KHD Pays 20% Cash Dividend Despite Zero Core Revenue in H1 2026

Overview

KHD (Khoáng sản Hải Dương) has announced a 20% cash dividend for the first installment of 2026, payable on September 15, 2026. This comes despite the company reporting zero core revenue in H1 2026, with all profit derived from financial income. The company also disclosed that it no longer meets the criteria to be considered a public company due to its concentrated shareholder structure.

Key Facts

• Dividend rate: 20% cash, equivalent to VND 2,000 per share.
• Record date: August 25, 2026; ex-right date: August 24, 2026.
• Payment date: September 15, 2026.
• Total payout: approximately VND 6.4 billion based on 3.2 million outstanding shares.
• H1 2026 core revenue: zero; financial income reached VND 23 billion, up from VND 500 million in the same period last year.
• H1 2026 pre-tax profit: over VND 22 billion, versus a loss of VND 300 million in H1 2025.
• As of March 31, 2026, the company had 106 shareholders; 7 major shareholders held 91.9% of voting shares.
• KHD no longer meets public company criteria (less than 10% of voting shares held by at least 100 non-major shareholders).

What Happened

CTCP Khai thác, Chế biến khoáng sản Hải Dương (KHD) announced on its corporate disclosure that the record date for the first cash dividend of 2026 is August 25, 2026. The dividend rate is 20%, meaning shareholders receive VND 2,000 per share. The company will disburse approximately VND 6.4 billion on September 15, 2026.

This follows a 25% cash dividend for the second installment of 2025, paid in late May 2026, bringing the total 2025 dividend to 30% in cash. Despite the generous payouts, KHD reported no core revenue in H1 2026. The company’s income statement shows financial income of over VND 23 billion, primarily from dividends and profit sharing from subsidiaries, which accounted for more than VND 22 billion. After expenses, KHD recorded a pre-tax profit of over VND 22 billion, a sharp turnaround from a loss of VND 300 million in the same period last year.

Additionally, on April 2, 2026, KHD disclosed that it no longer meets the conditions to be considered a public company under current regulations. As of March 31, 2026, the company had 106 shareholders, with 7 major shareholders holding 91.9% of voting shares, leaving only 8.1% held by 99 other shareholders. This fails the requirement that at least 10% of voting shares be held by 100 or more non-major investors.

Market Context

KHD trades on the UPCOM exchange. The stock last closed at VND 22,000 on August 10, 2026, with extremely thin liquidity due to the concentrated shareholder base. The company’s dividend yield is attractive on paper (20% per installment), but the lack of core revenue and the delisting risk from public company status raise questions about the sustainability of such payouts. The broader Vietnamese mining sector has seen mixed performance, but KHD’s situation is unique given its reliance on financial income rather than operational cash flow.

Strategic Significance

For long-term investors, KHD’s case highlights the risks of investing in companies with concentrated ownership and opaque business models. The company’s ability to pay dividends is currently dependent on income from investments, not from its core mining operations. This raises concerns about the long-term viability of its dividend policy. Furthermore, the loss of public company status could lead to delisting from UPCOM, reducing liquidity and making it harder for minority shareholders to exit. Investors should closely monitor whether KHD can restore core revenue or if it will continue to rely on financial engineering to sustain dividends.

What to Watch

• KHD’s Q3 2026 earnings release to see if core revenue returns.
• Any regulatory filings regarding the company’s public company status and potential delisting.
• Changes in the shareholder structure that might affect the 10% free-float requirement.
• Future dividend announcements and whether they are supported by operational cash flow.
• Trading volume and price action on UPCOM for signs of liquidity improvement or deterioration.