China's Minbai Shares Drop After Retailer's Actual Controller Is Seized Amid Dividend Turmoil
Dou Shicong
DATE:  Dec 11 2019
/ SOURCE:  yicai
China's Minbai Shares Drop After Retailer's Actual Controller Is Seized Amid Dividend Turmoil China's Minbai Shares Drop After Retailer's Actual Controller Is Seized Amid Dividend Turmoil

(Yicai Global) Dec. 11 -- Minbai Shareholding Group's shares have started their second day of declines after the Chinese department store operator said that its actual controller has been detained due to personal reasons.

Minbai Shareholding's [SHA: 600738] stock price dropped 1.8 percent to CNY4.80 (US 68 cents) this morning after sliding over 5 percent yesterday.

Zhu Baoliang is not employed by Minbai so the arrest has no effect on the firm's daily operations, the Lanzhou-based company said in a statement. The reason why he was seized may be related to the company's odd dividend policy, Shanghai Securities News reported, citing an insider.

The firm paid CNY227 million (USD32.3 million) in dividends in the third quarter, which is almost 14 percent more than its net profit in the past three quarters, according to its earnings report. Last year, Minbai delivered three dividends that equaled to almost all of its net profit of CNY1.58 billion (USD224.6 million).

Zhu invested in the struggling firm in 2003 and he and his wife, who is the chairman and legal representative of Minbai, hold a 55.6 percent stake in the company. 

Editor: Emmi Laine

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Keywords:   Minbai Group,Actual Controller