(Yicai Global) June 4 -- Gree Electric Appliances will pay less than expected in dividends for last year due to the Covid-19 pandemic.

The ratio between the company's dividends and its net profit will be 29.2 percent instead of the predicted 50 percent, according to calculations based on the Zhuhai-based firm's statement issued yesterday.

The gloom may drag onto this year. It depends on the market environment whether a dividend will be paid for the first half of this year, Chairwoman Dong Mingzhu said in an investor meeting on May 14.

Gree Electric's stockholders approved the plan of granting CNY12 (USD1.70) after-tax per every 10 units to the owners of its more than 6 billion shares, according to yesterday's statement. The company will not convert its capital reserve into share capital or issue bonus shares.

Last December, the home appliances maker's controlling shareholder Gree Group penned an equity transfer agreement to sell a 15 percent stake to Mingjun Investment Partnership, an investment fund backed by Hillhouse Capital Group, with an aim to secure a 50 percent dividend payout ratio.

The pandemic is a natural disaster and the future is unpredictable so companies need to plan prevention and control measures, Dong added.

Last year, Gree Electric's net profit fell 6 percent to CNY24.7 billion (USD3.5 billion) from 2018. Its revenue rose by less than one percent to CNY198.1 billion (USD27.8 billion). Its capital reserve tallied CNY121.7 billion as of March 31.

Gree Electric's stock price [SHE: 000651] rose 2.8 percent to CNY59.62 in the afternoon.

Editor: Emmi Laine