Bold: 30 percent of net profit will be distributed to shareholders as dividends www.zgm.mn
Tumen Shuvuut JSC, listen on the Mongolian Stock Exchange (MSE), has recently presented its quarterly financial performance. Since its establishment in 2004, Tumen Shuvuut has been con-stantly expanding its operations in egg production and poultry farm-ing. The company launched its IPO on January 16. The Official Gazette sat down with Bold.J, Executive Director of Tumen Shuvuut JSC, to discuss about the IPO and the company’s financial performance.
Shall we start from the spending of the money raised in initial public offering?
-As of today, our company has invested about MNT 13 billion of which, MNT 10 billion has been raised from the IPO. The company also spent the money, including the MNT 3 billion from accumulated net income on four major projects.
-According to the recent announcement, Tumen Shuvuut reported a 52 percent increase in net profit. How will the company benefit from the gain?
The economic situation of Mongolia was relatively stable in 2019, reflecting on our company’s performance. The company’s net profit reached MNT 2.6 billion in 2018 and MNT 2.9 billion in the third quarter of 2019. We are aiming to increase this amount to MNT 4 billion by the end of 2019. The net income will be spent on improving the company’s production. In the framework of the Tumen Shuvuut2 project, we’re planning to build factories to raise broiler chickens for harvesting meat and produce organic fertilizers. Also, 30 percen of the net profit will be distributed to shareholders as dividends after paying taxes. The shareholders will finalize the date in its annual meeting after the final financial performance is released.
-Mongolia is now providing its domestic demands and reduced its reliance on importing eggs. What kind of changes has been seen in the market?
-According to a study, Mongolians consume 300 million eggs annually. It shows about 100 egg consumption for each person. However, its lower than the world average. Mongolia imports 50 percent of its egg consumption from Russia. We are working to improve domestic production, for an egg is a food that should be used freshly.
-A massive waste has been made, followed by the egg factory. What are the measures that the company is taking?
We are using chicken manure as an organic fertilizer since it has a lot of advantages. We also use egg peel for animal feed.