Xiangcai Shares' controlling shareholder and concerted actor Quzhou Development pledges 34.465 million shares, with a total pledge ratio of 74.21%.

China Visit Network data Xiangcai Co., Ltd. recently issued an announcement stating that Quzhou Xinan Development Co., Ltd., an affiliate of the company’s controlling shareholder Xinhu Holding Co., Ltd., has办理了 a share pledge transaction. Specifically, Quzhou Development pledged 12 million shares of the company, accounting for 2.58% of the shares it holds and 0.42% of the company’s total share capital. The pledgee is the Quzhou Qijiang sub-branch of Industrial and Commercial Bank of China Co., Ltd., and the pledged shares are for the purpose of providing self-financing and担保.

As of the date disclosed in the announcement, Quzhou Development holds approximately 464 million shares of Xiangcai Co., Ltd., representing 16.24% of the company’s total share capital. After this pledge, the total number of pledged shares increased to approximately 345 million shares, representing as much as 74.21% of its shareholding and 12.05% of the company’s total share capital. The controlling shareholder Xinhu Holding and its affiliate, Quzhou Development, collectively hold approximately 1.154 billion shares of the company, accounting for 40.37% of the total share capital. The total number of pledged shares under pledge is approximately 1.034 billion shares, representing 89.62% of their combined shareholding and 36.18% of the company’s total share capital.

The announcement states that, within the next six months, the number of pledged shares due for maturity by the controlling shareholder and its affiliates is 569 million shares, accounting for 49.26% of the shares they hold. Within the next one year (excluding those due within six months), the number of pledged shares due for maturity is 360 million shares, corresponding to a financing amount of RMB 2.617 billion. The company said that the relevant parties have the ability to repay funds, and the sources of repayment include operating revenue, profits, and others. At present, there is no risk of liquidation or forced liquidation for the pledged shares. If risks arise, measures such as early repayment and share repurchase will be taken to address them. This pledge matter will not have an impact on the company’s production and operations, governance structure, or actual control.

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