July 7, 2011

Chinese pork processor Zhongpin Inc plans to repurchase up to US$10 million of stock over the next 12 months, joining a growing list of companies tapping into cash stockpiles they no longer need to hoard amid an improving economy.

"Our board of directors approved this share repurchase programme to demonstrate its confidence in the long-term growth outlook for Zhongpin and its desire to create value for our shareholders," said Chairman and Chief Executive Xianfu Zhu.

Zhongpin had about 40.3 million common shares outstanding at March 31, and the stock has fallen 46% so far this year, as of Tuesday's US$11.09 close.

The company, which also processes vegetables and fruits in China, reported in May its first-quarter profit rose 27% as revenue grew 40% on higher average prices and higher tonnage.