DANYANG, China, Nov. 9, 2011 /PRNewswire-Asia/ -- Lihua International, Inc. (Nasdaq: LIWA) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, today announced that its Board of Directors has approved the issuance of two special dividends to Lihua shareholders.
The amount of each special dividend will be $0.03 per outstanding share of Lihua common stock on the respective record dates. The first dividend is payable on January 13, 2012 to Lihua shareholders of record on December 31, 2011 and the second dividend is payable on April 13, 2012 to Lihua shareholders of record on March 31, 2012.
The per share amount of each special dividend is calculated on an annualized method based on 5% of the Company's full-year GAAP net income of $38.5 million for the twelve months ended December 31, 2010.
Magnify Wealth Enterprise Ltd., the Company's largest shareholder and an affiliate of Mr. Jianhua Zhu, the Company's founder, Chairman and CEO, has agreed to waive payment of the two special dividends. Accordingly, the two special dividends will be distributed among approximately 16.8 million shares, or 56% of the Company's outstanding common stock as of November 8, 2011, assuming there are no new share issuances prior to each record date."We have generated solid financial growth since our 2009 Initial Public Offering, and have continued to deliver on our strategic and operational objectives while positioning the Company for sustainable growth over the long-term," said Mr. Zhu. "We are making meaningful investments to support Lihua's future growth and deliver accretive top and bottom line growth through organic expansion, as well as new product introductions and new market penetration. We remain committed to generating value for our shareholders and believe that the special dividends are an ideal way to provide an immediate return on investment to our shareholders."