The Implementation Of Cash Dividends By Listed Companies Finally Came To An Immediate Conclusion.

Because of the large loan amount and high debt ratio, the bank has certain financial risks and high financial cost, which has increased the company's demand for retained funds.

SFC urged May

Implementation

The order finally came to an instant.

This month, seven wolves, Xun Xing shares, Bank of China cashmere, Phoenix Bamboo textile, Rebecca and many other listed companies.

In succession, the shareholder return plan and dividend policy in the next three years (2012~2014) have been released and relevant demonstration reports have been published.

Many listed textile enterprises have established in principle that the profits allocated by the company in cash every year are no less than 10% of the distributable profits realized in the current year, and the profit accumulated in cash in the past three years is not less than 30% of the average annual distributable profit realized in the last three years.

Echoing it is that the local securities regulatory bureaus have also launched a series of attacks on the companies that have not been paid dividends for a long time, share a low dividend rate, and have paid dividends after the listing.

"The SFC's dividend requirements are more directed towards cash dividends, but for insurance purposes, the planning standard is first formulated in accordance with the minimum requirements for cash dividends issued by the SFC."

Mr. ng, a securities division of Thailand securities, told reporters that if the company is profitable, it will not rule out the possibility of further raising the proportion of cash dividends.

In the three year shareholder return plan announced by the listed textile enterprises, the commitment to cash dividends almost stays at the 10% minimum standard.

This standard is mostly based on annual profit and distributive basis, and the profit allocated in cash in principle is not less than 10% of the profit allocated in the current year.

The pure cash dividend method has not received much praise. Many enterprises have noted that the company can distribute dividends in various ways.

In the shareholder's return plan of the seven wolves, it is mentioned that cash can be allocated by way of cash, stock or cash combined with stock.

The Bank of China said that profits could be distributed in cash, shares or other ways permitted by laws and regulations.

Under the premise of ensuring the full amount of cash dividend distribution, the company can increase profit distribution by way of additional dividend distribution and accumulation fund.

"Because of the large loan amount and high debt ratio, there is a certain financial risk and high financial cost, which has increased the company's demand for retained funds.

If the financial structure of Future Ltd is further optimized and the demand for working capital is reduced, the proportion of cash dividends will be further increased. "

In argumentation on shareholder returns, the Bank of China pointed out that the financing channels of private enterprises are relatively simple, mainly through equity financing, debt financing and profit retention.

Compared with equity financing or debt financing, retained earnings have lower financing costs, less restrictive conditions, and smaller financial burden and risk.

Therefore, when the cash dividend scheme is formulated, the retained earnings will be properly guaranteed.

The consistent principle of profit distribution by public companies is to give full consideration to the company's current and future profit scale, cash flow status, development stage, project investment capital demand, bank credit and creditor's rights financing environment, etc., paying attention to the reasonable return to investors and giving consideration to the sustainable development of the company.

According to statistics, 8 of the top 20 share dividends were listed on the market in 2011. A large amount of undistributed profits accumulated before the listing and capital accumulation formed by subsequent shareholders' capital premiums contributed to the crazy bonus of the new shares. But because of the absolute controlling power of large shareholders, they often fall into large shareholders' cash instruments. In order to prevent such a phenomenon of cash dividends, the SFC will focus on the new shares, and has repeatedly reiterated the protection and focus on the interests of small and medium investors in this cash dividend order.

The listed textile enterprises that have announced the shareholder return plan in the next three years have consistently indicated that they should pay full attention to the reasonable demands and opinions of small and medium investors, especially the public investors, so as to formulate an annual distribution plan.

"In considering the interests of small and medium investors, our annual profit distribution plan will take the form of voting. We should take full advantage of the Internet platform to absorb the opinions of small investors. After a reasonable demonstration, the final plan can be further adjusted.

At the same time, we can also put forward ideas and suggestions in our public communication platform.

The staff of the Securities Department of Thailand said that small shareholders could also be invited to attend the shareholders' meeting.

The Bank of China has also attached great importance to the public investors. In the future shareholders' meeting, when considering the specific plan of cash dividends, it will actively communicate with shareholders, especially small and medium-sized shareholders, through various channels, including telephone, fax and e-mail communication, plan investors' reception day or invite small and medium shareholders to participate in the meeting, so as to fully listen to the opinions and demands of minority shareholders and respond to the concerns of small shareholders in a timely manner.