Topsports sales dip, profits decline amid market shifts

Topsports International Holdings (HKEX: 6110) announced a dip in revenue and a significant decline in profits for the fiscal year ended February 28, 2025, while increasing returns to shareholders through a higher dividend payout ratio. Revenue decreased by 6.6% year-over-year to RMB27.0 billion, while profit attributable to equity holders fell by 41.9% to RMB1.29 billion. Basic earnings per share were RMB20.74 cents, down from RMB35.69 cents in the prior year. The decrease was attributed to weakening consumer demand and reduced foot traffic in offline stores. Despite the profit downturn, the Board has recommended a final dividend of RMB2.00 cents per share and a special dividend of RMB12.00 cents per share, resulting in an annual dividend payout ratio of 135%. Cash and cash equivalents increased 32.3% year-over-year, reaching RMB2.59 billion. The company will hold its annual general meeting on July 18, 2025, and proposes to re-elect directors and seek mandates to issue and repurchase shares. The Company also plans to renew agreements with Belle International Holdings, as it is a related party. PricewaterhouseCoopers will seek reappointment as the auditor.