Financial performance of industrial enterprises on the stock market in Vietnam - 20

After indirectly controlling more than 21% of the capital in Tribeco (TRI) of Kinh Do shareholders, TRI continued to implement Kinh Do's replication model, establishing Tribeco North and Tribeco Binh Duong. And KDC invested 10.5 billion VND in Tribeco Binh Duong), NKD contributed 15% to Tribeco North. Thus, when a subsidiary is established, there will be investment and capital contribution from other companies in the system.

Then TRI participated in long-term financial investment and TRI participated in buying shares of NKD and Kido. Thus, participating in becoming a major shareholder of Kinh Do in KDC, NKD, TRI... pushed these companies to spend large sums of money to invest in other companies, even companies in their own "group".

TRI is a stock that has been put under control due to losses. The reason is also due to the provision for financial investment of up to 13 billion VND out of the total investment that needs to be set aside of 20 billion VND (of which 17 billion VND is invested in Kinh Do). This shows the reality of listed companies, which is that few

Focus on investing capital in production and business, but raise capital to contribute capital to establish another company, and then use that company's capital to continue to establish, contribute capital and even invest in other company's stocks.

2.2.3. Evaluation of financial performance of enterprises on the stock market in Vietnam.

2.2.3.1 General assessment of SWOT on the stock market of the enterprise.

Strengths (S): Vietnamese industrial enterprises are enterprises operating in key sectors of the economy. Unlike the service and financial sectors, the production and business activities of industrial enterprises are always more stable than other sectors and are less affected than other sectors when the economy enters recession. Therefore, they are more favored by investors in the stock market. This is the biggest strength of industrial enterprises in the stock market. In addition, production and business activities always require large capital sources for investment and development, so industrial enterprises can more easily and effectively use the capital mobilized in the stock market than other sectors.

Industrial enterprises are enterprises operating in key and spearhead sectors of the economy, the market of enterprises

The industrial sector is very large, so the revenue of industrial enterprises is often much higher than that of other industries, which is also an advantage for enterprises when participating in the stock market. On the other hand, industrial enterprises are always interested in training programs for engineers and technical workers for enterprises, which is why the labor force of Vietnam's industrial sector is always abundant, low labor costs lead to high profits.

Weaknesses (W): Talking about the weaknesses of Vietnamese industrial enterprises when participating in the stock market, first, they do not have much experience in the stock market, so when participating in the stock market, they will have less competitive advantages than enterprises operating in the financial sector. Second, the ability to adapt to changes and fluctuations in the market is slower than that of financial enterprises. Third, they have not yet developed a specific business strategy when participating in the stock market, so many enterprises have not been successful in issuing shares to the public or have issued shares but have not yet developed a plan to list on the stock market. Fourth, the capital scale is small and medium, so many enterprises do not meet the conditions to list on the stock market.

Opportunity (O): The Vietnamese stock market has only been established and developed for more than 10 years. Recently, due to the impact of the economic recession, the market has been severely affected. However, after the recession period, the market will recover. This can be seen as a good opportunity for industrial enterprises to participate in the stock market. The stock market helps enterprises easily attract large capital sources for production and business activities. This is an opportunity to expand production and invest in technological equipment innovation.

Risk (T): When participating in the stock market, industrial enterprises will be at risk of sharing control of the company, there is a high risk of information about the enterprise being leaked, especially enterprises will have to deal with very large risks when the stock market falls into recession.

2.2.3.2 Evaluation of financial performance of industrial enterprises on the stock market in Vietnam

a. Results achieved.

Along with the growth and development of the stock market, the financial activities of industrial enterprises on the stock market have achieved significant results, marking an important step in the development process of each enterprise. Through financial activities on the stock market, enterprises in general and industrial enterprises in particular have attracted a significant source of capital for their business activities, and at the same time, securities trading activities are also considered a potential business activity for each enterprise. Some of the main results of financial activities of industrial enterprises on the stock market can be summarized as follows:

Firstly, the issuance of shares to the public is a basic source of capital mobilization for industrial enterprises. Capital mobilization through the issuance of shares to the public has helped industrial enterprises expand their operating market, gradually increase revenue, increase production and business capacity and position in the market, increase income and create more jobs for workers. After equitization, through the issuance of shares to the public, most industrial enterprises have larger equity capital (increased by 122.9%), the capital growth rate is 2,422 billion VND compared to before the IPO, this is a condition to meet the needs of technological innovation, equipment, and product quality improvement to provide the market with higher quality products, suitable for market demand. Through the process of issuing shares to the public, industrial enterprises have obtained a capital surplus of nearly ten thousand billion VND. Some industrial enterprises with large charter capital not only have financial advantages, but can also easily gain a large-scale issuance profit by selling shares at a higher price than the par value. On the other hand, with a large charter capital, it also creates conditions for industrial enterprises to implement the ability to issue additional shares. With such a relatively large capital surplus value, it has helped enterprises add to the development fund to carry out production and business, creating breakthroughs for the enterprise.

