The share repurchase agreements include approximately US$384 million under the Rule 10b5-1 of the United States Securities Exchange Act of 1934 in the U.S. and approximately HK$1 billion for a similar program in Hong Kong. These agreements are in addition to the share repurchase agreements for the first half of 2026. We remain on track to return US$1.5 billion to shareholders in 2026, including approximately US$400 million in dividends and US$1.1 billion in share repurchases, through a mix of systematic and discretionary buybacks.

"Our target to return US$1.5 billion in capital to shareholders in 2026 represents approximately 9% of our current market capitalization[1]. Supported by our healthy balance sheet and strong cash generation, we remain dual-focused on driving business growth and delivering solid capital returns to shareholders," said Joey Wat, CEO of Yum China.

Beginning in 2027, Yum China intends to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. This is anticipated to translate into an average annual return of approximately US$900 million to over US$1 billion in 2027 and 2028, and to exceed US$1 billion in 2028.

Since 2017, Yum China has returned US$6.4 billion to shareholders through dividends and share repurchases.