High dividends are not just talk!Gree Electric Appliances will pay a cash dividend of 5.537 billion yuan

2022-05-09 0 By

After throwing out high dividend scheme, Gree electric appliances ahead of time to drill.On the evening of February 13, Gree Electric Appliances (000651.SZ) announced that it plans to implement the mid-term dividend in 2021, taking into account the current operating conditions, development plans, financial situation and the consistency of cash dividend policy.Gree Electric Appliances reported a net profit of 7.888 billion yuan (unaudited) in the first half of 2021, and a profit available for distribution to shareholders of 59.67 billion yuan (unaudited) as of June 30, 2021.In accordance with relevant laws and regulations and the Articles of Association, the company plans to temporarily distribute cash dividends of 10 yuan (including tax) to all shareholders for every 10 shares, without bonus shares, and without converting accumulation fund into capital stock, totaling 5.537 billion yuan in cash dividends.Gree had previously announced plans to pay out half of its profits in dividends in each of the next three years.On January 24 this year, Gree formulated the Shareholder Return Plan for the Next Three Years (2020-2024), stating that on the premise that the cash flow of the company meets the normal operation and long-term development of the company, the cumulative total cash dividend of the company from 2022 to 2024 should not be less than 50% of the net profit of the year.After the news comes out, cause industry hot discussion.Now gree electric appliances is quickly delivering a big dividend.In fact, Gree Electric Appliances has previously issued the shareholder return plan for the next three years twice, with the implementation phase being 2012-2014 and 2016-2018 respectively.According to the public data information, gree Electric Appliances has paid out dividends 22 times from its listing in 1996 to 2020, with the total amount of dividends reaching 67.566 billion yuan, accounting for more than 40% of the net profit returned to its parent during the period.In the six years after 2012, except for the great turbulence in performance in 2017, the amount of dividends in other years was 3.08 billion yuan, 4.512 billion yuan, 9.024 billion yuan, 10.828 billion yuan and 12.633 billion yuan respectively.The amount of dividends accounted for the highest proportion of net profit 72%.In 2020, in the first year of gree’s mixed-ownership reform, Gree Electric Appliances paid a dividend of 22.674 billion yuan, with a dividend rate of 102.25%.Judging from gree’s announcement, the cash dividend of 10 yuan (including tax) for every 10 shares is also generous.The 5.537 billion yuan in dividends it plans to distribute accounts for about 70 percent of its first-half net profit of 7.888 billion yuan (unaudited).Xuan Jiyou, director of Qianmen Asset Investment research, said in an interview with Securities Daily: “Usually, listed companies willing to implement high dividend will have good capital market performance. Gree Electric Appliances’ release of high dividend plan shows that it is full of confidence in the future, has sufficient funds, and has more opportunities to attract institutional investors.Gree electric Appliances’ story ‘has been fully told, and its development prospects and direction are clear. The next step is to see if it can really consolidate its performance.””Gree is indeed generous in terms of the size and size of the dividend.A series of dividend plans, is expected to the end of the gree electric appliances board of directors re-election will also have a certain impact.But high dividends are also a double-edged sword.High share out bonus formed convention, have not share out bonus to be able to cause people to be dissatisfied occasionally, form reverse pull to share price.Gree did not pay a cash dividend in 2017 and its shares fell 9 per cent.Stable dividend is also a reflection of the company’s operating conditions.At the same time, the proportion of corporate profit distribution is too large, which is easy to affect the subsequent investment in RESEARCH and development, major mergers and acquisitions and entering new industries. Enterprises should do a reasonable allocation of funds in investment expansion and dividend ratio.”Home appliance industry observer Liu Buchen told reporters.