Web Exclusive

25 companies stingy with dividends

By Hu Yang (chinadaily.com.cn)
Updated: 2010-03-31 16:55

Twenty-five companies listed in the A-Share market have not given investors any dividends in the past three years despite their strong returns, according to research by Investor Journal.

Altogether, 675 listed companies had released annual reports by March 25. The newspaper studied their undistributed profits and net assets in the last three years and picked out 326 companies competent to give out decent dividends. But it turned out that 25 of them had not given out any dividends.

Special Coverage: 2009 Annual Reports of Listed Companies
Related readings: Chalco reports losses in 2009 on low product prices Miserly to shareholders, generous to senior executives Who is the most generous listed company? Profits surge for China's listed in 2009

Their dividend payment ability was calculated by dividing the average undistributed profits over the past three years by average net assets over the same period.

The 25 companies involve 13 industries. Six are from the real estate industry, the largest number in a single industry.

The stingiest scrooges

Laiyin Property, a developer listed on the Shenzhen stock exchange since 1994, has not paid dividends to investors for the longest period -- 15 years.

Gree Real Estate, another real estate developer, ranks second on the stingiest list with a nine-year history of no dividends.

The richest misers

Meili Paper has the strongest position to give out dividends, with its dividend paying ability ratio of 42 percent. The ratio was calculated by dividing the average annual undistributed profits over the past three years (392 million yuan) by the annual net profit on average (951 million yuan).

However it has not paid a cent of dividends to its investors for five years, while its net profits increased every year except for 2006 and 2009. Its 2006 undistributed profit was more than 200 million yuan. The number increased to 350 million yuan in 2007 and 400 million in 2008.

Following Meili Paper is Aerospace Electronics, with a ratio of 40 percent. Its undistributed profits in the past three years amounted to 1.1 billion yuan and the annual net profit is 2.85 billion yuan, but its last dividend payments were in 2006.