Fangda Carbon, which has not paid dividends for three years, announced that it will continue to buy huge wealth management products!

Last night, Fangda Carbon announced a major financial decision: it plans to use no more than RMB 4 billion to purchase wealth management products.

This decision has attracted widespread attention in the market, especially when the company has not paid cash dividends in the past three years, and at the same time has a cash account of 6.19 billion yuan.

“Stock trading” is addictive

Looking at past history, Fangda Carbon is actually already a veteran of spending large sums of money to make “investments.”

From 2019 to 2021, the company announced plans to use no more than 6 billion yuan of its own idle capital to purchase wealth management products. By 2023, Fangda Carbon further plans to use no more than 3 billion yuan for financial management, while at the same time, no more than 2 billion yuan of capital is planned to be used for securities investment.

Although they love to “play,” they don't “cook.”

Looking back at the results, Fangda Carbon actually still has two brushes in this area. According to the company's 2023 annual report, the company achieved an investment income of 152 million yuan in the year, of which the investment income of transactional financial assets during the holding period was 14.53 million yuan.

Looking ahead, we achieved an investment income of 224 million yuan in 2022, of which the investment income of transactional financial assets during the holding period was 4.584 million yuan;

An investment income of 413 million yuan was achieved in 2021, of which the investment income of transactional financial assets during the holding period was 2,814,800 yuan.

As of the end of the 2023 reporting period, the total financial assets held by Fangda Carbon reached 1,297 billion yuan, including stocks, private equity funds and other types of assets, amounting to 587 million yuan, 309 million yuan and 401 million yuan respectively.

The company's financial position also showed strong growth. The 2023 annual report shows that Fangda Carbon's monetary capital reached 6.19 billion yuan, an increase of 96% compared with the previous year.This increase was mainly due to an increase in investment payments received by the company.

Although Fangda Carbon did not propose a cash dividend plan from 2021 to 2023, it is worth noting that the company achieved profits every year during these three years.In 2023, Fangda Carbon will use existing repurchase rules to exempt cash dividends. The company used 280 million yuan of its own capital to complete the share repurchase. According to the relevant guidelines of the exchange, this repurchase amount can be regarded as a cash dividend and included in the calculation of the relevant ratio of the annual cash dividend.

Through this method, Fangda Carbon's cash dividend ratio in 2023 reached 67.27%. This is calculated based on the net profit (416 million yuan) attributable to shareholders of listed companies in the company's 2023 consolidated statement. Since its listing, Fangda Carbon has paid cash dividends only 7 times, with a cumulative dividend amount of 5.987 billion yuan.

Some stock trading friends “planted”

In fact, all Fangdae companies prefer “stock trading.” In addition to Fangda Carbon, its subsidiaries such as ZTE Commercial and HNA Holdings also have certain equity investments.

Among them, Fangda Special Steel only broke the “loss of money” news.In just one quarter, the wealth management products purchased by Fangda Special Steel lost 120 million yuan.

According to reports, in November 2022, Fangda Special Steel used 430 million yuan of idle funds to entrust financial management and entrust management to CITIC Trust. In December, the trust project invested 787.22 million H shares of Sunshine Insurance, at HK$5.83 per share, with a total investment of HK$459 million. In September 2023, Fangda Special Steel applied for redemption of 11 million trust shares, recovered capital of 8.031 million yuan, and reduced the trust share to 419 million shares.

In the first quarter of 2024, the net value of trust products declined due to fluctuations in Sunshine Insurance's stock prices.It fell from 314 million yuan on December 31, 2023 to 195 million yuan on March 31, 2024, with a loss of 120 million yuan, affecting Fangda Special Steel's net profit for the quarter.Despite this, Fangda Special Steel is still optimistic about Sunshine Insurance's business growth and value creation capabilities, and does not plan to sell this part of its assets.

Fangda Special Steel also holds shares in two A-share companies, Furi Electronics and Artes. Furi Electronics lost 690,000 in investment. Artes sold it in 2023.

Like its “brother” Fang Da Carbon, Fangda Special Steel has invested heavily, but the dividends in the past two years have been so stubborn.

In 2023, the company achieved net profit of 689 million yuan, undistributed profit at the end of the period of 2,122 million yuan, and a monetary fund balance of 6.045 billion yuan. Following regulatory inquiries from the Shanghai Stock Exchange, Fangda Special Steel announced a dividend of 233 million yuan on March 29, 2024. Previously, since its listing in 2003, Fangda Special Steel achieved a cumulative net profit of 17.672 billion yuan and a cumulative cash dividend of 12.590 billion yuan. The cash dividend ratio in 2021 was as high as 87.60%.