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Hai-O may raise dividend payments
Oct 19, 2012
Source: Business Times
 

MULTI-LEVEL marketing company Hai-O Enterprise Bhd may raise its annual dividend payments to shareholders as early as next year.

Hai-O currently has a dividend policy of paying out 50 per cent of net profit to shareholders.

Hai-O group managing director Tan Kai Hee said the company had been profitable for the past seven years and it may consider giving out a higher payout to shareholders.

"During our annual general meeting, some shareholders asked for the company to raise the dividend payout. We may consider doing so in the next one or two years.

 

"The board of directors will discuss this and we may give out higher dividends, barring unforeseen circumstances. However, this is not decided yet," Tan told reporters here yesterday after its annual general meeting.

Meanwhile, Hai-O general manager Teoh Nee Siang said the company, which derives 60 per cent of its revenue from direct selling activities, expects its 95 per cent Indonesian subsidiary P.T. Hai-O Indonesia to start operations within the next one or two years.

"We have been applying for the licence for the past three or four years now. We have to wait for approval from the Indonesian authorities to approve our products ... we see light at the end of the tunnel."

Teoh said the company remains positive on the huge Indonesian market and will bring in some of its products into the republic once the approval is obtained.

Apart from Indonesia, he said the company has no plans at the moment to diversify to other countries and prefer to cautiously solidify its operations in Malaysia and Indonesia.

Meanwhile, group chief financial officer Hew Von Kin said business prospects next year for the company and the industry are good as its customers will continue to buy quality products regardless of the current economic conditions.

"The company has 166,000 members and we continue to rope in new members at a rate of some 2,000 every month. We plan to bring in several new products in the near future," said Hew.

Established in 1975, Hai-O offers complementary medicines, medicated tonic, wellness, beauty and healthcare products and clinical services with principal business in wholesale and retail, multi-level marketing, pharmaceutical manufacturing and Chinese medical clinics.