A-share Leading Companies Issue Billions in "Red Envelopes", Over 30 Companies Distribute Dividends Exceeding 550 Billion in a Month

As listed companies gradually disclose their 2025 performance reports, cash dividends are being announced simultaneously, with some leading A-share companies issuing large “red envelopes.”

On the evening of March 11, Tianwei Food (603317.SH) and Qide New Materials (300995.SZ) announced their dividend plans. The former plans a “10-for-5.5 yuan” dividend, totaling 582 million yuan in cash; the latter plans a “10-for-1.2 yuan” dividend, totaling 10.09 million yuan. Prior to this, several other leading companies announced dividend plans within the month, including CATL (300750.SZ) and Foxconn Industrial Internet (601138.SH), which plan to distribute 31.528 billion yuan and 12.901 billion yuan respectively.

According to Wind data, more than 30 A-share companies have disclosed dividend plans since the beginning of the month, all based on their 2025 annual reports, with a total planned payout of 55.1 billion yuan. Many companies are offering dividends exceeding 1 yuan per share, including CATL, which plans to distribute 69.57 yuan per 10 shares, and Tonghuashun (300033.SZ), which plans to convert 4 shares for every 10 shares and pay 51 yuan.

Some companies have already implemented their 2025 annual report dividends. Recently, Wohua Medicine (002107.SZ) and Zhinan Zheng (300803.SZ) completed their dividend distributions and ex-dividend dates. Next week, Xin Dao Technology (699230.SH) will also carry out its dividend payout on the 19th.

Other companies are adopting a “combo punch” of dividends, not only paying cash but also issuing additional shares. However, industry insiders warn that high dividends and large share transfers by listed companies may conceal potential “traps.”

Leading companies continue to send out billion-yuan “cash red envelopes.”

Under ongoing policy guidance, investor awareness of returns has been steadily increasing, and profit distribution plans are being announced alongside performance disclosures.

According to Wind, as of March 11, 60 A-share companies have disclosed their 2025 annual reports, with 58 of them announcing profit distribution plans, accounting for nearly 97%.

This week, the A-share market experienced a small peak in dividend announcements, with 11 companies on the 10th and 6 on the 11th disclosing related plans. Including these, 32 companies have announced dividend plans this month, with a total payout of 55.106 billion yuan.

In terms of industry distribution, the companies planning dividends are concentrated in the computer and communication, electrical machinery and equipment manufacturing, and food manufacturing sectors. According to the China Listed Companies Association industry classification, 10 companies belong to the computer, communication, and other electronic equipment manufacturing industries, accounting for over 30% of the total companies announcing dividends this month.

In terms of total dividend payout, CATL is the most generous, planning to distribute 69.57 yuan per 10 shares, totaling 31.528 billion yuan; followed by Foxconn Industrial Internet, which plans to pay 6.5 yuan per 10 shares, totaling 12.901 billion yuan. Three other companies—Tonghuashun, ZTE (000063.SZ), and Shanjin International (000975.SZ)—each have total dividends exceeding 1 billion yuan, with amounts of 2.742 billion yuan, 1.966 billion yuan, and 1.332 billion yuan respectively.

Looking at per-share dividends, CATL and Tonghuashun lead, with per-share payouts of 6.957 yuan and 5.1 yuan respectively. Other companies with per-share dividends over 1 yuan include Desay SV (002920.SZ), Chongqing Brewery (600132.SH), and Kuf Medical (301087.SZ).

Some companies are not only paying cash dividends but also issuing additional shares, such as Tonghuashun and Jin Hai Tong (603061.SH). For example, Tonghuashun plans to issue 4.5 shares for every 10 shares held and pay 51 yuan per 10 shares, with total cash dividends of 2.742 billion yuan, and after the share issuance, the total share capital will be 753 million shares.

Additionally, three other companies are adopting a “dividend combo” approach. Anfu Technology (603031.SH) plans to issue 4.5 shares for every 10 shares and pay 1.2 yuan per 10 shares, with total cash dividends of 30.939 million yuan, and after the share issuance, the total share capital will reach 374 million shares. Jinhaitong (603061.SH) and Lianke Technology (001207.SZ) plan to issue 4.5 and 4 shares per 10 shares respectively, with dividends of 3.8 yuan and 5 yuan per 10 shares, totaling 23 million yuan and 107 million yuan respectively.

Furthermore, some companies are making arrangements for their 2026 mid-year dividends while announcing their 2025 dividends.

Anfu Technology disclosed on the evening of the 9th that to simplify the mid-year dividend process, the board of directors plans to propose to the shareholders’ meeting to approve and authorize the formulation of the 2026 mid-year dividend plan, under certain conditions such as current profitability, positive accumulated undistributed profits, and sufficient cash flow to support normal operations and sustained development.

Many dividend-paying companies have seen both revenue and net profit decline.

So, from a fundamental perspective, do these companies have the performance support for their recent “red envelope” payouts?

According to the data, among the 32 companies that announced dividend plans this month, about 70% showed increases in revenue and profits last year.

Leading companies like Foxconn Industrial Internet and CATL both saw revenue and profit growth in 2025. For example, Foxconn Industrial Internet achieved revenue of 902.887 billion yuan, up 48.22%, and net profit of 35.286 billion yuan, up 51.99%. Similarly, CATL reported revenue of 423.702 billion yuan and net profit of 72.201 billion yuan, with year-over-year increases of 17.04% and 42.28%, respectively.

Other companies with total dividends over 1 billion yuan also experienced growth last year. For instance, Tonghuashun’s revenue was 6.029 billion yuan, up 44%, with a net profit of 3.205 billion yuan, up 75.79%. Shanjin International achieved revenue of 17.099 billion yuan, up 25.86%, and net profit of 2.972 billion yuan, up 36.75%.

However, some companies announced dividend plans despite experiencing performance declines last year.

For example, Huitong Energy (600605.SH) reported revenue of 102.3 million yuan, down 24.48%, and net profit of 24.117 million yuan, down 74.64%. The company plans to pay a 0.4 yuan per 10 shares dividend, totaling 8.2513 million yuan.

Three other companies—Shandong Yabo (600529.SH), Nanjiao Food (605339.SH), and Tianwei Food—also faced declines in revenue and profit last year, with Tianwei Food paying the highest total cash dividend of 582 million yuan.

Regarding the dividend trend, Tian Lihui, director of the Financial Development Research Institute at Nankai University, told First Financial that policy guidance has been effective, and the trend of regular dividend payments by listed companies is becoming clear, with both scale and coverage expanding.

“Regulators are promoting regular dividends through mandatory dividend ratio guidelines, optimizing refinancing and dividend linkage mechanisms. Leading mainboard companies remain the main dividend payers, but high-growth sectors like the ChiNext and STAR Market are seeing faster dividend growth, and small- and medium-sized tech companies are increasingly aware of dividends,” he said.

He also warned investors to pay attention to the sustainability of dividends. “They should consider whether the company’s cash flow and profits can support dividends and whether dividend payouts might impact R&D and long-term development,” he added.

Regarding high dividends, Tian Lihui cautioned that investors should be wary of potential “traps.” “For example, whether high-dividend companies are borrowing money to pay dividends, and whether excessive dividends could weaken future growth potential,” he said.

Additionally, he pointed out that high share transfers are essentially a game of capital, prone to speculation, and that such transfers dilute earnings per share.

(This article is from First Financial)