China Sunsine Chemicals Holdings

[piaopiao]

There is cash inflow from sale of goods and service. How does company decide how much to distribute? You could theoretically distribute all and close shop. That's where accounting and classification comes in.

It seems to me, logically correctly, that profit or loss from treasury treasury shares is not deemed as usual course of business.

There is a difference between profit and cash. Companies Act says cannot declare dividends from the profit of sale of treasury shares.

The profit of China Sunsine, the listco in Singapore, can also include dividend income from its subsidiaries. To distribute the cash in Singapore arising from the sale of treasury shares as dividends, China Sunsine can ask its subsidiaries to declare (more) dividends to increase its profits.

I dont know if Chinese companies can declare dividends from their retained earnings and other reserves or must dividends come from only current year profits.