The share price plummeted, and the chairman of Haitian Flavor Industry proposed a large buyback

On October 16, "Soy Sauce Mao" Haitian Flavor Industry (603288) plunged nearly 8%, its share price hit a new low in recent four years, and its total market value also fell below 200 billion yuan. The chairman of the company could not sit still when the share price fell sharply. On the evening of October 16, Haitian Flavor Industry announced that its chairman Pang Kang proposed that the company buy back its shares with 500 million to 800 million yuan. Whether this measure can boost the company's share price remains to be verified over time.

On October 16, the trading market showed that Haitian Flavor Industry opened 0.05% lower at an opening price of 38.9 yuan per share. After the opening, the company's share price fell rapidly, and the final closing price was 35.85 yuan per share, down 7.89%. Its total market value was 19.3 billion yuan, down to below 200 billion yuan.

Compared with the previous trading day, the transaction amount of Haitian Flavor Industry was significantly increased on October 16. Orient Wealth showed that on October 16, Haitian Flavor had a turnover of 1.754 billion yuan, with a turnover rate of 0.87%. From October 12 to 13, the turnover of Haitian Flavor Industry was 635 million yuan and 594 million yuan respectively.

It is worth mentioning that the lowest price of Haitian Flavor reached 35.8 yuan/share, which is the lowest price since March 28, 2019 in the form of post reversion.

In addition, on October 16, Haitian Flavor Industry was listed as a dragon and tiger because it became a securities with a 7% decline deviation on that day. The business department with the largest selling amount on that day is dedicated to Shanghai Stock Connect, with the selling amount of about 677 million yuan. In view of the company's relevant situation, a reporter from Beijing Business Daily called the Office of the Secretary of the Board of Haitian Flavor Industry for an interview, but no one answered the phone.

Pang Kang proposed the company to buy back shares on the evening of October 16 when the stock price fell sharply.

The announcement shows that based on confidence in the company's future sustainable and stable development and recognition of the company's value, combined with the company's business and financial conditions, according to relevant laws and regulations, Pang Kang proposed that the company buy back some public shares through centralized bidding transactions.

Specifically, Pang Kang proposed that the total amount of repurchase funds should be no less than 500 million yuan (inclusive) and no more than 800 million yuan (inclusive). The repurchased shares will be used for employee stock ownership plans or equity incentives. The repurchase price shall not exceed 150% of the average trading price of the company's shares 30 trading days before the board of directors passes the repurchase resolution. The source of repurchase funds is the company's own funds.

Pang Kang, the proposer, promised to actively promote the company to convene the board of directors as soon as possible to review the share buyback in accordance with the provisions of the Rules for Share Repurchase of Listed Companies and the Articles of Association, and promised to vote in favor of the company's share buyback proposal at the board of directors. Haitian Flavor Industry said that the company would study the above contents carefully as soon as possible, formulate a reasonable and feasible share repurchase plan, perform the approval procedures in accordance with relevant regulations, and timely perform the obligation of information disclosure.

From the perspective of performance, in the first half of this year, the operating income and net profit of Haitian Flavor Industry declined. Financial data shows that in the first half of this year, Haitian Flavor Industry realized an operating income of about 12.97 billion yuan, down 4.19% year on year; The corresponding attributable net profit was about 3.096 billion yuan, down 8.76% year on year; The corresponding net profit after deducting non profits was about 2.97 billion yuan, down 9.79% year on year.

key word: Haitian Flavor Industry company price of stock shares