Quoc Cuong Gia Lai plans to issue more than 27.5 million shares to pay a 10% stock dividend for 2021, VnExpress reported. Its board said implementation would follow written consent from the State Securities Commission, reviving a proposal shareholders approved in mid-2022.
A long-delayed distribution
When the plan was originally approved, the company had VND491 billion in undistributed after-tax profit and intended to allocate around VND275 billion to the dividend.
Management has attributed the delay to cash-flow pressure. Retained earnings were needed for investment, unfinished property developments and debt repayments during periods when working capital was difficult to obtain.
The company’s previous dividend was paid in mid-2018. That final cash distribution for 2017 amounted to 6.4%, or VND640 per share.
Ownership and nine-month performance
The announcement follows Nguyen Thi Nhu Loan’s return as chief executive in mid-October. She holds approximately 102 million shares, representing 37.05% of the company. Completion of the proposed distribution would raise her holding to about 112 million shares while leaving her ownership percentage unchanged, according to the report.
Nine-month revenue from property, rubber and electricity totalled VND107 billion, compared with the full-year target of VND2.403 trillion. After-tax profit approached VND175 billion, supported by more than VND243 billion in other income associated with the liquidation and transfer of hydropower assets.
QCG shares closed November 4 at VND10,500, up nearly 3% against the reference price. The next step for the stock-dividend proposal is the regulator’s written response.