It's still the older generation that cares for people, and Supor has distributed 99.95% of its net profit.

Presented by | Reading the Business Era

Editor | Li Xiaoyan

On April 2, Supor officially released its 2025 annual report and the dividend distribution proposal. Although performance faces periodic pressure, what is truly astonishing is that the company resolutely rolled out a dividend plan of “10 shares with a dividend of RMB 26.3,” totaling RMB 2.1B in cash dividends. The dividend payout ratio is 99.95%, nearly returning the full-year net profit to shareholders.

In fact, Supor’s management had already signaled this generous return in advance. In the company’s institutional research and survey in July 2025, Supor said, “Based on years of steady operations, the company has accumulated relatively high retained earnings in the early stage. To better return to shareholders, since 2021 the company has implemented a dividend distribution policy with a higher proportion. Going forward, the dividend plan will be dynamically adjusted according to the company’s capital expenditures and cash flow situation in the given year.”

From the operational details, Supor’s 2025 performance shows clear structural characteristics: the domestic sales market moved steadily forward with a growth rate of 2.74%, firmly strengthening the company’s core business base. Meanwhile, the export business was held back by weak demand in overseas markets, resulting in a modest decline of 0.85%. Despite this, overall revenue remained stable. Supor did not reduce shareholder returns; instead, it continued its consistent style of large-scale dividends. In 2023 to 2024, the dividend payout ratios reached 99.80% and 99.74%, respectively. Over just three years, the company cumulatively distributed RMB 6.51 billion in cash dividends. During an industry period when dividend payouts were shrinking, it moved against the trend.

Supor’s strong confidence in high dividends comes from solid cash flow and formidable financial resilience. In 2025, the company’s operating cash flow reached RMB 2.65B, up 2.41% year over year. For many consecutive years, it has reliably stayed above net profit, making the quality of earnings clearly evident. Ample on-balance-sheet monetary funds, a manageable debt level, and the current operating situation with no major capital expenditure plans mean that high dividends will not disrupt the company’s day-to-day operating rhythm, nor will they pose any threat to its ability to service debt. At the same time, the company’s ROE of 35.08% continues to rank among the absolute leaders in the industry, and asset operating efficiency has not been diminished in the slightest by high dividend payouts.

From an industry cycle perspective, Supor’s high-dividend policy is a rational choice under the stock-based competition landscape. At present, the cookware and small household appliances industry has entered a mature stage of stock-based competition and a fixed market structure, in which the marginal benefits of large-scale capacity expansion continue to decline. As an absolute industry leader, Supor’s market share and brand barriers are already deeply entrenched. In this situation, choosing aggressive expansion and blind layout would bring risks far greater than potential rewards. Therefore, the company decisively chose a “cash cow” development strategy—returning excess profits to shareholders in full so that investors can make their own resource allocation decisions.

High-proportion cash dividends over consecutive years have enabled Supor to build a dividend distribution system that is transparent, stable, and highly executable—securing its seat as the “cash milk cow” in China’s A-share consumer sector. Since its listing, the company’s cumulative dividend distribution has already exceeded RMB 13.5 billion. The dividend financing multiple is as high as 11 times, providing long-term capital with steady and continuous investment returns, effectively hedging market risks brought by earnings volatility, and greatly improving the stability of investors’ shareholdings. In market fluctuation cycles, it has built a solid defensive barrier. The SEB Group, the controlling shareholder, holds 83.16% of the shares. High dividend payouts not only tightly align the interests of the controlling shareholder and minority shareholders, moving in the same direction, but also demonstrates the controlling shareholder’s strong confidence in the stability of the company’s future cash flows and the sustainability of its operations.

When comparing horizontally across the entire small household appliances industry, Supor’s advantage in high dividends becomes even more prominent. In 2025, its dividend payout ratio is significantly higher than that of most companies in the industry. A dividend yield of over 6% ranks first and stays within the top tier among consumer-sector leaders, making its investment appeal far stronger than that of ordinary wealth management products and bond funds. This is absolutely not short-term speculation that would exhaust the future. Instead, in a market environment full of uncertainty, it steadily delivers certain value to every shareholder.