Ecology of Cash Dividends Among Shenzhen Stock Exchange Listed Companies Continues to Improve, Building Solid Foundation of Investment Value Through Stable Returns

Staff Reporter Tian Peng

Enhancing investor returns is a key part of promoting high-quality development in the capital markets. On March 6, at an economic-themed press conference, China Securities Regulatory Commission Chairman Wu Qing clearly stated that during the 14th Five-Year Plan period, key measures to promote high-quality development of the capital market include improving incentive and restraint mechanisms, encouraging listed companies to improve governance, strengthening dividend payouts and buybacks, continuously enhancing investment value and investor returns, energizing mergers and acquisitions markets, promoting efficient resource allocation, and helping cultivate more world-class enterprises.

Under the resonance of policy guidance and market practice, dividend payments by A-share listed companies have shown new trends of increased scale, optimized pace, and more stable mechanisms. Taking the Shenzhen Stock Exchange market (hereinafter “Shenzhen Market”) as an example, data shows that its total dividends have remained steadily above 500 billion yuan for many years, with the total dividend in 2025 exceeding 540 billion yuan. It is clear that Shenzhen’s dividend ecosystem is accelerating from a “periodic dividend wave” toward “institutional normalization,” gradually building a virtuous cycle of “financing—development—returns” in the capital market.

Institutional Upgrading of the Dividend Mechanism

Mid-term dividends become a new highlight

In recent years, increasing the dividend levels of listed companies and strengthening investor returns have become important tools for driving high-quality market development. From the “Several Opinions of the State Council on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Capital Market” emphasizing “strengthening supervision of cash dividends,” to the China Securities Regulatory Commission’s 2026 systematic work meeting proposing “improving systems for dividends, buybacks, equity incentives, and employee stock ownership,” and now including dividends as one of the key measures for the next five years, policy guidance has been consistent.

With continuous policy guidance, the cash dividend ecosystem of Shenzhen-listed companies has been steadily optimized. For example, in 2025, the total mid-year dividends paid by Shenzhen companies reached 138.094 billion yuan, an increase of nearly 30% year-on-year, serving as an important means for listed companies to shorten return cycles and enhance investor satisfaction.

Lixun Precision Industry Co., Ltd. (hereinafter “Lixun Precision”) exemplifies this trend. On February 5, 2026, Lixun Precision announced its 2025 three-quarter profit distribution plan, distributing a total of 1.165 billion yuan in cash dividends to all shareholders. Notably, this was its first mid-term dividend since going public 16 years ago.

Furthermore, the stability and predictability of dividends continue to strengthen. An increasing number of listed companies are revising articles of association, developing medium- and long-term dividend plans, clarifying dividend ratios and frequencies, and streamlining mid-term dividend review procedures, actively subjecting themselves to market oversight.

Data shows that in 2024, 216 Shenzhen companies issued “2024-2026 Shareholder Dividend Return Plans”; in 2025, an additional 165 companies announced dividend plans for the next three years, signaling stable returns through institutionalized documents. Meanwhile, 130 companies formulated 2025 mid-year dividend plans around the time of their 2024 annual reports, integrating mid-term dividends into their overall annual profit distribution plans, resulting in more stable dividend frequencies and shorter return cycles.

Expanding the Stable Dividend Group

Private enterprises become the main force of dividends

As awareness of dividends increases, the group of stable dividend-paying companies in Shenzhen continues to grow. Over 1,000 companies have implemented cash dividends for three consecutive years, gradually forming a pattern of long-term, sustained, and stable investment returns.

On one hand, leading companies are taking the lead in dividend scale. For example, on the evening of March 9, CATL (Contemporary Amperex Technology Co. Limited) announced its 2025 profit distribution plan, proposing to distribute 69.57 yuan in cash dividends per 10 shares (tax included), totaling 31.532 billion yuan in cash dividends (tax included).

On the other hand, private enterprises have become an important force in Shenzhen’s cash dividends. For instance, among companies in Shenzhen that paid “red envelopes” before the 2026 Lunar New Year, nearly 60% were private enterprises, with total payouts exceeding 8 billion yuan. The average dividend per private company was about 120 million yuan, demonstrating their firm commitment to rewarding investors and reflecting the steady development and good profitability of the private economy.

Liu Yonghao, the actual controller of New Hope Liuhe Co., Ltd., told Securities Daily that since going public, the company has adhered to the business philosophy of “creating value together with shareholders,” highly valuing shareholder returns, strictly following relevant laws, regulations, normative documents, and regulatory requirements, and developing profit distribution policies based on the Articles of Association. Under the premise of maintaining stable operations and healthy development, the company has implemented a continuous and stable dividend policy, with 18 distributions totaling 6.4 billion yuan in cash dividends to all shareholders, sharing the company’s operational achievements with investors. Liu Yonghao also stated, “We will continue to strictly implement cash dividend policies, enhance investment value through market value management, and safeguard shareholders’ rights and interests.”

Robust Performance Supports “Red Envelope Rain”

High returns and high growth go hand in hand

As the 2025 annual reports are gradually disclosed, a new round of “red envelope rain” is unfolding among Shenzhen-listed companies, and behind each “red envelope” lies solid performance support.

For example, on March 6, Desay SV Automotive Electronics Co., Ltd. (hereinafter “Desay SV”) announced its 2025 annual profit distribution plan, proposing a cash dividend of 12.50 yuan per 10 shares, totaling 742 million yuan in dividends, accounting for 30.25% of the 2025 net profit attributable to shareholders.

Desay SV stated that high returns stem from high growth. The company focuses on three major areas: intelligent cockpits, intelligent driving, and connected services. In 2025, it achieved operating revenue of 32.557 billion yuan and net profit of 2.454 billion yuan, representing year-on-year increases of 17.88% and 22.38%, respectively, providing a solid foundation for dividend payments.

Additionally, on the same day, Shanjin International Gold Co., Ltd. also announced its dividend plan, proposing a cash dividend of 4.8 yuan per 10 shares, totaling 1.332 billion yuan, with dividends accounting for 44.82% of the 2025 net profit attributable to shareholders, sharing the company’s growth with shareholders through high cash dividend payouts.

Market experts say that the dividend practices of these two companies fully demonstrate that Shenzhen-listed companies are gradually realizing a virtuous cycle of “performance growth—profit improvement—cash dividends,” with investment value and investor returns rising in tandem.

From a “dividend wave” to “normalization,” the upgrade of cash dividends among Shenzhen-listed companies reflects the vibrant development of high-quality capital markets. Driven by both policy guidance and corporate initiative, Shenzhen’s dividend ecosystem will continue to improve, further enhancing market investment appeal and helping to build a more mature, stable, and dynamic capital market ecosystem.