Core Viewpoint - Zhejiang Hongqingtian Shoe Industry Co., Ltd. announced a cash dividend of 0.25 CNY per share for the 2024 fiscal year, approved at the annual shareholders' meeting on May 19, 2025 [1][3]. Distribution Plan - The dividend distribution is for the fiscal year 2024, targeting all shareholders registered with the China Securities Depository and Clearing Corporation Limited Shanghai Branch as of the close of trading on the day before the equity registration date [2]. - The total number of shares eligible for the dividend is 565,825,782 after excluding 10,375,018 shares held in the company's repurchase account, resulting in a total cash dividend payout of 141,456,445.50 CNY [3]. Dividend Calculation - The cash dividend of 0.25 CNY per share is inclusive of tax, and there will be no capital reserve conversion into additional shares or stock bonuses [3]. - The reference price for ex-dividend trading will be calculated as the previous closing price minus the virtual cash dividend of 0.2455 CNY per share [6]. Implementation Method - Cash dividends will be distributed through the China Securities Depository and Clearing Corporation Limited, with shareholders who have completed designated transactions able to receive their dividends on the payment date [7]. - Specific shareholders, including Hongqingtian Group Co., Ltd. and the first employee stock ownership plan, will receive dividends directly from the company [8]. Taxation Information - Individual shareholders holding shares for over one year will be exempt from personal income tax on dividends, while those holding for less than one month will have their dividends fully taxed [9]. - For Qualified Foreign Institutional Investors (QFII), a 10% withholding tax will apply, resulting in a net dividend of 0.225 CNY per share [10]. - Hong Kong Stock Connect investors will also face a 10% withholding tax, with a net dividend of 0.225 CNY per share [11].

Core Viewpoint - The acquisition of beauty brand Rhode by elf Beauty for $1 billion highlights the current trend of active mergers and acquisitions in the global consumer sector, showcasing the potential for rapid growth and market disruption by emerging brands [3][5][23]. Group 1: Acquisition Details - elf Beauty will acquire Rhode for $600 million in cash and $200 million in newly issued common stock, with an additional potential payment of $200 million based on the brand's growth over the next three years [7]. - This acquisition marks elf Beauty's largest deal to date and positions Rhode's founder, Hailey Bieber, as Chief Creative Officer and Innovation Lead, responsible for creative direction and marketing [8][10]. Group 2: Rhode's Market Performance - Founded just three years ago, Rhode has achieved over $212 million in annual net sales, primarily through a direct sales model and a limited product range of only 10 items [21]. - The brand's standout product, a lip balm, sold 1 million units in its first year, generating $16 million in revenue from a single SKU [21]. - Rhode's marketing strategy has effectively utilized social media, amassing 1.5 million followers on TikTok and over 67 million views on related topics on Xiaohongshu [21]. Group 3: Industry Trends - The consumer sector is witnessing a surge in mergers and acquisitions, with notable transactions including Skechers' agreement to be acquired for approximately $9.4 billion and Prada's acquisition of Versace for $1.375 billion [24][26]. - The consumer industry is perceived as resilient and attractive for investment during economic fluctuations, leading to increased capital interest in acquiring quality assets [26][28]. - Investment firms are actively raising funds for large-scale acquisitions, with L Catterton recently securing $11 billion in committed capital, indicating a strong focus on merger opportunities in the consumer space [28][29].

Core Viewpoint - The acquisition of beauty brand Rhode by e.l.f. Beauty for $1 billion highlights the current trend of active mergers and acquisitions in the global consumer sector, showcasing the potential for rapid growth and market disruption by emerging brands [1][3][5]. Group 1: Acquisition Details - e.l.f. Beauty will acquire Rhode for $600 million in cash and $200 million in newly issued common stock, with an additional potential payment of $200 million based on the brand's growth over the next three years [5]. - This acquisition marks e.l.f. Beauty's largest deal to date, with Rhode's founder, Hailey Bieber, taking on the role of Chief Creative Officer and Innovation Lead [5][7]. Group 2: Rhode's Market Performance - Rhode, founded just three years ago, achieved annual net sales of over $212 million, driven by a successful product launch that included a viral lip balm and a lip balm phone case [1][15]. - The brand's marketing strategy has proven effective, with a significant social media presence, including 1.5 million followers on TikTok and over 67 million views on related topics on Xiaohongshu [14][15]. Group 3: Industry Trends - The consumer sector is experiencing a wave of mergers and acquisitions, with notable transactions such as Skechers being acquired for approximately $9.4 billion and Prada's acquisition of Versace for $1.375 billion [17]. - The consumer industry is characterized by stable cash flows, making it attractive for investment, especially during economic fluctuations, as companies seek to acquire quality assets [18].

