David Webb criticizes BAUHAUS INT'L for buying properties but not distributing dividends

BAUHAUS INT'L (00483.HK) recently announced the purchase of a unit on the 8th floor of Tower 12 in Laguna City, Kwun Tong, for over HKD 8.3 million, to be used as employee accommodation. David Webb, an independent stock commentator and the second-largest shareholder, publicly criticized the company in an open letter to Chairman Tong Shuwen, who holds 58.9% of the shares, for preferring to buy property rather than distribute dividends, and strongly demanded that BAUHAUS terminate the transaction even if it means "paying a penalty."

In his open letter, he mentioned that as of the end of March this year, the group's net cash was HKD 97.1 million, accounting for 55% of tangible net assets, with an annual profit of HKD 11.7 million, yet no dividends were distributed. He noted that since the interim period ending September 2022, the company has not paid any dividends, describing it as "disgraceful."