(Yicai Global) Feb. 6 -- The Shanghai Stock Exchange (SSE) summoned five listed companies, which have distributed no dividends in recent years, to hold a special briefing session on cash distribution payments yesterday.

Representatives from these companies explained at the briefing why they made no distributions and introduced plans to pay them. SSE sent a supervisory letter to 11 companies that have not distributed any dividends or have paid insufficient ones.

This is the first time that SSE has made listed companies field questions from media and investors face to face on their cash distribution policies and practices. Over 50 people, including the main executives of these five companies, media reporters, well-known industrial analysts, institutional investors and small and medium investors, took part.

The five companies are Yang Quan Coal Industry (Group) Co. [SHA:600348], Harbin Dongan Auto Engine Co. [SHA:600178], Aucma Co. [SHA:600336], Xi'an Typical Industries Co. [SHA:600302], and Luenmei Quantum Co. [SHA:600167]. The main reason they cited for not distributing dividends was poor business performance.

Shanghai-listed companies' cash dividends have steadily increased in recent years, both in quantity and proportion, statistics show, with the annual amount remaining around CNY600 billion (USD95 billion), or over 30 percent of net profits, and the percentage of companies paying dividends about 70.

SSE also sent a supervisory letter to 11 listed companies yesterday. These include three companies that have not distributed dividends for years, as well as eight companies that are in a good position to pay dividends but have either distributed none or done so insufficiently. SSE directed them to prioritize cash dividend payment and truly reward investors with cash.