Jilin Expressway's net profit rose three times in a row, but the suspension of dividends in 2023 raised investors' concerns about the risk of ST.
In 2023, the annual report of Jilin Expressway (601518) (601518) revealed that the company's net profit reached 5%.Fullhousepokerhand.46 billion yuan, an increase of 38.84% over the same period last year, achieving year-on-year growth for three consecutive years.
Despite its outstanding performance, Jilin Expressway announced that it would not distribute profits in 2023, including cash dividends, stock dividends and capital accumulation funds to increase equity, causing dissatisfaction among some investors.
When the board of directors voted on the profit distribution plan for 2023, the representative director of China Merchants Highway (001965), the second largest shareholder, abstained. Director Liu Xianfu and independent director Lin Jianzhong expressed doubts about no dividend.
Jilin Expressway has not implemented cash dividends in the past two years, and by the end of 2023, the undistributed profit has reached 2.65 billion yuan.
The company explained that the purpose of suspending dividends is to reserve working capital, to ensure solvency, and to anticipate large-scale investment and acquisition spending over the next 12 months.
Investors expressed concern about the decision to stop paying dividends and that the company might face the risk of implementing other risk warnings (ST).
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