(Yicai Global) Feb. 14 -- Gree Electric Appliances plans to distribute CNY5.5 billion (USD865 million) in dividends, or the equivalent of 70 percent of its first-half net profit last year, to stabilize investor confidence before a new board of directors is appointed.

The Chinese home appliances giant will make an interim payment for 2021 of CNY10 (USD1.57) for every 10 shares held by investors, the Zhuhai-based company said in a statement yesterday. 

It intends to pay out twice a year until 2024, with each annual total amounting to at least half of full-year net profit, the company said on Jan. 24. Based on 2020 earnings, payments could exceed CNY30 billion (USD4.72 billion) over the next three years.

Gree has paid dividends 26 times since it listed on the Shenzhen stock market in 1996. The latest payment should raise the total to nearly CNY90 billion.

The company will elect a new board at a general meeting of shareholders on Feb. 28. Dong Mingzhu, the 68-year-old businesswoman who has been in charge for more than 20 years, is likely to serve another term as chairwoman.

In the first three quarters of 2021, Gree’s net profit jumped 14 percent to CNY15.6 billion on a 9 percent increase in revenue to CNY139.5 billion. The firm expects to release its full-year earnings report on April 30.

Shares of Gree [SHE: 000651] inched 0.4 percent lower today to end at CNY39.76, after see-sawing between an initial gain of 1.4 percent and a decline of as much as 2.2 percent. The stock has been recovering this year after an almost 40 percent drop in 2021 due to slower-than-expected growth.

Editors: Dou Shicong, Emmi Laine, Xiao Yi