Haining Leather City Good Frequency 6 Executives High Cash In Excess Of Half Billion

Listing for one and a half years,

As a small and medium-sized board enterprise listed at the beginning of last year, such performance and stock price performance are perfect.

However, 6 executives in Haining leather city are still in the dark when they can't wait to reduce their holdings.

According to the statistics of integrity archives of Shenzhen Stock Exchange, from January 27th to May 20th this year, a total of 6 executives in Haining city have reduced their holdings, with a total reduction of 1 million 91 thousand and 200 shares and a cash dividend of about 54 million 290 thousand yuan.

Among them, chairman of the board of directors has a law, it is a reduction of 400 thousand shares, about 19 million 920 thousand yuan.

For the reasons for the intensive reduction of executives, Yang's staff member of Haining Leather City Securities Department said in June 8th: "executive reduction is personal capital needs, and some are for personal debt repayment, which has nothing to do with the company's business."

Increase in performance

Haining Leather City, which was listed in January 26, 2010, is mainly engaged in the sales and leasing of market shops and supporting properties of "Haining China Leather City". It is the largest leather professional market integrating commerce, finance and information services. It is the largest luggage trading area in East China.

The controlling shareholder of the company is Haining asset management company, holding 37.94%, and the actual control is the Haining Municipal Finance Bureau.

Unlike most commercial real estate companies, the mode of operation in Haining is designated as "initial investment and leasing, followed by business leasing".

The shops are sold as high quality leather producers and a second-line brand merchants. The purpose of the sale is not only to recover cash flow, but also to form stable cooperative relations with quality merchants and attract more two or three line brands.

Wang Fenghua, a Hongyuan securities analyst who conducted field research at the company, said that the core competitiveness of the company lies in its ability to control the resources of the shops.

Over the past 10 years, the company has established good cooperative relations with local enterprises and private bosses.

"Haining is one of the main producing areas of Chinese fur, and the operators of leather garments are mainly small and medium sized enterprises, except those who grow up to be giants. They need to rely on a market to survive and develop, and Haining leather city has provided the development stage for these enterprises."

In 2010, the first financial year after the listing, Haining leather city achieved operating income of 1 billion 20 million yuan, an increase of 82% over the same period last year, and realized a net profit of 251 million yuan, an increase of 158% over the same period last year.

Haining leather city said that a large increase in operating revenue was due to a surge in business revenues such as sales and leases in the company's shops and ancillary properties.

In the first quarter of this year, the performance was more eye-catching: the operating income was 294 million yuan, up 177.69% over the same period last year, and net profit was 71 million 240 thousand yuan, up 698.89% over the same period last year.

The company expects net profit growth in the first half of this year to be 50%~80% compared with the same period last year.

The performance is also fully reflected in the stock price.

After the initial price of 19.66 yuan was launched in 2010, Haining's leather city started to rise unilaterally from the beginning of February to the highest price of 66.11 yuan in November 2010, 24.

That is to say, compared with the issuing price of 20 yuan, the share price rose by 231% in 10 months.

6 executives cash 54 million yuan

Stimulated by the surge in performance and the surge in share prices, Haining Leather City executives began to frequently reduce their stake in Haining's leather city.

From January 27th to May 20th this year, a total of 6 executives accumulated 1 million 91 thousand and 200 shares of Haining leather city and cash in about 54 million 290 thousand yuan.

In January 20th of this year, Haining Leather City announced that the company will lift 17 million 222 thousand and 100 shares of restricted shares in January 26, 2011, accounting for 6.15% of the total share capital of the company, and the number of shareholders who limit the sale of the shares is 27, including most of the company executives.

In January 27th, the official sale of shares was officially lifted for second days. Zhang Weiqiang, the company's supervisor, reduced 5000 shares by 47.02 yuan, and 235 thousand yuan in cash.

Although the reduction of the amount is relatively small, it has opened the prelude to Haining's Leather City executives' cash holdings.

