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Individual shareholders to enjoy record bonus
(Xinhua)
Updated: 2007-03-12 11:03
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Individual shareholders to enjoy record bonusIndividual shareholders of Yunnan Chihong Zinc & Germanium Co will enjoy the biggest bonus in the history of China's A-share market after the company's net profit per share jumped by 692 percent and earnings per share topped 5.3 yuan (68 US cents) in 2006.

Under the company's generous profit sharing scheme, shareholders will receive 10 bonus shares and a pre-tax 30-yuan cash bonus for every 10 shares. A total of 195 million bonus shares will be issued and 585 million yuan paid out.

Henan Shenhuo Group Co gave shareholders a huge bonus in July 2005 when it offered 10 shares and a pre-tax 15-yuan cash bonus for every 10 shares.

Many other Chinese companies have joined the two record-holders in offering substantial bonuses. In the light of last year's record corporate earnings, approximately 120 companies listed on the A-share market plan to offer cash bonuses.

Insiders say that the generosity might be inspired by national policies encouraging profit sharing and, more importantly, by companies' desire to establish good relations with their shareholders now that share reforms have been completed.


(For more biz stories, please visit Industries)
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