Core Points - The company announced a cash dividend distribution of 0.15 RMB per share (including tax) for the fiscal year 2024, approved at the shareholders' meeting on May 12, 2025 [2][4] - The total cash dividend to be distributed amounts to 60,147,000 RMB (including tax), based on a total share capital of 400,980,000 shares [4] Distribution Details - The dividend will be distributed to all shareholders registered with the China Securities Depository and Clearing Corporation Limited, Shanghai Branch, as of the close of trading on the day before the dividend record date [3] - The distribution method includes cash dividends being paid through the clearing system of the China Securities Depository and Clearing Corporation Limited, with specific instructions for shareholders who have or have not completed designated trading [5] Taxation Information - For individual shareholders holding shares for more than one year, the dividend income is exempt from personal income tax, resulting in an actual cash dividend of 0.15 RMB per share [10] - For qualified foreign institutional investors (QFII), the dividend will be distributed at 0.135 RMB per share after a 10% corporate income tax deduction [11] - For Hong Kong Stock Exchange investors, the cash dividend will also be distributed at 0.135 RMB per share after a 10% withholding tax [11]

Core Viewpoint - The legal opinion issued by Beijing Zhide Law Firm confirms that the 2024 annual general meeting of Zhejiang Hongqingtian Shoe Industry Co., Ltd. was convened and conducted in compliance with relevant laws and regulations, ensuring the legality and validity of the meeting and its resolutions [1][22]. Group 1: Meeting Procedures - The notice for the annual general meeting was announced on April 29, 2025, detailing the time, location, and agenda [2][3]. - The meeting was held on May 19, 2025, combining both on-site and online voting methods [3][4]. - The location for the on-site meeting was specified as 2357 Shuangta Road, Oubei Street, Yongjia County, Wenzhou City, Zhejiang Province [4]. Group 2: Attendance and Voting - A total of 111 shareholders and representatives attended the meeting, holding 56,333,475 shares, which accounted for 9.96% of the total voting shares [5]. - The voting process included both on-site and online methods, with results being counted and verified by representatives [6][22]. Group 3: Voting Results - The resolutions presented at the meeting received overwhelming support, with the majority of votes in favor, such as 99.5354% for one of the proposals [6][8]. - Specific voting results included: - 56,071,755 shares in favor (99.5354%), 245,020 against (0.4349%), and 16,700 abstentions (0.0297%) for one proposal [6]. - 56,050,695 shares in favor (99.4980%), 264,080 against (0.4687%), and 18,700 abstentions (0.0333%) for another proposal [6]. - The voting results consistently showed a high percentage of approval across multiple proposals, indicating strong shareholder support [7][10][19].

Meeting Details - The shareholders' meeting was held on May 19, 2025, at the specified location in Wenzhou, Zhejiang Province [1] - The meeting was presided over by Vice Chairman Qian Fan, and voting was conducted through both on-site and online methods, complying with relevant laws and regulations [1][6] Voting Results - All proposed resolutions were approved with significant majority votes, including: - A resolution received 56,071,755 votes in favor, accounting for 99.5354% [1] - Another resolution garnered 56,050,695 votes in favor, representing 99.4980% [1] - A further resolution achieved 56,069,755 votes in favor, equating to 99.5318% [1] - The voting results consistently showed a high approval rate, with most resolutions exceeding 99% in favor [2][3][4] Legal Compliance - The meeting's procedures, participant qualifications, and voting processes were confirmed to be in accordance with the Company Law, Securities Law, and the company's articles of association by the attending lawyers [6]

Core Points - The company announced a cash dividend distribution of RMB 0.15 per share (including tax) for its A shares [1] - The total cash dividend to be distributed amounts to RMB 60,147,000 (including tax) based on a total share capital of 400,980,000 shares [1] - The dividend distribution plan was approved at the annual general meeting on May 12, 2025 [1] Distribution Dates - The record date for the dividend is May 23, 2025, with the last trading day on May 26, 2025, and the ex-dividend date also on May 26, 2025 [1] - Cash dividends will be distributed on the ex-dividend date to shareholders registered by the end of trading on the record date [1] Implementation Method - Cash dividends for unrestricted circulating shares will be distributed through the China Securities Depository and Clearing Corporation Limited, Shanghai Branch [1] - Shareholders who have not completed designated transactions will have their dividends held by the clearing company until the transactions are completed [1] Taxation Information - For individual shareholders holding shares for more than one year, the cash dividend is exempt from personal income tax, resulting in an actual distribution of RMB 0.15 per share [2] - For shares held for one year or less, the company will not withhold personal income tax at the time of distribution, but tax will be calculated upon the sale of the shares [2] - For foreign institutional investors, the company will withhold tax according to relevant regulations, resulting in a net distribution of RMB 0.135 per share after a 10% withholding tax [4]

