Shares of Topsports International Holdings Ltd (06110.HK) surged 5.31% in intraday trading, as investors responded positively to the company's recently released annual financial results and dividend announcements.

Despite facing challenges in the fourth quarter, where total sales of retail and wholesale operations registered a mid-single-digit decline year-over-year, Topsports reported solid full-year financials. The company achieved a revenue of RMB 27,012.9 million for the fiscal year, with a gross profit of RMB 10,383.4 million and a healthy gross margin of 38.4%. Net income for the year stood at RMB 1,286 million.

What seems to have particularly excited investors is the company's generous dividend policy. Topsports declared a final dividend of RMB 2.00 cents per share. More notably, the company proposed a special dividend of RMB 12 cents per share, signaling confidence in its financial position and commitment to shareholder returns. This combination of strong annual performance and attractive dividend payouts appears to be driving the significant stock price increase.