Lamp producer holds onto cash as business hit by virus

Tuesday, Apr 07, 2020 15:08

Dien Quang Lamp JSC's products displayed at an exhibition. The company has delayed its first 2019 cash dividend payment until the year-end on worries about poorer performance this year as the economy is hit by COVID-19. — Photo

Dien Quang Lamp JSC has deferred its first 2019 cash dividend payment until the end of the year over fears the COVID-19 pandemic will hurt business.

The first cash dividend payment for 2019, scheduled for April 9, will be put off until December 31.

The payment rate is 10 per cent, meaning every shareholder will receive VND1,000 (US$0.043) for each share they have. The batch is worth nearly VND34.4 billion ($1.46 million).

The company plans to pay a total 15 per cent cash dividend for its performance in 2019. The rate is lower than that recorded in 2018, which was 30 per cent.

Dien Quang in 2019 recorded VND730 billion in total revenue and VND29.6 billion of post-tax profit, down 37 per cent and 67 per cent on-year, respectively.

The company has also postponed its annual shareholders’ meeting indefinitely.

According to CEO and Chairman Ho Quang Hung, the spread of the new coronavirus will definitely hamper market consumption in 2020. Though the firm has taken measures to stop its operation being affected, holding onto cash is now a better option to prepare for potential risks, he said.

At the end of 2019, Dien Quang reported a total value of cash and cash equivalents at approximately VND200 billion.

The company's shares (HoSE: QDC) fell 2.4 per cent to trade at VND16,500 per cent on Tuesday. Its shares have gained 35 per cent since March 10. — VNS

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