Group 1 - After the latest adjustments in China-US tariff policies, many foreign trade companies have resumed their supply to the US market and restarted production and promotion of export products [1][7] - In Longgang, Zhejiang, a surge in foreign trade has been observed with numerous US orders returning, leading to a busy production environment in packaging companies [3] - A high-tech company focused on food packaging is currently rushing to fulfill a batch of orders worth nearly $200,000 for the US market [5] Group 2 - Following the announcement of reduced tariffs, many foreign trade companies in Xiamen, Fujian, received urgent order requests from US clients [7] - A packaging technology company in Zhejiang has prioritized US orders, aiming for rapid delivery within 90 days and plans to establish subsidiaries in Mexico and Europe to adapt to tariff measures [8] - A shoe company reported that over 60% of its overseas business comes from the US, and after the tariff adjustments, it has started shipping previously accumulated inventory and received numerous new orders [10][11] Group 3 - A textile export company in Xiamen is actively shipping out previously accumulated inventory worth 10 million yuan and has received new orders totaling $2.7 million [13] - The general manager of a textile import-export company in Fujian emphasized the need to diversify by developing markets in other countries and launching a domestic brand this year [15]

Core Viewpoint - The acquisition of Skechers by 3G Capital for $9.42 billion marks the largest deal in the footwear industry to date, with significant implications for both companies and the market [2][5]. Group 1: Acquisition Details - Skechers announced its sale to 3G Capital for $9.42 billion (approximately 678 billion RMB), with the transaction expected to close in Q3 of this year, leading to Skechers' delisting from the NYSE [2]. - This acquisition is notable not only for its size but also because it represents 3G Capital's first foray into the footwear sector, having previously focused on food and beverage companies [5][19]. - Warren Buffett expressed interest in acquiring Skechers, indicating a potential valuation of around $10 billion (approximately 720 billion RMB) [2]. Group 2: Company Performance - Skechers achieved a global sales increase of 12.1% year-over-year, reaching nearly $9 billion, with a net profit of $640 million, and is projected to reach $10 billion in revenue by 2026 [4]. - The brand holds the third-largest market share in the global sportswear market, trailing only Nike and Adidas [4]. - Skechers has seen significant growth in China, with retail sales increasing from 74 million RMB in 2008 to 16.6 billion RMB in 2019, representing a compound annual growth rate of 73% [22]. Group 3: 3G Capital Background - 3G Capital, founded in 2004, is known for its large-scale investments and has a history of successful acquisitions in the food and beverage sector, including Anheuser-Busch and Kraft Heinz [10][17]. - The firm is led by three Brazilian billionaires, including Jorge Paulo Lemann, who is recognized as one of the wealthiest individuals in Brazil [4][10]. - 3G Capital's investment strategy focuses on acquiring companies with strong brand potential but poor management, allowing for operational improvements and cost reductions [16][14]. Group 4: Market Context and Future Outlook - The acquisition comes at a time when Skechers is facing challenges in the Chinese market, with a reported 0.9% decline in sales and a 16% drop in Q1 of this year [24][25]. - Skechers has withdrawn its earnings guidance for FY2025 due to uncertainties in the Chinese market and global economic conditions [25]. - 3G Capital aims to leverage its expertise to enhance Skechers' growth trajectory, with plans to open an additional 3,000 stores in China and achieve a revenue target of 30 billion RMB from the Chinese market by 2026 [30][31].

Core Viewpoint - The acquisition of Skechers by 3G Capital marks the largest merger deal in the footwear industry to date, with a transaction value of approximately $9.4 billion (around 68 billion RMB) at a cash price of $63 per share, expected to be completed in Q3 of this year [2][3]. Company Overview - Skechers, founded in 1992, focuses on affordable athletic and casual footwear, becoming the third-largest sports brand globally with sales of $8.97 billion in 2024, following Nike and Adidas [2][5]. - The company entered the Chinese market in 2007 and has localized its supply chain, with over 90% of products sold in China being "Made in China" [5]. Financial Performance - In 2024, Skechers achieved a sales revenue of $8.97 billion, a 12% year-on-year increase, marking a historical high, with revenue nearly doubling over the past five years [6]. - However, the company faces challenges, including a 16% decline in sales in China over two consecutive quarters and rising costs due to recent tariff policies affecting its supply chain [6]. Strategic Implications - The decision to go private is seen as a strategic move to mitigate pressures from public markets and to allow for business adjustments in response to trade uncertainties [6]. - 3G Capital's acquisition strategy typically involves identifying high-potential brands in struggling conditions, which aligns with Skechers' current situation [9]. Market Context - The global athletic footwear market is projected to grow at a compound annual growth rate of 5% from 2024 to 2029, indicating potential for further expansion [9]. - Skechers' current price-to-earnings ratio of 14 is significantly lower than that of its competitors, making it an attractive acquisition target for 3G Capital [9]. Acquisition Strategy - Unlike previous acquisitions, 3G Capital plans to retain Skechers' current CEO and management team, indicating a shift towards a more collaborative approach rather than aggressive restructuring [10]. - This acquisition reflects a broader trend in the consumer sector, where significant merger and acquisition activity is occurring across various industries, including food and beverage, apparel, and small appliances [12][16].