Chongqing Department Store Co.Ltd(600729) ( Chongqing Department Store Co.Ltd(600729) , SH; previous closing price of 26.86 yuan / share) set the record of the most generous dividend since its listing.
On March 25, 2022, the 2021 annual report released by the company shows that it plans to distribute a cash dividend of 37.90 yuan (including tax) for every 10 shares.
It is worth noting that such generous Chongqing Department Store Co.Ltd(600729) profit performance is declining. In 2021, the net profit attributable to shareholders of listed companies was 980 million yuan, a year-on-year decrease of 6.68%. Recently, the controlling shareholders of the company have also announced the reduction of their holdings, and even short-term transactions have occurred.
annual dividend amount exceeds the total net profit of the year
Chongqing Department Store Co.Ltd(600729) is mainly engaged in department stores, supermarkets, electrical appliances and automobile trade. It has well-known trademarks and commercial brands such as Chongqing Department Store Co.Ltd(600729) , new century department stores, commercial appliances, commercial automobile trade and so on.
In 2021, Chongqing Department Store Co.Ltd(600729) achieved an operating revenue of 21.124 billion yuan, a year-on-year increase of 0.22%; The net profit attributable to the parent company was 980 million yuan, a year-on-year decrease of 6.68%; The net profit attributable to the parent company after non deduction was 923 million yuan, a year-on-year increase of 58.65%.
Chongqing Department Store Co.Ltd(600729) 2021 net profit increased by 58.65%, which may be related to the low base in 2020. Under the influence of the epidemic, the company’s net profit after deducting non-profit was 566 million yuan in 2020, a year-on-year decrease of 36.35%.
However, compared with the performance, the dividend data in Chongqing Department Store Co.Ltd(600729) 2021 annual report has attracted more attention from the market: the company plans to distribute a cash dividend of 37.90 yuan (including tax) for every 10 shares to all shareholders in 2021.
By the end of 2021, Chongqing Department Store Co.Ltd(600729) had a total share capital of 407 million shares, deducting the total number of shares in the company’s special securities repurchase account by the end of 2021. Based on this calculation, Chongqing Department Store Co.Ltd(600729) plans to distribute cash dividends of about 1.5 billion yuan, which even exceeds the company’s net profit of 1.015 billion yuan in that year.
This is not Chongqing Department Store Co.Ltd(600729) the first generous dividend. In 2020, the company also launched a cash dividend scheme of 36.9 yuan (including tax) for every 10 shares, and the amount of cash dividend in that year was as high as 1.475 billion yuan.
According to media reports, with regard to the high dividend in 2020, at the general meeting of shareholders in April 2021, Chongqing Department Store Co.Ltd(600729) legal representative and managing director he Qian once responded that the high proportion of cash dividend is a return to shareholders in response to the call of the CSRC and within the allowable conditions.
controlling shareholders recently announced that they plan to reduce their shares by no more than 3%
The total amount of generous dividends for two consecutive years is nearly 3 billion yuan. What is the impact on Chongqing Department Store Co.Ltd(600729) China? By the end of 2021, Chongqing Department Store Co.Ltd(600729) undistributed profit was about 5 billion yuan, and the net cash flow from operating activities in 2021 was 1.114 billion yuan.
In the post epidemic era, Chongqing Department Store Co.Ltd(600729) better profit performance is related to the investment income of the company. In 2021, the company realized a net profit of 1.382 billion yuan from the immediate consumption of investment and equity participation. The company accounted for the long-term equity investment according to the equity method, and recognized the investment income of 429 million yuan in this period. This accounts for about 44% of the company’s net profit of 980 million yuan to the parent company in 2021.
Listed companies pay generous dividends, and the biggest beneficiaries are shareholders. According to the annual report of Chongqing Department Store Co.Ltd(600729) 2021, by the end of 2021, the controlling shareholder of the company was Chongqing Commercial Society (Group) Co., Ltd. (hereinafter referred to as the commercial society group. After continuous division, the newly established company was Chongqing commercial society business management Co., Ltd., with the same equity structure as the commercial society group), which held 54.41% of the shares of the listed company. If Chongqing Department Store Co.Ltd(600729) generously pays dividends according to this share ratio, the business group will get more than 800 million yuan.
In recent years, business groups have carried out mixed reform. According to the annual report of Chongqing Department Store Co.Ltd(600729) 2021, Tianjin Wumart and Chongqing Yufu capital operation group Co., Ltd., a state-owned asset of Chongqing, respectively hold 44.499% of the business group, and Better Life Commercial Chain Share Co.Ltd(002251) holds 9.899%.
However, on February 22, about a month ago, the business group announced that it planned to reduce its stake in Chongqing Department Store Co.Ltd(600729) no more than 3% within six months. As of March 23, the business group had reduced its holdings by 2.15%. Based on the conservative calculation of the lowest share price of listed companies since February 22 of 23.05 yuan / share, the cash out amount of the business group was at least 200 million yuan.
On March 24, the business group continued to reduce Chongqing Department Store Co.Ltd(600729) 401300 shares, and cashed out about 10.12 million yuan based on the average transaction price of 25.23 yuan / share. However, on the same day, the business group mistakenly bought Chongqing Department Store Co.Ltd(600729) 1100 shares, which constituted a short-term transaction, and the company apologized in its announcementp align=”center”>
