Daqian Ecology announced that shareholder Anhui Xinhua Distribution Group Holding plans to reduce its stake by no more than 1.3572 million shares through centralized bidding, representing no more than 1% of the company's total share capital. Based on the closing price of 20.64 yuan per share on August 10, the maximum cash-out from this reduction is estimated at approximately 28 million yuan. Xinhua Distribution Group currently holds 10.942 million shares of the company, accounting for 8.06% of the total share capital, with the shares sourced from pre-IPO acquisitions and capital reserve capitalization. The company also disclosed its first-half earnings forecast on the same day, expecting a net loss attributable to the parent company of 34 million to 44 million yuan, with the loss widening year-on-year, mainly due to increased promotion and research and development investment in the pet business, while the business volume remains relatively small and economies of scale have yet to materialize.
Daqian Ecology & Landscape Co LtdShareholder plans to reduce stake by up to 1%, and company expects widened net loss.
