based on firm confidence in the company’s future development prospects and high recognition of the company’s value, in order to further safeguard the interests of the majority of shareholders, improve the corporate governance structure, and continue to build a long-term incentive mechanism, the company takes into account the operating situation, business development prospects, financial situation and future profitability, It plans to buy back the company’s shares with its own funds and use all of them to implement the company’s employee stock ownership plan or equity incentive plan. If the company fails to use the repurchased shares within 36 months after the implementation of the share repurchase, the unused repurchased shares will be cancelled. If the state adjusts the relevant policies, the repurchase plan will be implemented according to the adjusted policies.
As of March 31, 2021, the total assets of the company is 12790487099.19 yuan, the net assets attributable to the shareholders of the listed company is 7037960890.61 yuan, and the asset liability ratio is 36.09%. According to the calculation that the upper limit of the total amount of the repurchase fund of RMB 300 million has been fully used, the repurchase fund accounts for about 2.35% of the total assets of the company and 4.26% of the net assets belonging to the shareholders of the listed company. The business development of the company is good, and the cash flow of operating activities is healthy. According to the company’s operation, finance, R & D and other conditions, the company believes that the total amount of share repurchase funds is not less than RMB 200 million (inclusive) and not more than RMB 300 million (inclusive), which will not have a significant impact on the company’s operation, profitability, finance, R & D and debt performance.
According to digbei.com, Hefeng’s main business includes feed and feed raw material trade, meat and poultry industrialization, pig breeding, animal medicine, breeding equipment, pet medical and other fields. In 2018, the company identified the food business as a strategic business and is now fully promoting it.