① Xinhua Insurance announced that it plans to follow up on the 2024 mid-term dividend, with an interim dividend ratio of no more than 30%. The annual profit distribution plan will take into account the interim profit distribution plan; ② Xinhua Insurance is the first listed insurance institution to follow up on the mid-term dividend since the release of the new “National Nine Rules”. Previously, Ping An of China had implemented mid-term dividends for many years and was well received and recognized by the agency.
Financial Services Association, May 25 (Reporter Zou Juntao) Following banks, listed insurance institutions are also following up on mid-term dividends one after another.
On the evening of May 24, Xinhua Insurance (601336.SH) announced the resolution of the 21st meeting of the 8th board of directors. According to the announcement, the board of directors of the company reviewed and passed the “Proposal on Arrangements Related to Mid-Term Profit Distribution in 2024" and agreed to submit the bill to the shareholders' meeting for consideration.
According to the announcement, according to relevant legal regulations and regulatory requirements, Xinhua Life plans to arrange for the 2024 interim profit distribution: according to the reviewed financial report for the first half of 2024, the current performance, financial situation and risk control index requirements are reasonably considered, and the 2024 mid-term dividend dividend will be implemented under the condition that the company has profits to distribute for the first half of 2024.
It is worth noting. Yes, the announcement also shows that the total mid-year dividend accounts for no more than 30% of the company's net profit attributable to shareholders of the parent company for the first half year of 2024. When formulating the 2024 profit distribution plan in the future, the distributed mid-term profit distribution factors will be taken into account.
A CIFA reporter noticed that the above proposal has been approved by the board of directors of Xinhua Insurance in full. Xinhua Insurance said that the company will formulate a specific plan for 2024 mid-term profit distribution in accordance with the resolution of the shareholders' meeting, and implement it after implementing corporate governance procedures in accordance with relevant laws and regulations and the relevant provisions of the “Articles of Association”.
According to information, on April 30 this year, at Xinhua Insurance's 2024 first quarter results briefing, some investors asked whether to consider dividends in the middle of this year. Xinhua Insurance responded at the time that the company has always paid attention to and listened to investors' suggestions, and placed emphasis on providing investors with reasonable investment returns, while taking into account the company's long-term interests, the overall interests of all shareholders, and the company's sustainable development. The company will further reduce costs and increase efficiency, and determine the level of dividends by comprehensively considering factors such as shareholder returns, the company's solvency, and business development.
It was the first insurance company to follow up after the new “National Nine Rules”. Previously, many banks followed suit
A Financial Services Association reporter noticed that Xinhua Insurance is the first listed insurance institution to disclose and follow up on mid-term dividends since the release of the new “National Nine Rules.”
On April 12 of this year, the State Council issued “Certain Opinions on Strengthening Supervision and Risk Prevention and Promoting High-Quality Development of the Capital Market” (the new “National Nine Rules”), which proposes to strengthen the supervision of cash dividends of listed companies, enhance the stability, sustainability and predictability of dividends, and promote dividends more than one year, pre-dividends, and pre-Spring Festival dividends.
Prior to this announcement by Xinhua Insurance, the five major state-owned banks of the Industrial and Commercial Bank, Agricultural Bank, Bank of China, China Construction Bank, and Bank of Communications, as well as many urban commercial banks, such as Bank of Lanzhou and Bank of Jiangsu, had announced plans to implement mid-term dividends in 2024. Among them, the four major banks of China Construction Engineering and Agriculture said that under the condition that profits can be distributed in the 2024 half year, the 2024 interim dividend will be implemented, and the total mid-year dividend will account for no more than 30% of the net profit attributable to shareholders of the parent company achieved in the 2024 half year.
An industry insider said earlier in an interview with the Financial Services Association that the increase in the frequency of dividends by listed banks is certainly a positive sign from the perspective of the market and investors. On the one hand, more frequent dividends can improve the efficiency of the use of funds and increase the attractiveness of investments for investors seeking stable returns on cash flow. On the other hand, this approach also strengthens the market's confidence in banks' profitability and financial health, as it means that banks have sufficient profits and cash flow to support multiple distributions.
It is worth mentioning that before the release of the new “National Nine Rules”, Ping An of China, which is also a listed insurance company, had implemented mid-term dividends for many years and was recognized by many institutions.
Dongwu Securities pointed out in a recent research report on China's Ping An that looking ahead to 2024, the company proposed that it will maintain the frequency of cash dividends (twice a year), share the company's high-quality development results with investors, and effectively enhance investors' sense of acquisition.