Essence King Huabao shares (stock code: 300741) disclosed the 2020 annual profit distribution plan: the company plans to pay a cash dividend of 16 yuan (including tax) for every 10 shares to all shareholders, with a cumulative dividend of 985 million yuan.
Although at the current share price, the dividend yield of Warburg’s shares is only 3.5%, but from the perspective of net profit, Warburg’s share dividends accounted for 83.5% of its net profit last year. According to the company’s 2020 annual report disclosed on the same day, Huabao’s net profit attributable to its parent reached 1.18 billion yuan last year, down 4.45 percent year on year.
“The Pumping Queen is pumping again.” After the disclosure of the 2020 dividend plan, there are investors in Snowball platform teasing. Warburg shares has always been known for its “generous dividend”. In the 2018 dividend plan, the proposed dividend amount even reached 2 times the net profit of the year and received a letter of concern from the Shenzhen Stock Exchange. 2019 dividend plan, its dividend amount accounted for the proportion of annual net profit as high as 98.8%.
The shareholding structure of Warburg is highly concentrated. Huafeng International holds 81% of the shares of the listed company and is the largest shareholder of Warburg. Continue to find after equity penetration, Huabao shares of bonus funds flow to the majority of the “pumping queen” said Zhu Linyao in the hands. Based on the shareholding ratio, Zhu Linyao will accumulate 2.79 billion yuan (including tax) through the three-year dividend of Warburg.
“Tuhao Company” three years cumulative dividend of 4.67 billion yuan
Founded in 1996, Huabao Flavors & Fragrances (Shanghai) Co., Ltd., formerly Huabao Flavors & Fragrances (Shanghai) Co., Ltd., is mainly engaged in the research and development, production, sales and service of tobacco flavor, food flavor, daily flavor and food ingredients. On March 1, 2018, Huabao was successfully listed on the Growth Enterprise Market (GEM) by dividing and packaging the assets of Huabao International.
Just a year after going public, Warburg shares showed off a wave of “rich” dividends.
On March 12, 2019, Huabao disclosed its 2018 dividend plan, the company paid out 40 yuan (including tax) as a cash dividend for every 10 shares to all shareholders, with a total cash distribution of about 2.464 billion yuan. According to the annual report, the company’s net profit in 2018 was only 1.176 billion yuan. In other words, the company’s net profit for the year was not even half the amount of dividends.
This issue has aroused widespread concern in the capital market. The Shenzhen Stock Exchange issued a Letter of Concern to the company, requiring it to explain the specific reasons for the high proportion of dividends in the listing year, whether it is inconsistent with the necessity of making up for the flow of raised funds disclosed in the prospectus, and whether there is a situation that the raised funds are used indirectly for profit distribution; And required to explain whether the company’s shareholders have a reduction plan, the profit distribution matters whether there is speculation in the share price, with shareholders to reduce the situation.
Since then, Warburg shares have continued to “go its own way”, with one high-proportion dividend scheme after another year.
On March 28, 2020, Huabao disclosed the 2019 dividend plan, and paid 19.8 yuan in cash dividends to all shareholders for every 10 shares, with a total dividend of 1.22 billion yuan, accounting for 98.8% of the net profit of the year.
On March 19, 2021, Huabao disclosed the dividend plan for 2020: the company planned to pay a cash dividend of 16 yuan (including tax) for every 10 shares to all shareholders, with a total dividend of 985 million yuan, accounting for 83.5% of the net profit.
Where does the bonus money go? In terms of shareholding ratio, most of the money went to the major shareholder, Hua Feng International Investment Holdings (China) Co., Ltd. (hereinafter referred to as “Hua Feng International”), whose shareholding ratio has been 81.1% since its listing. Shell financial reporter statistics, since the listing in March 2018, Huabao shares in three years will be a cumulative dividend of 4.67 billion yuan (including tax). Based on this calculation, Huafeng International accumulated dividend 3.78 billion yuan.