Zongshen PEM Power Systems Inc. (TSX:ZPP) plans to buy back up to 5% of its shares in an effort to boost the company's share price.
Zongshen's shares have taken a beating in the past month, falling more than 55% from $1.23 per share September 2 to $0.55 on October 14.
The Vancouver company, which makes small electric and gas-powered scooters, reported a net profit of $1.4 million for the six-month period ending June 30, 2008. That's up from a $500,000 loss in the same period in 2007. Its six-month revenue rose to $13.6 million from $3.5 million.
Zongshen said it's well capitalized and doesn't hold any long-term debt. It has cash and short-term deposits on hand worth $38.9 million, up from $36.5 million in December 2007.
Starting November 15, the company plans to buy back up to three million shares, which represent roughly 5% of the 60.9 million shares outstanding.
Zongshen's share price range during the past week: between $0.48 and $0.58; 52-week high: $4.14; 52-week low: $0.40.