China New Town announced a surprise first ever dividend

In the original result announcement, China New Town didn't recommend paying any dividend. Although the company is back in black. According to latest announcement, the management has decided to reward the shareholder after meeting with the investment commitee.

If you read The Edge article on the company, management is confident to continue making money with the land sales. So, the act of paying dividend does signal the confidence. Ironically, if the company can make use of the retained cash to keep growing the company, shareholders should be very happy. However, many still looking at dividend as a token that company is performing well.