Jiaxin Silk (002404): Will Not Spend More Than 100 Million Yuan To Buy Back Some Of The Public Stock For Equity Incentive.

On June 30th, Jiaxin silk (002404) recently announced that the Company repurchased part of the public stock by way of centralized bidding, the amount of repurchase amount was 100 million yuan, and the repurchase price limit was 7.5 yuan / share, and the repurchase period did not exceed 12 months. The share repurchase will be used for stock rights incentive or employee stock ownership plan.

It is understood that the company issued RMB common stock (A share) shares. According to the total repurchase limit of 100 million yuan and the upper limit of repurchase price of 7.5 yuan / share, it is estimated that the repurchase stock is about 13 million 333 thousand and 300 shares, accounting for 2.31% of the total issued capital stock of the company. According to the total amount of repurchase funds lower than 50 million yuan and the upper limit of repurchase price of 7.5 yuan / share, it is estimated that the repurchase share is about 6 million 666 thousand and 700 shares, accounting for 1.15% of the total issued capital stock of the company. The number of specific repurchase shares and the proportion of the total share capital of the company will ultimately be determined by the number of shares actually repurchased and the proportion of the total share capital of the company when the buyback expires.

For the purpose of this repurchase, Jiaxin silk, based on its confidence in the company's future development prospects and its recognition of the company's value, will further improve the long-term incentive mechanism of the company, fully mobilize the enthusiasm of the company's core backbone and excellent staff and jointly promote the long-term development of the company. On the basis of considering the business prospects, operating conditions, financial status, future profitability and the recent performance of the company's stock in the two tier market, the company intends to repurchase some of its public stock with its own funds for equity incentive or ESOP.

As of March 31, 2019, the total assets of the company amounted to 3002318215.77 yuan, the net assets attributable to shareholders of listed companies were 1811301809.30 yuan, and current assets were 2061765610.04 yuan. In 2019 1-3, the net profit attributable to shareholders of listed companies was 40262698.58 yuan. If the upper limit of the total amount of the repurchase fund is 100 million yuan RMB, the proportion of the repurchase fund will account for 3.33% of the total assets of the company, accounting for 5.52% of the total net assets attributable to the listed shareholders and the proportion of the current assets accounted for 4.85% (the above financial data are not audited) according to the financial data in March 31, 2019. According to the company's operation, finance and future development, the company believes that the repurchase will not have a significant impact on the company's business, profitability, financial, R & D, debt performance and future development. The company has sufficient funds and capacity to pay the share repurchase price.

According to the data, Jiaxin silk is one of the largest silk production and marketing enterprises in China. It has a complete industrial chain from cocoon drying to cocoon weaving, printing and dyeing, garment manufacturing, and domestic and foreign trade.