Mio Exhibition's Net Profit Halved Yet Still Distributes Large Dividends—How to Resolve Cash Flow Pressure?

According to the latest public information, Mio Exhibition (stock code: 300795.SZ) is facing severe financial challenges. While its net profit has declined sharply, the company still maintains a high dividend ratio, leading to cash flow pressure and widespread market attention [1].

Mio Exhibition’s financial data shows significant volatility. From 2022 to 2024, its revenue surged from 348 million yuan to 835 million yuan and then fell back to 751 million yuan, while net profit jumped from 50 million yuan to 188 million yuan and then dropped to 155 million yuan [1]. In the first three quarters of 2025, performance further deteriorated:

• Revenue
  : Down 5.67% year-on-year to 401 million yuan
• Net Profit
  : Halved by 49.17% year-on-year, remaining at only 35 million yuan
• Net Profit Margin
  : Only 10.04%, down 7.17 percentage points year-on-year [1]

This sharp volatility is highly related to its business structure. As a leading enterprise in China’s overseas self-organized exhibitions, the revenue from overseas self-organized exhibition business has continued to account for more than 90%, mainly concentrated in emerging markets such as Indonesia, the United Arab Emirates, and Vietnam. In 2025, external shocks such as exhibition cancellations due to heavy rains in Indonesia and changes in U.S. trade policies directly amplified the vulnerability of its performance [1].

What is more noteworthy is the contradiction at the corporate governance level.

The specific dividend situation is as follows:

• In 2024, the total proposed cash dividend accounted for
  94.94%
  of the net profit attributable to shareholders of the listed company
• The cash dividend per share in 2024 was
  0.65 yuan
  (interim dividend: 0.3 yuan/share, annual dividend:0.35 yuan/share)
• In 2024, the company also implemented a capital reserve conversion plan of 3 shares for every 10 shares held [2]

However, in sharp contrast to the high dividends, cash flow pressure continues to increase:

• First three quarters of 2025
  : Net cash flow from operating activities was 41 million yuan, down 20.81% year-on-year
• 2024
  : Net cash flow from operating activities was 169 million yuan, a
  37.6%
  decrease from 271 million yuan in 2023
• A-share IPO fundraising
  : 302 million yuan was exhausted by the end of 2024, leaving only 1.2295 million yuan [1]

There are multiple reasons for Mio Exhibition’s cash flow pressure:

1. Vulnerability of Business Model
   : The company is highly dependent on overseas exhibition business, which is significantly affected by external factors such as geopolitics, natural disasters, and trade policies. In 2025, exhibition cancellations due to heavy rains in Indonesia directly affected revenue and cash inflow [1].

2. Pressure on Payment Collection Cycle
   : The exhibition industry usually adopts a prepayment model, but with the expansion of business scale and changes in customer structure, accounts receivable turnover may face pressure.

3. R&D Investment and Transformation Costs
   : The company attempts to break through via digital transformation, investing a total of 64.918 million yuan in R&D expenses during the reporting period. However, the revenue from digital exhibitions accounts for only 2.14%, and the effect of technological empowerment has not yet been scaled [1].

4. Narrowing Financing Channels
   : The A-share IPO fundraising has been exhausted, and the company has to turn to Hong Kong IPO for external financing, which reflects the problem of insufficient internal cash generation capacity [1].

Facing cash flow pressure, Mio Exhibition is taking the following measures:

1. Hong Kong IPO Financing
   : On December 24, 2025, the company submitted a prospectus to the Hong Kong Stock Exchange, planning to build an “A+H” dual capital platform and use the funds for business expansion [1].

2. Digital Transformation
   : Launched the “AI Smart Exhibition” platform, attempting to improve efficiency and expand revenue sources through technological means, but the effect is limited so far [1].

3. Business Diversification
   : The company is trying to reduce its dependence on a single market and business, but transformation takes time [1].

However, the market still has doubts about the contradiction between the company’s high dividend strategy and financing needs. Against the background of declining performance and cash flow pressure, balancing shareholder returns and enterprise development will be an important issue for the company’s management.

[1] 新浪证券 - “米奥会展冲刺港股：收入、净利润持续下降 高分红背后现金流承压” (https://finance.sina.com.cn/stock/aigcy/2025-12-31/doc-inhestek9109184.shtml)

[2] 浙江米奥兰特商务会展股份有限公司2024年年度报告摘要 (http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2025/2025-4/2025-04-26/10985462.PDF)