Sanquan Food plans to spend 75 million to 150 million yuan to repurchase shares for equity incentives and employee stock ownership plans.

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On March 25, 2026, Sanquan Foods Co., Ltd. (hereinafter referred to as “Sanquan Foods”) announced that the fifth meeting of the ninth board of directors reviewed and approved the share repurchase plan, intending to use its own funds and self-raised funds to repurchase a portion of A-share shares through centralized bidding, with a total repurchase amount not less than 75 million yuan and not exceeding 150 million yuan, for equity incentives and/or employee stock ownership plans.

Core Elements of the Repurchase Plan

According to the announcement, the shares to be repurchased are the company’s issued ordinary shares (A-shares), and the repurchase price will not exceed 13.50 yuan/share (inclusive). Based on the upper limit of the repurchase amount of 150 million yuan and the price limit of 13.50 yuan/share, the expected repurchase quantity is approximately 11,111,100 shares, accounting for 1.26% of the company’s total share capital; based on the lower limit of the repurchase amount of 75 million yuan, the expected repurchase quantity is approximately 5,555,600 shares, accounting for 0.63% of the total share capital.

The repurchase period will not exceed 12 months from the date the board of directors approves this plan (March 24, 2026). The company will implement the repurchase at an opportune time based on market conditions. If the use of repurchase funds reaches the upper or lower limit, the repurchase may be terminated early; if significant events occur or the board of directors decides to terminate, the repurchase will also end early.

Sources of Funds and Financial Impact

The funds for this repurchase will come from the company’s own funds and self-raised funds. The announcement shows that as of September 30, 2025 (unaudited), Sanquan Foods had total assets of 7.569 billion yuan and equity attributable to shareholders of the listed company of 4.527 billion yuan. Based on the upper limit of the repurchase funds of 150 million yuan, the proportions of total assets and owner’s equity are 1.98% and 3.31%, respectively, both of which are relatively low. The company stated that this repurchase will not have a significant impact on operations, finances, research and development, or debt fulfillment capabilities, nor will it change the company’s listing status.

Estimated Changes in Equity Structure

If the repurchase is calculated based on a lower limit of 75 million yuan and a price of 13.5 yuan/share, the expected repurchase is 5,555,600 shares. If all are locked up, the changes in the company’s capital structure are as follows:

If the repurchase is calculated based on an upper limit of 150 million yuan and a price of 13.5 yuan/share, the expected repurchase is 11,111,100 shares. If all are locked up, the changes in the capital structure are as follows:

Note: The above estimates do not consider the impact of other factors; actual data will prevail upon completion of the repurchase.

Risk Warning and Shareholder Dynamics

The announcement warns that this repurchase may face risks if the stock price continues to exceed the upper limit of the repurchase price, which could lead to the plan being unimplemented or partially implemented; if the equity incentive/employee stock ownership plan is not approved or the incentive recipients choose to forgo subscription, the repurchased shares may not all be granted; moreover, significant events or the board of directors terminating the plan could also lead to interruptions in the repurchase.

As of the announcement date, the company’s controlling shareholders, actual controllers, directors, senior management, and shareholders holding more than 5% of the shares have no clear plans for reduction in the next 3 to 6 months. If there are plans to reduce holdings in the future, they will strictly comply with regulations and fulfill information disclosure obligations.

Significance of the Plan and Subsequent Arrangements

Sanquan Foods stated that this repurchase is based on confidence in the company’s future development and recognition of its long-term value, aimed at safeguarding investor interests. At the same time, through equity incentives and employee stock ownership plans, a long-term incentive mechanism will be established to motivate core personnel. If the repurchased shares are not fully utilized within three years, the unused portion will be legally cancelled. The company’s board of directors has authorized the management to handle matters related to the repurchase, including formulating specific plans, adjusting prices, and handling cancellations or transfers.

Market analysis believes that this repurchase plan conveys the company’s confidence in its operations, helps stabilize stock prices, and enhances investor expectations, while the improvement of the incentive mechanism may further promote the company’s long-term development.

Disclaimer: The market carries risks, and investments should be made cautiously. This article is automatically published by an AI model based on third-party databases and does not represent the views of Sina Finance. Any information appearing in this article is for reference only and does not constitute personal investment advice. In case of discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

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