Zhejiang Jinfanda Biochemical, the second largest shareholder of Xingfa Group, planning RMB220-440 million capital increase

Xingfa Group is a prime chemical enterprise in China, specializing in production of phosphorus chemical products. A few days ago, the company announced that its second largest shareholder Zhejiang Jinfanda Biochemical is planning an increase of capital in Xingfa Group.

Jinfanda Biochemical is an important shareholder of Xingfa Group, holding above 5% of the stakes in the company. According to the announcement made on January 22, Jinfanda Biochemical plans to increase its shares in Xingfa Group in the coming 12 months via competitive bidding transaction, using bank special loans and its own funds. The increase of holdings ranges between RMB220 million to RMB440 million yuan, without a set price range. Jinfanda Biochemical is prepared to gradually implement the capital increase according to the company’s stock price fluctuation and the overall trend of the capital market.

Jinfanda Biochemical says that this increase of holdings is based on its firm confidence in the company’s future development prospects as well as the full recognition of the medium and long-term value of the company. By increasing its holdings, Jinfanda Biochemical expects enhancement of investor confidence in the company and increase of the value of the company, thus safeguarding the interests of investors.

In addition, Jinfanda Biochemical has carried out a pledge of capital stocks. According to the announcement, Jinfanda Biochemical currently holds 162,397,372 shares of Xingfa Group, accounting for 14.72% of the company’s total shares. After pledge of 15,000,000 shares this time, the cumulative pledge of shares will reach 50,000,000 shares.

Founded in 2007, Jinfanda Biochemical is engaged in production of glyphosate technical and a variety of glyphosate formulations, being one of the leading manufacturers of glyphosate formulations.