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⏲️ Dividends Rise, But When Paid?
Temu In Mongolia
Khulan MendsaiKhan
February 03, 2025 • Estimated Reading Time: 10 minutes
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Happy New Month! From today, average night temperatures drop to -30°C, and daytime temperatures reach -20°C. The endless winter miracle of Mongolia continues. Stay warm! ❄️
Today’s highlights in 3 sentences…
🤳🏻 AI surveillance cameras are now active around UB.
🤨 Dividends are being issued.
🤑 You can now shop from Temu in Mongolia.
Buckle Up!
MARKET
MSE: BDSec (BDS), a securities company, opens a new branch in Singapore.
KHAN: Khan Bank allocates 34% of its ₮183.3 billion IPO fundraising to green financing in 2024.
GOV: Ulaanbaatar integrates AI technology into its citywide surveillance system.
⏲️ Dividends Rise, But When Paid?
Public companies in Mongolia show growth in dividend payouts, with both the number and value of dividends increasing each year. However, investors face longer waiting periods to receive their payouts, raising concerns about the effectiveness of these dividends as an investment tool.
✅ Shorter The Better
In 2022, 41 companies listed on the Mongolian Stock Exchange (MSE) declare dividends from their 2021 profits. By September of that year, 21 of these companies distribute dividends, taking an average of 108.2 days from the announcement to the payout. In 2023, the situation worsens. Forty-three companies announce dividend payments, but by January 2024, only 25 of them process payments through the Mongolian Central Securities Depository.
These companies take an average of 115 days—about 4 months—to distribute dividends, extending the waiting period by 7 days compared to the previous year.
☝️ The Consequences of Delay
The prolonged wait for dividends has tangible drawbacks. Investors miss opportunities to reinvest their dividends and earn double returns by putting their money into other investments. Furthermore, the uncertainty of when dividends will arrive makes it difficult for investors to plan their spending, causing unnecessary financial strain.
🤕 A Closer Look at the Numbers
Between 2013 and 2024, 386 dividend decisions occur, but only 78 companies make these decisions, representing just 45% of all public companies. Many of these companies distribute dividends only once in their history. Despite this, public banks contribute significantly to the rise in total dividend payouts. In 2024, the total dividend amount reaches ₮974 billion—1.5 times higher than in 2023 and 6.7 times more than in 2016.
However, the delays in dividend distribution undermine the purpose of these payouts as a financial leverage tool. Without a clearly defined payout date, dividends fail to deliver the expected benefits for investors. The Financial Regulatory Commission (FRC) recognizes this issue and pushes for a more transparent process, urging companies to clearly announce the final date for dividend payouts.
While Mongolia’s public companies increase dividend payouts, the growing delays in distribution hinder the potential advantages for investors. The government’s call for more transparency in dividend timing is a necessary step to ensure that these payments remain an effective and reliable source of income for shareholders.
🛍️ Temu In Mongolia
Temu, an international platform from Pinduoduo, China’s largest trading platform, officially launches in Mongolia. Collaborations with MN Post, UBCab Express, China Post, and Tonda Global bring this global platform to the Mongolian market.
Expands to 🇲🇳
The partnership between TEMU, MN Post, and UBCab Express revolutionizes Mongolia's e-commerce infrastructure. By connecting with TEMU’s systems, Mongolia can now track shipments in real-time and offer a seamless shopping experience.
🚘 UBCab Express plays a crucial role with its network of 50,000 drivers, ensuring deliveries across Mongolia’s provinces.
🛍️ Before and After Taobao
E-commerce in Mongolia is growing rapidly, with new businesses and consumers turning to online shopping and selling. In 2024, the sector is expected to hit $279.6 million, a 36.5% increase from the previous year. This growth trajectory continues, with revenue forecasted to reach $463.2 million by 2025.
🫧 Before the advent of platforms like Taobao, Mongolia’s e-commerce scene was almost nonexistent. With a landlocked geography and limited access to global retail giants, online shopping was mainly limited to local platforms offering a narrow range of goods. Many Mongolians resorted to offline methods for purchasing international products, which involved lengthy delays and exorbitant shipping fees.
Beyond Chinese e-commerce giants, Mongolians also shop from Amazon and other global platforms through services like Shoppy and Stora.mn.
With Temu’s arrival and strengthened logistics partnerships, both individual shoppers and retail businesses enjoy faster, more affordable, and more reliable access to the global market—a transformation that once seemed out of reach.
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ECONOMY & BUSINESS
POLITICS
Emperor Naruhito and Queen Masako of Japan to visit Mongolia for the first time. (President.mn)
Mongolia to Participate in Its Second PISA. (Montsame)
Frozen Hooves, Fragile Rights: Mongolia’s Winter Horse Racing Controversy. (InsideMongolia)
Mongolia's Workforce Demand in 2025 to Reach 83.7 Thousand. (Montsame)
Starting Today, Bus Fares for Citizens are Set at ₮1,000. (Ulaanbaatar)
CULTURE & LIFESTYLE
Mongolian Sumo Wrestler Becomes 74th Yokozuna. (BBC)
From Mongolia to Ireland, Ancient DNA Reveals History of Sheep-Human Connections. (TechnologyNetworks)
Wildfires Ravage 1.5 mln Hectares of Land in Mongolia in 2024. (News.AZ)
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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg
Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.