Since then, Zhang Weiqiang has again reduced 6 times, accumulative reduction of 145 thousand shares of Haining Leather City, and cash in 7 million 170 thousand yuan.

Qian Juanping, the vice president and deputy general manager of the company, was the 6 executive to reduce 112 thousand and 200 shares of Haining leather city from January 28th to May, and a total of 5 million 620 thousand yuan was sold for 20 times.

During this period, the stock price of Haining's leather city was higher, the average reduction price of Qian Juanping's 6 times was also higher than once, the lowest paction price was 48.14 yuan, and the highest price rose to 52 yuan.

Yin Xiaohong, the director and deputy general manager of the company, also reduced the 30 thousand shares of Haining leather city twice in February 11th and May 5. As the reduction price was relatively high, it was close to 49 yuan, but the amount of reduction was not large, but the amount of cash was 1 million 470 thousand yuan.

Ling Jinsong, another supervisor, also reduced two shares in 150 thousand shares and nearly 7 million 440 thousand yuan in cash.

In the two days of May 19th and May 20th, the chairman of the company had both law and Li Zongrong.

In May 20th, he sold 400 thousand shares of Haining leather city at the average selling price of 49.81 yuan, accounting for 0.14% of the total share capital of the company and 19 million 920 thousand yuan at a time.

Li Zongrong, deputy general manager and director general, sold two shares of Haining Leather City in the past 254 thousand days and cash in 12 million 670 thousand yuan.

It is worth noting that the top six executives sold the leather market in Haining before May 20th, while the 5 executives, including the chairman of the board, had chosen to reduce their holdings in May 20th. The highest price in the day was 52.48 yuan, which is the most recent price in Haining's leather city. Since then, Haining's share price has not broken through the price.

Good times before cash offer.

In Haining Leather City 6 executives cut from January 27th to May 20th, Haining leather city stock price rose 18%, while the Shanghai Composite Index rose only 6.7% during the same period.

Behind the sharp rise in share prices is the frequent benefits of the company, which seems to reduce escort for senior executives.

As early as March 17th, Haining Leather City announced that it had won 138 million yuan for a plot of Haining, with an area of 41 thousand and 700 square meters.

The company said the plot will be used for the five phase of leather city construction, while the five phase will be the focus of the company's future performance.

Haining Leather City subsequently issued a notice on outward investment, to develop and build the five phase of Haining Leather City in Haining.

The company said that the total investment of the five phase project is about 660 million yuan, and it plans to use the company's first capital raising fund.

The construction period is about 24 months, covering a total area of 56 thousand and 900 square meters. The construction includes commercial and hotel apartments, and commercial housing is intended to be a brand leather living hall.

Haining leather city said that the company decided to develop and build the five phase project of Haining Leather City in China. The main purpose of the project is to further enhance the carrying capacity of the leather market in Haining, alleviate the current situation of "one shop hard to find" in Haining Leather City, guide the leather enterprises to take the product serialization Road, promote the leather industry upgrading in the form of brand life hall, and attract more well-known leather enterprises to enter Haining, so as to ensure the implementation of the strategy of epitaxial development in the company.

In May 10th, the company announced another good announcement that it invested 50 million yuan to take 15 thousand square meters of land in the urban area of Haining.

This is the second time that the company took 42 thousand square meters of land in March and then took it again in the urban area of Haining. The plot is also used for the five phase project of leather city.

The announcement again describes the five phase of the project.

During the period, the company also released its outstanding annual report in 2010 and a quarterly report in 2011. Before the annual report and the Quarterly Bulletin, the company released the 2010 performance bulletin and the first quarter earnings announcement in February 26, 2011 and April 19th respectively in April 27th.

In May 6th, in the 2010 annual online performance briefing session, the chairman of the company pointed out that the leather city of Haining, Chengdu is in the process of preparation, and plans to be put into use next month in 9~10.

It was this series of positive effects that brought the company's share price up and down until the executives' collective reduction in May 20th.