Chinese Listed Company Chairmen Propose 2026 Interim Cash Dividends; Some Also Initiate Share Buybacks

Recently, several listed companies announced that their chairmen had proposed interim profit distributions for 2026, aiming to reward shareholders with cash dividends. The announcements stated that the core motivation was to practice an investor-oriented development philosophy, share operating results with investors, enhance the company's investment value, and increase investors' sense of gain. Upon receiving the proposals, the companies will evaluate them against their own development plans and profitability, formulate profit distribution plans based on first-half 2026 financial conditions, submit them to the board and shareholders for approval, and fulfill information disclosure obligations in a timely manner.

Some listed companies received both dividend and buyback proposals from their chairmen. For example, on July 24, Shenzhen Aoto Electronics Co. , Ltd. announced that it had received proposals from its controlling shareholder, actual controller, and chairman Wu Hanqu for implementing a 2026 interim dividend and a share buyback. The buyback proposal was based on confidence in the company's future development prospects and recognition of its value, aimed at protecting investors' legitimate rights and interests, enhancing investor confidence, and improving the company's long-term incentive mechanism. After considering the company's operating conditions, business development prospects, financial status, and future profitability, the proposal recommended that the company repurchase some of its issued public shares through centralized bidding using its own funds and self-raised funds, to be used for employee stock ownership plans or equity incentives. The practice of chairmen proactively proposing interim dividends and simultaneously initiating share buybacks has become one of the methods for some listed companies to reward shareholders, stabilize market value, and improve internal incentives.