Thus, in 2003, the capital surplus due to the difference in the selling price of shares to the outside of enterprises reached 42.6 billion VND, of which the largest was Vietnam Dairy Products Joint Stock Company. When issuing shares to the public for the first time with a quantity of 1.827 million shares, the Company received a capital surplus of 29.2 billion VND.

Chart of surplus capital of industrial enterprises

8000

7000

6000

5000

6723

5735

4000

3000

2000

1000

0

2659

43

81

242

105

2003 2004 2005 2006 2007 2008 6M/2009

billion VND, accounting for 69% of the surplus capital of industrial enterprises in 2003. In 2004, the surplus capital of industrial enterprises was 80.8 billion VND, of which the enterprise with the largest surplus capital in the year was Tuong An Oil Joint Stock Company, earning 20.4 billion VND in surplus capital.

Billion VND

Figure 2.47: Chart of capital surplus through public offering of shares of industrial enterprises over the years.

Source: [13], [27], [28]

In 2005, the surplus capital of enterprises increased to 242.4 billion VND, of which the largest was the Petroleum Drilling and Services Joint Stock Company, with a total number of shares issued to the public of 28.851 million shares, the Company earned 116.3 billion VND due to the difference in stock prices. In 2006, the surplus capital of enterprises increased dramatically, reaching 2,659 billion VND, of which the enterprises with the largest surplus capital were the Vietnam Oil and Gas Insurance Joint Stock Corporation, earning 1,794 billion VND, the Vietnam Electric Cable Joint Stock Company, earning 278.5 billion VND, the Hanoi Alcohol and Wine Joint Stock Company, earning 121 billion VND, the Cao Son Coal Company, earning 120 billion VND, and the Coc Sau Coal Joint Stock Company, earning 106 billion VND.

In 2007, the surplus capital of industrial enterprises was 6,722.6 billion VND, of which the largest was PetroVietnam Fertilizer and Chemicals Joint Stock Company, with the number of shares sold to the outside being 128,626,600 shares, starting price was

50,000 VND/share, average winning price: 54,403 VND/share, total surplus capital due to price difference is 6,722 billion VND. The process of issuing additional shares to the public by enterprises is also common and enterprises also gain a relatively large amount of surplus capital.

In 2008, the surplus capital of industrial enterprises reached 5,734.9 billion VND, down from 2007. In the first six months of 2009, due to the small number of enterprises issuing securities (6 enterprises conducting initial public offerings and 12 enterprises issuing additional shares), the number of enterprises issuing securities increased by 1.5% compared to 2007.

bonds), with a total of 3,727.4 billion VND, so the surplus capital of industrial enterprises only reached 105 billion, accounting for 3% of the surplus capital in 2008. Second, the use of surplus capital obtained from the stock market has helped enterprises expand their business networks, consolidate and develop their businesses, especially in the past 2 years has helped many industrial enterprises.

industry stands firm amid tight monetary policy and economic uncertainty.

The total surplus capital invested by enterprises in purchasing equipment and expanding production and business from 2003 to June 2009 was VND10,911 billion, accounting for 70% of the surplus capital obtained from the stock market. It is thanks to the effective use of this surplus capital that enterprises have been able to increase market share, revenue and profits in recent years.

Most businesses use the surplus capital obtained from the stock market for the right purpose. Through this capital, businesses have increased their charter capital, helping many businesses meet the capital scale requirements to list securities on the two exchanges.

The use of surplus capital of enterprises must comply with the regulations of the Government and competent agencies. According to the announcement of the State Securities Commission sent to public joint stock companies signed on April 11, 2007 and Circular 18/2007 of the Ministry of Finance dated March 13, 2007, the surplus capital from the issuance of shares to implement investment projects can only be used by the company to supplement charter capital after three years from the time the project is completed and put into operation and use. In case of surplus capital due to the difference between the selling price and the par value of additional shares issued, the company can only use it to supplement charter capital after one year from the end of the issuance. This regulation has helped protect the surplus capital source, aiming at the long-term development goals of enterprises. After this regulation, the use of surplus capital by enterprises has been controlled much more strictly than before.

