During the annual report season, the profit distribution plans of listed companies were released one after another. According to the data, as of the press time of March 15, 145 A-share listed companies had disclosed their dividend plans, and many of them had launched “big” cash dividends. In recent years, driven by policy guidance and supervision, cash dividend has become the main way of profit distribution of listed companies.
large amount of dividends are frequently distributed
On March 15, Ningbo Yunsheng Co.Ltd(600366) announced that it planned to distribute cash dividend of 1 yuan (including tax) for every 10 shares to all shareholders based on 989 million shares of the company’s total share capital at the end of 2021, deducting 114121 million repurchased shares not participating in profit distribution, i.e. 978 million shares, with a total of 977702 million yuan. On the same day, Tangshan Sanyou Chemical Industries Co.Ltd(600409) , Guizhou Aviation Technical Development Co.Ltd(688239) , Avic Aviation High-Technology Co.Ltd(600862) , Nanjing Yunhai Special Metals Co.Ltd(002182) , Shenyang Cuihua Gold And Silver Jewelry Co.Ltd(002731) and other companies also disclosed their dividend plans. Data show that as of press time, 145 A-share listed companies have disclosed dividend plans.
Among the 145 dividend schemes mentioned above, the “big hand” scheme appears frequently. On March 14, Wanhua Chemical Group Co.Ltd(600309) issued the announcement of annual profit distribution plan for 2021, which said that cash dividend of RMB 2.5 per share (tax included). According to the announcement, Wanhua Chemical Group Co.Ltd(600309) 2021 achieved a net profit of 25.039 billion yuan, and the net profit attributable to the owner of the parent company was 24.649 billion yuan. After adding the undistributed profit attributable to the parent company of 40.281 billion yuan in previous years and distributing the cash dividend of 4.082 billion yuan in the previous year, the profit available for distribution to shareholders in the current year of the consolidated standard was 60.848 billion yuan. Based on the total share capital of 3.140 billion shares on December 31, 2021, this profit distribution plan will distribute 25 yuan of cash dividends (including tax) to all shareholders for every 10 shares with the profits available for distribution to shareholders. The total distributed profit is 7.849 billion yuan, and the remaining undistributed profit of 17.763 billion yuan will be carried forward to future annual distribution.
According to the combing, the reporter found that as of press time, 15 listed companies are expected to pay out more than 10 yuan for every 10 shares in 2021. In addition to Wanhua Chemical Group Co.Ltd(600309) , Sino Biological Inc(301047) , Shanghai Bright Power Semiconductor Co.Ltd(688368) , Xinghui environmental materials, Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Imeik Technology Development Co.Ltd(300896) and other five companies also expect to pay cash dividends of more than 20 yuan for every 10 shares.
From the perspective of transfer scheme, there are 30 companies including transfer in the current distribution scheme. Among them, the highest transfer ratio is Henan Liliang Diamond Co.Ltd(301071) \ transfer ratio is 6 shares for every 10 shares.
In the past two years, cash dividends have become the main way of profit distribution of listed companies. Data show that in 2019, 2792 A-share companies disclosed annual profit distribution plans, including 2766 cash dividends and 382 transfers; In 2020, 3073 companies disclosed their annual profit distribution plans, including 3058 cash dividends and 401 transfers. It is understood that in recent years, regulators have continued to strengthen system construction and strengthen the decision-making mechanism and information disclosure requirements of cash dividends. Driven by policy guidance and supervision, China’s listed companies have made positive progress in cash dividends. The cash dividend rate of listed companies has stabilized at more than 30% and the average dividend rate is more than 2%, which is basically the same as the international level.
several companies’ dividend plans were inquired
It is worth noting that some companies were inquired by the exchange after disclosing the dividend plan.
Public information shows that Jiangsu Boiln Plastics Co.Ltd(301003) implemented the semi annual equity distribution in 2021 in September 2021, and distributed a cash dividend of 10 yuan for every 10 shares based on the total share capital of 58.27 million shares. On March 1, 2022, the company disclosed the profit distribution plan for 2021. It plans to distribute cash dividends of 10 yuan per 10 shares based on the total share capital of 58.27 million shares, and increase capital reserves by 7 shares per 10 shares. Based on this calculation, the company will distribute cash dividends of 116.53 million yuan in 2021.
In view of this situation, the Shenzhen stock exchange requires the company to explain the basis and rationality for determining the proportion of profit distribution in the half year and the year of 2021, the reasons and necessity for continuous high proportion dividends after listing, and whether there is a situation of transferring benefits to major shareholders through cash dividends Jiangsu Boiln Plastics Co.Ltd(301003) said in reply that the profit distribution plan is the embodiment of the company’s actual performance of the profit distribution commitment, which is in line with the requirements of the CSRC on the dividend policy of listed companies and the provisions of the articles of association.
After the announcement of 10 shares increase and whether there is a need to distribute 10 shares of the company’s capital to all shareholders, the company also pays attention to the rationality of each 10 shares increase and whether it is required to distribute 10 shares of the company’s capital to all shareholders. The company then replied that after the implementation of profit distribution, the company’s own funds can still cover the capital needs of projects under construction. The company’s high transfer scheme complies with relevant provisions such as the company law and the accounting standards for business enterprises, and there is no case of hyping the stock price by disclosing the profit distribution plan.
Some industry experts said that with the growth and development of listed companies, it is the responsibility and obligation of listed companies to give investors a reasonable return on investment and provide investors with opportunities to share the fruits of economic growth. Cash dividend is not only an important form to realize the return on investment, but also an important way to cultivate the long-term investment concept of the capital market and enhance the vitality and attraction of the capital market. However, it should also be noted that individual listed companies have occasional “big” dividends in a short time, but the long-term sustainability is in doubt. Some “big” dividends even damage the company’s basic operating ability. This behavior should receive more regulatory attention.
