It is a policy of the Board of Directors (“Board”) of Sarawak Consolidated Industries Berhad (“SCIB”) in recommending dividend to allow shareholders to participate in the profits, as well as to retain adequate reserves for future growth.

The declaration of interim dividends and the recommendation of final dividends are subject to the discretion of the Board and any final dividend for the year is subject to the shareholders’ approval.

As SCIB is a holding company, the company’s income, and therefore its ability to pay dividends, is dependent upon the dividends and other distribution receive from the subsidiaries and associates.

The payment of dividends by the subsidiaries and associates will depend upon their distributable profits, operating results, financial condition, capital expenditure plans, debt servicing and other obligations or business plan and applicable laws or agreement restricting their ability to pay dividends or make other distribution.

In addition, changes in applicable accounting standards may also affect the ability of the subsidiaries and associates, and consequently SCIB’s ability, to declare and pay dividends.

The actual dividend that the Board may recommend or declare in respect of any particular financial year or period will depend on factors outlined below as well as any other factors deemed relevant by the Board.

Upon recommendation by the Board, SCIB will, inter alia, take into account various factors as set out below to determine the level of dividend payments:

• Level of cash, gearing and return on equity and retained earnings;

• Expected financial performance;

• Projected levels of capital expenditure and other investment plans;

• Working capital requirements; and

• Any contractual restrictions and / or commitments.

After taking into consideration the abovementioned factors, it is intention of the Board to adopt a Dividend Payout Ratio of at least 30% of the Profit After Tax attributable to the owners of SCIB for each financial year, excluding any unrealised income from adjustments due to accounting policies that are non-cash in nature.

The shareholders should take note that this Dividend Policy merely describes the Company’s present intention and shall not constitute legally binding statements in respect of the Company’s future dividends that are subject to modification at the Board’s absolute discretion.

Thus, dividend payments are not guaranteed, and the Board may decide, at its sole and absolute discretion, at any time and for any reason, not to pay dividends or to pay smaller dividends than SCIB currently propose.

This announcement is dated on 17 June 2020.

Announcement Info