Dividend policy

According to the profit distribution policy of the company's articles of association, if there is a surplus in the annual final accounts, taxes should be paid first to make up for accumulated losses, and then 10% should be set aside as statutory surplus reserves. However, this limit does not apply when the statutory surplus reserves have reached the paid-in capital. The rest will be set aside or transferred as special surplus reserves in accordance with the law; if there is still a surplus, and the undistributed surplus at the beginning of the same period is the accumulated distributable surplus, the board of directors shall prepare a profit distribution proposal and submit it to the shareholders' meeting for resolution on distribution.

The company's dividend policy is based on factors such as profitability, financial structure and future operating needs of the company. Every year, no less than 20% of the distributable profit of the current year is allocated to shareholders for dividends and bonuses. However, if the distributable profit of the current year is less than 2% of the paid-in capital, it can be decided to transfer all of it to retained earnings and not distribute it. When distributing dividends and bonuses to shareholders, it can be done in cash or stock, and the cash dividend shall not be less than 50% of the total dividend.