China Yingxia International, Inc. (CYXI.OB), a China based health products developer, announced today a plan to repurchase up to $2 million of its own common stock. China Yingxia will repurchase the shares on the open market, or via privately negotiated transactions, through September of 2009. The company made clear that the final number of shares repurchased and the timing of the purchases will depend on market conditions, share price, applicable legal requirements, and other factors deemed appropriate by the company’s board, and the program may be discontinued or expanded as deemed necessary in the future. China Yingxia has about 44.5 million common shares outstanding and approximately 10.9 million freely traded shares. Any shares repurchased through the program will reduce the number common shares outstanding. The repurchase will be funded with available cash on hand.
Ms. Yinxia Jiao, CEO and chairwoman of China Yingxia, commented on the reason for the program, and the company’s future plans. “Our strong balance sheet provides us with the opportunity to return value to our shareholders through a stock repurchase program without impacting our ability to engage in new investments for future growth. We have recently completed the most capital intensive phase of our growth plan by increasing production capacity. Now we will focus on expanding our franchisee-based distribution network and product offerings.”
Founded in 1998, China Yingxia International is a leading health and nutritional foods company whose product portfolio includes hundreds of different products categorized into five product lines: nutritional foods, dietary supplements, raw cactus products, cosmetic products, and personal care & other products. China Yingxia’s products are sold throughout China, as well as internationally in markets such as India. The company operates its business through its wholly-owned subsidiary, Harbin Yingxia Business Group, Ltd, and sells its products through the use of franchisee owned retail outlets.
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