XNY $2.98 WITH SHARE PURCHASE PROGRAM: Xiniya Announces Share Repurchase Program of Up to $1.8 Million
Chairman and CFO to also purchase up to $200,000 and $50,000, respectively, of ADSs using their personal funds
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o China Xiniya Fashion Limited
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ource: China Xiniya Fashion Limited On Wednesday August 10, 2011, 10:49 am EDT
JINJIANG, China, Aug. 10, 2011 /PRNewswire-Asia/ -- China Xiniya Fashion Limited (NYSE:XNY - News) (or "Xiniya"), announced that its Board of Directors has approved a share repurchase program that will allow Xiniya to buy up to $1.8 million of its American depositary shares ("ADS") in the open market, subject to market conditions and other factors. Any repurchases will be made in compliance with the Securities Exchange Commission's (SEC) Rule 10b5-1. The share repurchase program, will become effective on September 1, 2011, and is authorized to be in effect through December 31, 2012. In addition, Qiming Xu, Xiniya's Chairman and Chief Executive Officer, will purchase up to $200,000 of ADSs with his own personal funds. Chee Jiong Ng, Xiniya's Chief Financial Officer, will also purchase up to $50,000 of ADSs with his own personal funds.
Mr. Qiming Xu, Chairman and Chief Executive Officer, said, "Our Board of Directors approved this share repurchase program to demonstrate its confidence in the long-term growth outlook for Xiniya and its desire to create value for our shareholders. Our good cash position gives us flexibility to continue our growth strategy and to buy our ADSs through the share repurchase plan."
"I believe that Xiniya's shares are currently undervalued and do not reflect the Company's current business momentum and solid long-term growth outlook. Therefore, in addition to our company share repurchase program, I expect to purchase up to $0.2 million of our ADS during the same period of time."
Under the share repurchase program, Xiniya is authorized to repurchase up to $1.8 million of its issued and outstanding American depositary shares from time to time in open-market transactions on the NYSE at prevailing market prices, in negotiated transactions off the market, in block trades, in trades pursuant to a Rule 10b5-1 repurchase plan that allows Xiniya to repurchase its shares during periods in which it may be in possession of material non-public information, or otherwise, in accordance with applicable federal securities laws, including Rule 10b-18.
The repurchases will be made at management's discretion, subject to restrictions on price, volume, and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of its shares, and other factors. The repurchase program does not obligate Xiniya to make repurchases at any specific time or situation.
Xiniya's Board of Directors will periodically review the share repurchase program and may authorize adjustments to the program's terms and size. The Board may also suspend or discontinue the repurchase program at any time.
As of July 31, 2011, Xiniya had 232 million ordinary shares outstanding, represented by 58 million ADSs. Each ADS represents four ordinary shares.
The number of shares to be repurchased and the timing of repurchases (if any) will depend on a variety of factors, including, but not limited to, share price, economic and market conditions and corporate and regulatory requirements. The plan does not obligate the Company to repurchase any shares. The plan is scheduled to terminate on December 31, 2012 or the time at which the purchase limit is reached, but may be suspended or terminated at any time at the Company's discretion without prior notice.
About China Xiniya Fashion Limited
Xiniya is a leading provider of men's business casual apparel in China. The Company designs and manufactures men's business casual and business formal apparel and accessories,
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