Hoa Phat Group (HPG) conducted its most recent private placement in May 2008, issuing 8,260,000 shares to two international organizations, Bank Invest and Credit Suisse, earning VND446.16 billion in capital surplus. HPG's total capital surplus to date is VND1,761 billion. HPG invested all of its capital surplus in a number of industrial production projects such as the Hoa Phat Iron and Steel Complex with a capacity of 350,000 tons/year, the Hoa Phat Cement Plant (phase 1) with a capacity of 1 million tons/year and increased working capital, with absolutely no investment in securities.

Without surplus capital, HPG's capital costs would have been pushed up very high because in the second half of 2008, when HPG accelerated construction and investment projects, interest rates on loans increased.

Southern Battery and Storage Joint Stock Company (PAC) has issued two more shares, raising VND100 billion to invest in Nhon Trach Battery Factory. The company has purchased land, hired design consultants and prepared for construction. The remaining surplus capital of VND69 billion was deposited by PAC with an interest rate of 17%/year. Saigon Garment Production and Trading Joint Stock Company (GMC) focused all of the VND45 billion surplus capital on the main production of FOB goods.

Third, financial activities on the stock market of enterprises have contributed to improving the production and business efficiency of enterprises, the ratio of liabilities to total equity tends to decrease compared to before equitization, demonstrating the ability to gradually become financially independent. Compared to the time before equitization, most enterprises have increased revenue compared to the time before equitization, along with the increase in equity, the increase in revenue shows that the production and business activities of enterprises have been expanded after equitization and this is one of the important goals that industrial enterprises aim for.

Table 2.5: Revenue of 100 industrial enterprises.

Business type

SL	Revenue (billion VND)			Revenue/Total Assets Ratio product
	After CPH	Before CPH	Difference deviated	After CPH	Before CPH	Difference deviated
Mechanical	14	788.4	769.9	18.5	0.98	1.15	-0.17
Electricity	4	2299.9	1979.3	320.6	0.16	0.14	0.02
Chemical	16	2625.7	1850.8	774.9	2.24	2.07	0.17
Extractive	2	211.4	91.4	120	4.37	3.26	1.11
Textile	27	7683	5988.4	1694.6	1.49	1.16	0.33
Food consumption	33	14192.4	11373.5	2818.9	1.47	1.54	-0.07
Steel	4	538.4	1756.1	-1217.7	0.98	3.97	-2.99
CN Construction	2	510.7	551.9	-41.2	0.57	0.65	-0.08
Add	100	28849.9	24361.3	4488.6	0.89	0.84	0.05

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• Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015 zt2i3t4l5ee zt2a3gsnon-credit services, joint stock commercial bank zt2a3ge zc2o3n4t5e6n7ts At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income. Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015 Unit: Billion VND 140 120 100 80 60 40 20 0 63.3 80.34 89.29 110.08 131.99 2011 2012 2013 2014 2015 Profit before tax (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services". 2.2. Current status of non-credit service development at BIDV Tien Giang. 2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times. Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,... 2.2.1.1. Payment services: In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc. Chart 2.3. Net income from payment services in the period 2011-2015 Unit: Million VND 6000 5000 4000 3000 2000 1000 0 3922 4065 4720 5084 5324 2011 2012 2013 2014 2015 Net income from payment services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment. 2.2.1.2. Treasury services: BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17]. Chart 2.4. Net income from treasury services in the period 2011-2015 Unit: Million VND 350 300 250 200 150 100 50 0 105 122 309 289 279 2011 2012 2013 2014 2015 Net income from treasury services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services. 2.2.1.3. Guarantee and trade finance services: BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance. Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015 Unit: Million VND 14000 12000 10000 8000 6000 4000 2000 0 5193 5695 2742 3420 8889 3992 11604 12206 5143 5312 2011 2012 2013 2014 2015 Net income from guarantee services Net income from Trade Finance (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area. are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future. 2.2.1.4. Card and POS services: As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services. In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system. Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments. Chart 2.6. Net income from card services in the period 2011-2015 Unit: Million VND 3500 3000 2500 2000 1500 1000 500 0 687 1023 1547 2267 3104 2011 2012 2013 2014 2015 Net income from card services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25]. Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area. Unit: Machine STT Bank name Number of ATMs Cumulative number of ATM cards POS machine 1 BIDV Tien Giang 23 97,095 22 2 BIDV My Tho 7 21,325 0 3 Agribank Tien Giang 29 115,743 77 4 Vietinbank Tien Giang 16 100,052 54 5 Dong A Tien Giang 26 97,536 11 6 Sacombank Tien Giang 24 88,513 27 7 Vietcombank Tien Giang 15 61,607 96 8 Vietinbank - Tay Tien Giang Branch 6 46,042 38 (Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21]) Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6). div.maincontent .content_head3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s1 { color: black; font-family:"Courier New", monospace; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; 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Source: [13], [27], [28] Thus, the total revenue of 100 enterprises increased by 4,488.6 billion VND (up 18.4%), of which 94% of enterprises increased revenue and the proportion of revenue over

Total assets increased by an average of 0.05%.

