HUITONGDA NET (09878) is awarded "Best IR Hong Kong-listed Company"! Increasing shareholder dividends sends a positive signal.

On September 3rd, the winners of the 20th New Fortune Gold Medal Secretary and the 7th New Fortune Best IR Hong Kong Stock Company were announced, with HUITONGDA NET (09878) winning the "Best IR Hong Kong Stock Company" award. The selection activities for New Fortune Gold Medal Secretary, New Fortune Best IR Hong Kong Stock Company, etc. are one of the most prestigious awards in the capital market, with extensive recognition both domestically and internationally. New Fortune evaluates the Hong Kong stock connect component stocks in a combined "objective + subjective" manner, standardizing the market management and risk control levels of the 523 Hong Kong stock connect target companies as objective indicators. Through horizontal data comparison across the market, 326 candidate companies were selected for the voting stage. In the end, 40 companies stood out and received the honor of "Best IR Hong Kong Stock Company", with a total market value exceeding 3.71 trillion Hong Kong dollars, with an average value of 928.40 billion, far exceeding the average value of 740.44 billion for all Hong Kong stock connect companies, demonstrating stronger market competitiveness and risk resistance. It is reported that HUITONGDA NET is a sector-connected company under the NETDRAGON brand that deeply cultivates the lower-tier retail market, empowering township husband-and-wife stores through digital technology and supply chain capabilities. The business model mainly connects major brands in the industrial chain upstream and downstream, and connects township husband-and-wife stores to the urban-rural circulation market, enabling brand products to reach end consumers. As of June 2024, the company has established a retail ecosystem covering 21 provinces and municipalities in China, with over 25,000 townships. On August 28th, HUITONGDA NET released its financial report for the first half of 2024, achieving operating income of 32.86 billion yuan, gross profit of 1.15 billion yuan, and adjusted net profit attributable to the mother exceeding 125 million yuan. During the period, operating quality steadily improved, with a 0.5 percentage point increase in gross profit margin, and sustained positive operating cash flow, exceeding 2.48 billion yuan. As of June 2024, the company's cash on hand (time deposits, pledged deposits, cash equivalents, etc.) was 9.9 billion yuan. It is worth noting that HUITONGDA NET actively rewards shareholders. In July of this year, through the proposal to establish the "Shareholder Dividend and Reward Plan for the Next Three Years (2024-2026)", the company will annually distribute cash dividends not less than 15% of the distributable profits realized that year. In addition, if the company's profitability maintains high-speed growth and achieves a year-on-year increase of over 60% in net profit attributable to the mother for two consecutive years, a special cash dividend plan for that year will be initiated to further enhance shareholder dividend rewards. New Fortune stated that, in the overall sluggish market conditions of all Hong Kong stock connect companies, the average return on net assets of the "Best IR Hong Kong Stock Companies" showed a positive trend, robustly resisting market downturns. According to statistics, the average number of share repurchases among the "Best IR Hong Kong Stock Companies" in 2023 was 46.77 thousand shares, higher than the overall average level of all Hong Kong stock connect companies, showing a more active stance towards share repurchases. Starting from optimizing capital structure and maintaining company investment value, these companies are sending positive signals to the market and investors.