Sanima Mai Hydropower AGM Called No Dividend Decision

13th March 2026, Kathmandu

Sanima Mai Hydropower Limited (SHPC) has officially called for its 14th Annual General Meeting (AGM) to be held on Chaitra 29, 2082.

Sanima Mai Hydropower AGM

Following a board of directors meeting on Falgun 28, the company announced that it will not be distributing any dividends—neither cash nor bonus shares—for the fiscal year 2081/82. This decision comes amidst a challenging year for the company, marked by significant operational disruptions due to natural disasters.

AGM Details and Book Closure

Shareholders should note the following key dates to ensure their participation in the upcoming corporate proceedings:

AGM Date: Chaitra 29, 2082

Book Closure Date: Chaitra 12, 2082 (for one day)

Eligibility: Only shareholders whose names are registered in the company’s books before the Chaitra 12 closure will be eligible to attend the meeting.

While the specific venue and time are yet to be finalized in the upcoming formal notice, the meeting is expected to cover the approval of the annual financial statements, the appointment of auditors, and a review of the company’s recovery strategy following recent infrastructure damage.

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Financial Context: Why No Dividend?

The decision to skip a dividend payout for FY 2081/82 is largely attributed to a decrease in revenue and net profit caused by external factors. According to recent quarterly reports, the company faced a 13.99% decrease in revenue from electricity sales during the third quarter of 2081/82.

The primary reasons for this financial downturn include:

Infrastructure Damage: Severe flooding and landslides in October 2025 (Ashwin 2082) significantly damaged the headworks of both the 22 MW Mai Hydropower Plant and the 7 MW Mai Cascade Hydropower Plant.

Transmission Line Shutdown: Damage to the Nepal Electricity Authority’s (NEA) 132 kV Kabeli corridor line resulted in a 37-day complete shutdown of power evacuation, directly impacting the company’s cash flow.

Tax Status Change: As of Falgun 15, 2081, the Mai Hydropower Plant completed its 10-year full tax-exempt period and is now subject to a 50% income tax concession (12.5% effective rate), increasing the company’s tax liability.

Operational Update: Resumption of Generation

In a positive development for long-term investors, Sanima Mai Hydropower announced that both the Mai and Mai Cascade projects successfully resumed electricity generation on February 22, 2026 (Falgun 10, 2082), following extensive repairs. The technical teams have completed testing on the headrace culverts and flushing chambers, re-injecting 29 MW of power back into the national grid.

Looking Ahead

The 14th AGM will be a critical forum for management to explain how they intend to navigate the current financial hurdles and leverage their investments in associate companies like Sanima Middle Tamor Hydropower. Shareholders are encouraged to review the company’s audited reports ahead of the meeting to better understand the balance between current operational recovery and future dividend potential.

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