Best World Limited to SGX: Dividends were undeclared due to uncertain China revenue

It clarified that it paid out more than $121m in dividends from 2004 to 2009.

Following SGX queries, Best World Limited addressed its recent undeclared dividends, which were caused by lower revenue contribution from China, where 50% of its total revenue is being sourced.

In an SGX filing, the company explained that it has been paying dividends from 2004 to 2019, amounting to $121m.

“When considering the declaration of dividends, the Board takes into consideration both the short-term business outlook and the short to medium-term working capital requirements of the group,” its statement read.
 
It also said China’s consumers are bearing the brunt of economic uncertainties, which makes them more careful than ever with their spending and are less likely to make the type of purchases we used to see in the pre-Covid years. 

“The company has not been paying dividends in order to preserve cash to primarily support operating cash needs, expansion into new markets, investing in production capabilities, setting up or refurbishing 2-3 Regional Centers per year, current M&A obligations, and capitalising on any M&A opportunities that may arise,” read the statement.