According to a research report released by CLSA, Li Ning Co., Ltd. (SEHK: 02331) has announced a special dividend of RMB 2.32 per share (HKD 2.71). Based on the closing price of HKD 14.72 on November 5, the dividend yield reaches 18.4%.

The investment bank expects the stock price to react positively on November 6, but emphasizes that the 18.4% dividend yield is not a forecast of the stock price increase. Based on approximately 2.585 billion shares, the total special dividend amounts to approximately RMB 6 billion (about HKD 7 billion), equivalent to about 31% of Li Ning Co., Ltd.'s net cash of RMB 19.4 billion as of the end of the first half of 2026.

CLSA notes that this special dividend helps strengthen the balance sheet of Viva Goods Company Limited (SEHK: 00933), Li Ning's largest shareholder. If the shareholding remains unchanged on the record date, Viva Goods Company Limited is expected to receive approximately RMB 1.16 billion (about HKD 1.35 billion) in cash. If used to repay debt, this would help reduce its debt level.

The investment bank also points out that since the potential special dividend news was announced, Li Ning Co., Ltd.'s stock price has risen 15.1%, while fourth-quarter performance remains under pressure, which may limit the positive reaction of the stock price to the special dividend news.