Foshan Lighting "Although defeated by glory"

According to media reports, 17 of the 20 listed A-share companies of Buddhist companies in 2012 launched a dividend scheme, and basically all of them were paid, but there were also three listed companies including Hisense Kelon, Saturday Footwear and Jingyi. No dividend scheme was introduced. The three listed companies did not offer dividend plans, not because of the company’s loss in 2012. They all achieved profitability, but they did not pay dividends to shareholders. Investors often ridiculed such listed companies as "iron cocks."

The fact that listed companies do not pay dividends is a chronic problem in the Chinese capital market for more than 20 years. Some listed companies have never paid dividends since they were listed. Some listed companies' dividends are very tricky. They just take out a small portion of the company's net profit to distribute dividends. In other listed companies, the dividend policy is just like a roller coaster. It is sometimes high or low, and sometimes it is not. As a result, the status quo of the dividends of listed companies is abnormally chaotic.

These maladies have also occurred in Foshan in the Chinese capital market. For example, since Hisense Kelon had made a dividend in 1999, it hasn’t made a second dividend in 13 years. The Shunde-branded company, Wanjiale, also did not make any dividends during 2000-2008 for eight consecutive years.

The listed companies have profits without dividends, which encourages the speculative value orientation of the capital market. Investors will find it difficult to obtain sustained returns through dividend returns. Naturally, they will shift from long-term investment to speculation. They will use “high buy lows” to gain share price differentials. This value orientation is obviously not conducive to the healthy development of the capital market.

Many listed companies have their own arguments for profit sharing. They believe that in order to develop major project developments, the company retains current year profits for the future development of the company to reduce the company's future operations and financing costs. This view seems to be reasonable to some securities experts, but the reality is that most companies use this as an excuse. Dong Dengxin, director of Wuhan University of Finance and Securities Research Institute, expressed his opposition. He believes that it is impossible to confuse cash dividends with refinancing. "It's like you can't eat today and save it for tomorrow."

To this end, the China Securities Regulatory Commission last year issued the "Notice on Further Implementing Related Matters Concerning Cash Dividends of Listed Companies", explicitly requiring listed companies to provide investors with reasonable investment returns, and emphasizing the importance of cash dividends in fostering long-term investment concepts in capital markets and enhancing the vitality of capital markets. The importance of attraction.

In terms of dividends for listed companies, Foshan Lighting located in Chancheng District is a model for the entire capital market. According to statistics, by 2009, Foshan Lighting Group has maintained a large percentage of dividends for 15 years since its listing, and the dividends have remained stable. The total cash dividend distribution has reached 2.1 billion yuan, far exceeding the total amount of 1.337 billion yuan it has raised. For the sustained high returns to shareholders, Foshan Lighting won the reputation of "cash cows." There are such excellent models around. Should other listed Buddhist companies not pay tribute to them and strive to chase it?