Industrial Urban Development No. 2 (D2D) suffered a loss in the first half of the year, but still paid 87% cash dividend

D2D pays cash dividend at 87% rate

Industrial Urban Development Joint Stock Company No. 2 (Code: D2D) is a unit operating in the field of industrial park real estate investment, and currently owns Nhon Trach 2 industrial park. Although business is losing money in the second quarter of 2024, the company is still planning to pay cash dividends at a rate of up to 87%.

With this plan, each shareholder owning 1 D2D share will receive 8,700 VND in dividends. There are 30.3 million D2D shares in circulation on the market, and it is estimated that the company will have to spend 263 billion VND to pay cash dividends.

Industrial Urban Development Joint Stock Company No. 2 (D2D) suffered a loss in the first half of the year, but still paid 87% cash dividend (Photo TL)

D2D's 2024 dividend payment plan has the highest rate in recent years. Previously, this unit paid cash dividends each year from 30% to 50%, equivalent to 3,000 to 5,000 VND in cash dividends per share.

Currently, Industrial Park Development Corporation (Code: SNZ) owns 57.86% of charter capital at D2D. Therefore, parent company SNZ is expected to earn 152 billion VND.

After the announcement of a dividend payout plan of up to 87%, D2D shares increased from the price range of VND 37,400/share in mid-September to a peak of VND 49,300/share after 2 weeks, equivalent to an increase of more than 31.8%.

Q2 loss drags down first-half 2024 results

Regarding business activities, in the second quarter of 2024, D2D recorded net revenue of only VND 27.5 billion, an increase of 60% over the same period, but the company still lost VND 6.4 billion. This loss has dragged down D2D's entire first-half business results.

In the first 6 months of the year, D2D achieved revenue of 53.2 billion VND, an increase of more than 22.3%. Of which, cost of goods sold accounted for 43 billion, making gross profit only 9.3 billion VND.

Financial revenue dropped sharply from 10.5 billion to only 1.6 billion VND, down 85%. On the contrary, financial expenses recorded a negative 101 million VND.

Notably, business management costs during the period increased sharply, from 11.8 billion to 16.1 billion VND, equivalent to an increase of 36.4%. As a result, D2D had a net loss from business activities of 5 billion VND, a loss after tax of 5.2 billion VND while in the same period, it had a profit of 7 billion.

In terms of asset structure, D2D recorded total capital of VND 1,559.5 billion, not much change compared to the beginning of the year. Of which, the majority of capital is from equity, accounting for VND 931.5 billion. Liabilities accounted for VND 628.1 billion, mostly recorded in the form of long-term unrealized revenue.

Source: https://www.congluan.vn/phat-trien-do-thi-cong-nghiep-so-2-d2d-thua-lo-nua-dau-nam-van-tra-co-tuc-tien-mat-87-post314825.html