The total pre-tax profit of 100 enterprises was 1,904.3 billion VND, an increase of 808.1 billion compared to before equitization. Most enterprises were profitable and their pre-tax profit increased compared to before equitization. Some textile and garment enterprises had a loss of 4.5 billion VND before equitization. However, after equitization, the operations of textile and garment enterprises were significantly effective and began to make a profit. The total profit of textile and garment enterprises was 92.1 billion VND. Enterprises in the Electricity industry are enterprises with

The highest increase in pre-tax profit was recorded in the electricity sector. Before equitization, pre-tax profit of electricity enterprises only reached 149.6 billion VND. After equitization, it reached 645.3 billion VND, an increase of 495.7 billion VND, more than 3 times higher than before equitization. Enterprises operating in the field of food consumer goods production also achieved relatively high profits, much higher than before equitization.

Table 2.6: Profits of 100 industrial enterprises

Business type

SL	Profit before tax (billion VND)			Return on Equity
	After CPH	Before CPH	Difference	After CPH	Before CPH	Difference
Mechanical	14	20.6	16.1	4.5	10.5	9.89	0.61
Electricity	4	645.3	149.6	495.7	10.08	2.89	7.19
Chemical	16	58.2	103.6	-45.4	13.17	28.12	-14.95
Extractive	2	1.9	0.3	1.6	16.86	2.93	13.93
Textile	27	92.1	-4.5	96.6	8.4	-0.46	8.86
Food consumption	33	1065.9	810.6	255.3	25.1	27.4	-2.3
Steel	4	2.9	5.7	-2.8	-2.18	3.41	-5.59
CN Construction	2	17.4	14.8	2.6	10.35	14.91	-4.56
Add	100	1904.3	1096.2	808.1	14.91	11.1	3.82

Source: [13], [27], [28]

The return on equity of industrial enterprises is relatively high. After equitization, 62.5% of enterprises have a higher return on equity than before, of which the largest are enterprises operating in the mining industry. Before equitization, the return on equity was only 2.93%, after equitization, this rate increased to 16.66%. Next are enterprises operating in the textile and garment industry. If before equitization, the return on equity was negative, after equitization, this rate reached 8.4%.

Fourth, After issuing shares to the public, industrial enterprises have promoted procedures to list shares. As of June 30, 2009, 132 industrial enterprises had listed shares on the stock market. Shares of industrial enterprises were bought and sold in large quantities by domestic and foreign investors on the market. In particular, shares of PetroVietnam Fertilizer and Chemicals Joint Stock Company and Vietnam Dairy Products Joint Stock Company always had large trading volumes on the market and had a great influence on the value of the VN-Index. The implementation of offering

Providing information as prescribed by the State Securities Commission is seriously implemented by enterprises, initially creating trust for investors.

Fifth, the dividend and bond payment activities of enterprises have tried to maintain a relatively fixed cash dividend payment rate. Dividend reduction is something that enterprises always avoid. Therefore, even when profits increase, when deciding to increase the dividend level, enterprises are very hesitant. Because increasing the dividend payment rate will put pressure on the Board of Directors of the enterprise, so maintaining a fixed dividend payment rate to avoid sudden cuts in the following years. On the other hand, enterprises with stable dividend payment rates over the years are often more highly appreciated by investors. If comparing the dividend payment rate of enterprises from 10% - 20% with the interest rate of banks and inflation, this is an acceptable rate for investors. Moreover, when enterprises issue shares at an issue price of 2-3 times the par value, a simple calculation shows that the actual dividend rate is only about 3% - 10%. Therefore, it is reasonable for businesses to maintain a retention amount of 40%-60% to ensure attractiveness to investors and ensure the development and growth of the business.

In the early years of the stock market, listed industrial enterprises only paid dividends in cash. But since 2006, enterprises have paid more attention to combining cash dividends with stock dividends, a combination that is highly appreciated by investors.

It can be said that industrial enterprises are increasingly receiving more attention from investors regarding dividend payment policies, which demonstrates the sustainable development of the industrial enterprises themselves. In particular, enterprises have become aware of the advantages and disadvantages of each form of dividend payment (in cash or in shares) and have flexibly combined them to suit market trends.

Sixth, it can be said that the securities investment activities of industrial enterprises on the stock market have made significant progress with the number of industrial enterprises participating increasing over the years, from the purpose of using idle capital to invest in securities to increase efficiency to the purpose of buying shares to penetrate and take control of competing enterprises as well as enterprises related to their production and business activities. However, besides the successful enterprises in