Shoucheng Holdings (0697.HK) has continued to step up returns to shareholders. Data shows that since Chairman Zhao Tianyang took office in 2018, the company has returned approximately HK$6.877 billion to shareholders in total, including HK$5.98 billion in cumulative dividends (including announced but not yet distributed dividends for 2026) and HK$897 million in cumulative share buybacks. The parallel implementation of dividends and buybacks demonstrates that, while continuously improving its operating quality, the company is also steadily strengthening its tangible cash returns to investors.
Behind Shoucheng Holdings’ high level of shareholder returns lies the support of solid business fundamentals. Looking over a longer time horizon, since Chairman Zhao Tianyang assumed office in early 2018, the company’s total assets have grown from HK$8.186 billion to HK$15.57 billion, representing an approximately 1.9-fold increase over eight years and a compound annual growth rate of about 8.37%. Net profit attributable to shareholders increased from HK$57 million to HK$310 million, or about 5.4 times. This indicates that during the company’s strategic transformation, its profitability, asset depth, and capital market value have all improved continuously, laying a solid foundation for sustained dividends, buybacks, and business expansion. Meanwhile, the company’s financial structure has continued to improve. The latest annual report shows that in 2025, the ratio of net cash flow from operating activities to total assets increased by 98% year-on-year, while the asset-liability ratio fell to 28.4% and the interest-bearing debt ratio declined to 6.2%. This means that the company’s current high level of shareholder returns is not built on high-leverage overextension, but rather on proactive returns supported by an improved asset structure, stronger cash flow, and steady growth in its core businesses.
As its operating fundamentals continue to strengthen, Shoucheng Holdings has also been increasing the intensity of its shareholder returns. According to the latest annual report, the board has decided to declare total annual dividends of HK$780 million, corresponding to a dividend yield of about 5.6% based on the company’s average annual market capitalization. As a cross-market reference, the dividend yield of the Hang Seng Index stood at 2.94% as of February 27, 2026. Shoucheng Holdings’ payout level is therefore clearly above this market benchmark, making it particularly attractive in the current Hong Kong stock market environment, where investors are placing greater emphasis on certainty of returns.
In addition to continuous dividend payments, Shoucheng Holdings has also noticeably accelerated its share buyback efforts recently. According to the company’s latest disclosure, as of April 2, 2026, it had conducted 28 buybacks during the year, repurchasing a total of approximately 119 million shares for an aggregate amount of about HK$223 million. Since March 30 alone, the company has implemented buybacks on four consecutive trading days, with a cumulative repurchase amount of about HK$94.74 million. The clearly accelerated pace of recent buybacks not only reflects management’s recognition of the company’s long-term value, but also further reinforces the company’s proactive commitment to continuously rewarding shareholders and stabilizing market expectations.
In the current market environment, listed companies capable of sustaining high-level dividends while simultaneously carrying out share buybacks are relatively rare. On the one hand, Shoucheng Holdings continues to enhance shareholder returns through dividends and buybacks; on the other hand, it is steadily consolidating its operating foundation through its dual core businesses of asset operations and industrial funds, gradually forming a virtuous cycle of “improving operations, deepening cash resources, and enhancing shareholder returns.” As the company continues to deliver on its shareholder return mechanism, its long-term investment value is expected to become increasingly evident.