PRC - Dental equipment and supplies distribution
The Group acquired a 60% stake in Shenyang Maotai Q & M Medical Equipment Co., Ltd in January 2016, a dental equipment and supplies distribution company to further strengthen the Group’s presence in the dental equipment and supplies distribution segment in PRC. The Group acquired the remaining 40% in October 2016.
Financial Review for FY2016
Dental and Medical Clinics: The Group’s revenue increased by 21% to $118.7 million, from $97.8 million in FY2015. The $20.9 million increase was due to higher revenue from existing dental outlets in Singapore and additional acquisitions of dental outlets in Singapore and PRC.
Dental equipment and supplies distribution: The Group’s revenue increased by 43% to $13.7 million from $9.6 million in FY2015. The $4.1 million increase was mainly due to revenue contribution from the acquisition of Shenyang Maotai Q & M Medical Equipment Co., Ltd. in January 2016.
Non-financial Success …show more content…
Its high dividend payout is suitable for the bird-in-the-hand type of shareholders who prefers a steady flow of income, such as retired people.
2. A company’s board of directors has the final say in deciding whether to pay its shareholders dividends or not. Usually a company issues dividend to their shareholders when they have a cash surplus or when there are no positive NPV projects. Most companies offer dividends to make their shareholders happy.
However, a company can also choose to retain their net earnings and invest them into areas with potential growth opportunities, instead of issuing dividends to its shareholders. This decision affects their shareholder’s wealth as there will be a cut in the dividend amount issued to them. Therefore, it is important that a company adopts the right dividend policy to cope with the issues of a cut in shareholder’s