August 20, 2018 / 9:23 AM / a month ago

China Evergrande proposes $2.14 bln dividend payout for 2016, 2017

HONG KONG, Aug 20 (Reuters) - China Evergrande Group , the country’s second-largest property developer by sales, said on Monday the board proposed a dividend of 1.13 yuan, or HK$1.287, per share for the two financial years of 2016 and 2017.

Evergrande shares closed 4.5 percent higher at HK$28 on Monday. The stock gained 30 percent in the past month.

The dividend payout could reach as much as 14.7 billion yuan ($2.14 billion), according to Reuters calculation.

The Shenzhen-based company posted earnings per share of 0.372 yuan and 1.833 yuan in 2016 and 2017, respectively.

Evergrande would declare a special dividend of 50 percent of its accumulated distributable profits since 2016 upon completion of the spin-off re-organisation, the company said in March.

However, the reorganisation is yet to be completed.

The company is seeking a back-door listing in Shenzhen, by injecting almost all of its property assets, held by Hengda Real Estate Group into Shenzhen Special Economic Zone Real Estate & Properties.

Shenzhen Real Estate, which has been suspended from trading since Sept 2016, said last week it was not able to provide details on the re-organization before Aug 14 as planned because it took a longer time to discuss with regulators.

Evergrande is due to announce first-half results on Aug. 28. Earlier this month, the property developer said it expects the core profit to double from a year earlier, buoyed by lower expenses and a rise in the floor area of properties delivered.

($1 = 6.8740 Chinese yuan)

Reporting by Clare Jim; Editing by Sherry Jacob-Phillips

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