Qingmei Executive Chairman sells 23mn shares to investors

Investors’ demand reflects their confidence in the company’s prospects and growth strategies.

Qingmei Group Holdings Limited (“Qingmei”), one of China's leading manufacturers of mid-end and high-end sports shoe soles, today announced that its Executive Chairman and CEO, Mr. Su Qingyuan, through his wholly owned vehicle, High Crown Limited, had sold 23 million vendor shares in Qingmei to private investors.

The vendor sale of 23 million shares, representing approximately 3.6% of Qingmei’s issued capital of 640 million shares, was carried out at a price of S$0.1685 per share, representing a discount of approximately 8.9% to the closing price of S$0.185 on 5 October 2011.

The primary consideration for the vendor sale is to enhance liquidity and to meet investors’ demand for the Group’s shares. The vendor sale is also a testament of investors’ confidence in Qingmei’s prospects and growth strategies.
Upon completion of the vendor sale, Mr. Su will hold 61.35% of Qingmei’s issued and paid-up share capital.

For the full year ended June 30, 2011 (“FY2011”), the Group has declared a final dividend of RMB 12.92 cents per ordinary share to be paid out either in cash or scrip. This works out to a dividend payout of approximately RMB82.7 million or 30% of the Group’s net profit. As a strong signal of confidence in Qingmei, Mr Su would be opting for scrip in its scrip dividend scheme.