ACTIVATION GP (09919) continues its proactive dividend policy this year, sharing its development gains with shareholders. According to the company's announcement, the final dividend for the year ending December 31, 2025, is HK$0.032 per share, with a special final dividend of HK$0.033 per share. The total payout amounts to approximately HK$48.4 million, bringing the full-year dividend distribution to about HK$65.53 million. The ex-dividend date is set for June 3, 2026, with the dividend payment scheduled for June 18, 2026. Investors holding shares until the June 3 ex-dividend date can not only secure the high dividend yield but also retain a stake in this scarce, debt-free company with strong cash flow, providing a buffer against market volatility. Notably, this marks the fifth consecutive year of dividend payments for ACTIVATION GP, reflecting a long-standing high-dividend policy. The dividend payout ratio for 2025 reached approximately 80%, comprising about 50% as ordinary dividends and 30% as special dividends. The company's robust cash generation capability and sustainable business model underpin its ability to maintain this high payout level.

In an environment of declining market interest rates, Hong Kong-listed companies combining stable performance with consistent cash flow returns are becoming increasingly rare. As the largest provider of high-end luxury brand experiential marketing services in Greater China, ACTIVATION GP (09919) has served over 550 globally renowned brand clients, achieving a market share of 13.9% in 2025. As market sentiment shifts towards defensive strategies, the strategic value of high-dividend assets becomes more pronounced. ACTIVATION GP, leveraging its leadership in high-end brand experiential marketing, demonstrates the rare quality of balancing both value and growth. The company currently trades at a TTM P/E ratio of only about 8 times, with a dividend yield of 10%, significantly exceeding the average for Hong Kong's marketing sector. Furthermore, the company holds nearly HK$300 million in net cash, carries no interest-bearing debt, and maintains a strong liquidity position.

Simultaneously, ACTIVATION GP has shown remarkable business resilience amidst the complex and changing economic landscape of the consumer sector. Revenue for 2025 was approximately RMB 707 million, with a net profit of about RMB 81.1 million, translating to a net profit margin of approximately 11.5%. This represents a 1.2 percentage point increase from the 10.3% margin in the 2024 fiscal year. The company has deepened its moat in the traditional luxury industry, maintaining strong partnerships with international luxury brands such as CARTIER, CHANEL, LOUIS VUITTON, LORO PIANA, DIOR, PRADA, MIU MIU, and VAN CLEEF & ARPELS. It has executed several benchmark projects with significant industry impact, including the "Voyage Extraordinaire" exhibition for LOUIS VUITTON at Shanghai Taikoo Hui, which attracted over 360,000 visitors, effectively demonstrating its powerful marketing capabilities.

In response to cyclical adjustments within the luxury sector, ACTIVATION GP is also actively pursuing structural opportunities in emerging areas like beauty and sportswear, as well as within China's mid-to-high-end domestic brands. The company has created immersive experiential events for several renowned beauty brands, including LANCÔME's 90th Anniversary "Happiness Train" Celebration, the LANCÔME Super Repair Lab, and LA PRAIRIE's "Caviar Skyline Journey," successfully setting new standards for experiential marketing in the high-end beauty segment.

Looking ahead, as profitability improves and the high-dividend policy persists, companies like ACTIVATION GP, characterized by high dividends and strong cash flow, are well-positioned to navigate market cycles and create long-term value for investors.